Remittances on account of Consolidated Tour Arrangements for Foreign Tourists Visiting Neighbouring Countries
(i) Travel agents are not permitted to incur any expenditure in India on behalf of foreign tourists arriving in India through their agency unless they have received advance remittance or have made arrangements to obtain reimbursement through an authorised dealer in an approved manner. In respect of consolidated tours arranged by travel agents for foreign tourists visiting India and neighbouring countries like Nepal, Bangladesh, Sri Lanka, etc. part of the foreign exchange received in India against such consolidated tour arrangements will have to be remitted from India to those countries for services rendered by travel agents and hoteliers in the neighbouring countries. Travel agents may apply to authorised dealers for such remittances on form A2 together with a statement in form CTA duly supported by documents mentioned therein. Authorised dealers should verify the following:
(a) Supporting debit notes/bills/invoices (in original) from the hotel/travel agent in the foreign country and the bank certificates relate to the same tourist group or family to which the statement relates.
(b) The neighbouring countries share of tourism earnings appears prima facie reasonable on the basis of the duration of stay in the respective countries.
(c) Amount repatriated is supported by bank certificates (in original) confirming the receipt of foreign exchange in an approved manner (If the currency of remittance was rupees, the rupees should not have been derived from the non-convertible source).
(d) If the full amount of the tour price has not been repatriated,
(1) reasons therefor have been furnished and the undertaking on the form for repatriation of the balance has been completed;
(2) at least 90 per cent of the tour price has been repatriated;
and
(3) amount to be remitted to the neighbouring country (inclusive of remittances, if any, already made against the tour) does not exceed the amount actually repatriated to India.
(e) Country of residence of beneficiary is not Pakistan.
If the application for remittance satisfies the above requirements, authorised dealer may make the remittance and report it to Reserve Bank under the relative R Return, enclosing a copy of form CTA (after countersigning it) with the covering form A2. The supporting bank certificates should be retained by authorised dealer after noting therein the remittance made for future reference in case of need.
(ii) In all cases where the undertaking to repatriate the balance amount of tour price has been completed by the travel agent, authorised dealers should watch the submission of further bank certificates for the outstanding amount within the time limit of three months. If any part of the balance amount cannot be repatriated due to reduction in tour price, disputes, etc. authorised dealer should verify appropriate documentary evidence such as correspondence between travel agent and the overseas tour operator, final settlement of account, etc. and satisfy himself that the tour account stood closed and no further amount was due to be repatriated.
(iii) Authorised dealers should promptly bring to the notice of Reserve Bank any cases where travel agents have not repatriated outstanding balances even after the expiry of the period of three months.
NOTE: Authorised dealers should permit remittances in terms of this paragraph only if the bank certificates show that the foreign exchange has been realised in India; in other words, in cases where the tour price has been settled by overseas tour operators by means of drafts drawn on banks outside India, the instruments should have been collected and proceeds realised before remittances to neighbouring countries can be permitted. As an exception to this rule, authorised dealers may permit remittances to Nepal even in advance of their realisation, provided the drawers/drawees of the drafts are well known banks and the drafts have been sent for collection through the medium of the same authorised dealers. The remittance to Nepal in such cases should be made by draft/mail transfer/TT drawn in favour of the Nepal Rastra Bank for account of the beneficiary. If in any case after remittance of the dues to Nepal, the payment on the draft is not realised, it should be reported promptly to Reserve Bank.
(iv) Applications not satisfying the requirements laid down in above paragraph (illustratively, cases where tour price has been settled through MCOs issued by airline companies, both Indian and foreign, and cases where less than 90 per cent of the price has been realised) as also all remittances to Pakistan will require specific approval of Reserve