A.D.(M.A Series) Circular No.27 August 7, 1998RESERVE BANK OF INDIA
EXCHANGE CONTROL DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
To,
All Authorised Dealers in Foreign Exchange
Dear Sirs,
Use of International Credit Cards (ICCs)for import of software, etc. Authorised dealers have been permitted to allow use of International Credit Cards (ICCs) for certain specified purposes vide Annexure II to Chapter 8 of Exchange Control Manual (ECM). It has been decided to allow use of International Credit Cards for the following purposes.
(i) Import of software through InternetAuthorised dealers may allow reimbursement up to U.S.$ 15,000 per transaction to International Credit Card organisations towards advance for import of software through internet even before the software is downloaded. For this purpose, the software exporter/developer should designate a branch of an authorised dealer through whom such reimbursement would be provided and they should furnish to the designated branch immediately after utilising the credit card details of software proposed to be obtained through the internet and the charges to be paid to the overseas organisation for downloading of the software. After the software is downloaded, they should forward a declaration to the designated branch of authorised dealer having received the software for which payment was made through International Credit Card.
(ii) Payments for services obtained through Internet
a) Authorised dealers may allow remittances towards reimbursement to overseas International Credit Card issuing organisations towards fees for training or education of scientific/technical nature availed of by their ustomers through Internet on production of documentary evidence regarding the fees payable therefor to the overseas beneficiary.
b) Authorised dealers may also allow remittances towards payments for registration of internet domain name, hosting charges for websites/home pages overseas, on production of documentary evidence by the applicant in support of the charges payable to overseas organisation.
(iii) Use of International Credit Cards to softwareengineers going abroad on assignments
Authorised dealers may arrange to issue International Credit Cards to the software engineers going abroad on software assignments for their use during such assignments abroad subject to the condition that the reimbursement would be provided for from the accounts maintained abroad by the software engineer concerned. They should obtain a declaration from the engineer concerned that no remittance from India would be involved in respect of drawals against the credit cards held by him.
Amendments to the Exchange Control Manual will be advised separately. Meanwhile, authorised dealers may bring the contents of this circular to the notice of their concerned constituents.
3. The directions contained in this circular have been issued under Section 73(3) of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any contravention or non-observance thereof is subject to the penalties prescribed under the Act.
Yours faithfully,
KHIZER AHMED
Chief General Manager
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