📝 One-liners · 66 cards
Internet & Web Services, Cards and PPIs
What category of scheme does the RBI treat a foreign website that promises residents earnings in foreign currency for adding more customers to a chain?
Such schemes are treated as money circulation type arrangements, and AD banks must not allow remittances to their operators.
Are Rule 5 restrictions of FEMA Current Account Transactions Rules 2000 applicable to International Credit Card use by residents while visiting abroad?
No, Rule 5 restrictions are not applicable to ICC use abroad.
When a resident approaches an AD bank to remit funds to an overseas operator of a chain-based earning scheme, what must the bank do?
The bank must refuse the remittance because chain/earn-in-forex website schemes are classified as money circulation type arrangements, which are prohibited.
Who fixes the credit limit for International Credit Card use on the internet when RBI prescribes no separate aggregate ceiling?
The credit limit is fixed by the card-issuing bank.
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