Attention of the Authorized Dealers (ADs) is invited to chapter 19 of Guidelines for Foreign Exchange Transactions, Vol-1 (2009 Edition), FEPD CIRCULAR NO. 11 DATED 14.07.2011 and FEPD CIRCULAR NO. 14 DATED 26.12.2012 permitting use of ICCs for travel related payments abroad, online payment of fees, online hotel booking etc.
- It has been decided that ADs may allow their cardholder customers to use ICCs for online payment not exceeding USD 100.00 (US Dollar one hundred) or its equivalent at a single transaction against legitimate purchases of items of goods and services (such as downloadable application software, e-books etc.) from reputed and reliable sources abroad. Online payments for such purchases shall be limited to the available unused annual travel quotas of the ICC holders plus an additional amount not exceeding USD 1,000.00 (US Dollar one thousand) annually.
- It will be the responsibility of ICC holders using the online purchase option to fulfill tax/duty payment obligations if any; they should also undertake such transactions with due caution against risks being defrauded by unreliable unscrupulous vendors.
Please bring the contents of this circular to the notice of all concerned.