What changed
Earlier, under A.P. (DIR Series) Circular No. 46 dated June 14, 2005, banks had to submit a statement as on December 31 each year if aggregate forex utilization by International Debit Card holders exceeded USD 100,000 in a calendar year. Now, RBI has discontinued this submission requirement from the calendar year 2010 onwards. All other instructions from the 2005 circular remain unchanged.
What it means for you
Banks no longer need to track and report high-value forex card usage by resident Indians traveling abroad, saving compliance time and resources. However, the underlying FEMA limits and other obligations under the 2005 circular still apply, so banks must continue to monitor transactions for adherence to forex rules. This is a procedural simplification, not a relaxation of forex controls.
What you must do
- Stop preparing and submitting the annual statement on international card forex usage exceeding USD 100,000 per cardholder from calendar year 2010 onwards.
- Retain all other compliance requirements under A.P. (DIR Series) Circular No. 46 dated June 14, 2005, including monitoring of forex usage limits.
- Update internal compliance checklists and reporting systems to reflect this discontinued submission.
- Inform relevant branches and forex dealing teams about the change to avoid unnecessary data collection.
Who it affects
All Authorised Dealer (AD) banks handling foreign exchange, Compliance and forex operations teams in banks
Does this mean there is no limit on forex usage via international cards?
No. The circular only discontinues the reporting requirement. The underlying FEMA limits and other instructions from the 2005 circular remain in force. Banks must still ensure cardholders comply with forex rules.
From when is this reporting discontinued?
The submission of the annual statement is discontinued from the calendar year 2010 onwards. Banks should not submit the statement for 2010 or any subsequent year.
Do we need to keep records of high-value forex card usage?
The circular does not explicitly remove record-keeping obligations. Since other instructions of the 2005 circular remain, banks should continue to maintain records as per standard FEMA compliance practices.