Current account transactions - prohibition

Others 890 views 3 replies

Hi All

With reference to

FEMA, Current Account Transactions, Rules 2000.


Any idea why are transactions referred under Rule 3 read with schedule I are actually prohibited.

Eg : Why is withdrawl of forex for payment to Nepal/Bhutan prohibited??

Similarly can u help me with the meaning of the rest of the transactions and the reasons for their prohibition/approval from CG or RBI.

Replies (3)

In Law there is no logic for anything generally ., still ..........................

Practically as per norms & terms of Indian Govt. With Nepal/Bhutan Indian currency is workable in those countries therefore there is no need for foreign currency. 

In Rule 3 Schedule I there is generaaly prohibition on use of foreign currency except "lottery income" it is probition on source of income.

Hmmm... I dont think so coz there is always a logic behind a law being made. Just couldnt find it on google..

 

Anyways thankx for your reply.


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