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Travelling abroad? Limit personal expenses to $250K on intnl credit cards

New Delhi, May 18, 2023

Any expense above this ceiling will require RBI's permission

Those travelling abroad will have to limit their personal expenses to $250,000 through international credit cards from now on. Any expense above this limit will require the permission from the Reserve Bank of India (RBI).

There was no such limit earlier on these expenses.

The Department of Economic Affairs (DEA) under the finance ministry has modified the relevant Foreign Exchange Management (Current Account Transactions) Rule in this regard.

Earlier, Rule 7 provided exemption from the limit to personal expenses through international credit cards when travelling abroad.

Now, foreign exchange spending on personal expenses, gifts, medical treatment etc will be subject to a ceiling of $250,000, beyond which the RBI’s approval will be required.

"This will impose restrictions on foreign travel expenses when an individual is abroad. It is aimed at the security of such expenses and conservation of forex reserves," said Jyoti Prakash Gadia, managing director, Resurgent India.

[The Business Standard]

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