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RBI lifts curbs on supplementary NRI credit cards

The Reserve Bank of India has removed all restrictions on non-resident Indians nominating their relatives or other resident Indians as additional credit card holders against their own foreign currency accounts held overseas.

Any NRI can now have an additional credit card issued for a resident of India, payment for which can be made against his foreign currency account held abroad.

General permission to this effect is being issued by the RBI.

No remittances from India will be permitted for settlement of claims against the additional card.

The RBI release added, at present, the facility of international credit card is available to residents visiting foreign countries and they can utilise such cards up to their entitlement of foreign exchanges for foreign visits. The RBI has relaxed conditions for holding of international credit cards by residents.

All residents are now permitted to hold international credit cards which can be used by them not only to meet their travel expenditure in accordance with their entitlement but also other payments like subscribing for a foreign journal, as may be permissible under the exchange control regulations.

Residents are also free to use such cards for payments within India.

Reimbursements to card issuing establishments will have to be through authorised dealers as usual who will satisfy themselves that the remittances are in accordance with the exchange control regulations and are covered by powers delegated to them.

UNI