(i) Banks or their subsidaires in India do not require permission from Reserve Bank of India from exchange control angle for issue of ICCs to residents. The credit card issuing banks or subsidiaries may remit to the overseas organisation with whom they have tie-up arrangement the annual fees/joining fees, late payments/deliquency fees, etc. , as per the rules framed by the overseas organisations concerned. The conditions governing the use of ICCs and the instructions to be followed by the card issuing banks/subsidiaries of banks are given in Annexure II.

(ii) Returning Indians maintaining Resident Foreign Currency (RFC) Accounts in India or Foreign Currency Accounts abroad can also use ICCs freely without any end-use restrictions provided the reimbursements are made by debit to their RFC accounts in India or foreign currency accounts held abroad.

(iii) Non residents are free to nominate any resident as additional /add-on card holder. The claims arising out of use of such cards should be met by the non-residents from their foreign currency accounts maintained in India or abroad. If the additional /add-on card has been arranged by a NRI the claims against the card may be met from the NRIs NRE/FCNR account held in India also. However, no remittance from India by the resident add-on cardholder will be permitted for settlement of claims against such additional /add-on credit cards.

(iv) EEFC facility will not be available to the recipients in respect of payments received from residents against ICCs.

(v) Residents in India are permitted to hold International Credit Cards arranged by overseas organisations provided liabilities arising out of use of such cards, in India and/or outside India, are met by the organisation arranging the card. Under any circumstances no remittance from India will be allowed to meet the liabilities arising out of use of such cards.