RBI's ban on using credit/debit card for online Foreign Exchange transaction

sanj

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Aug 26, 2010
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Gurgaon.
Hi Friends,

As you may be aware that trading in foreign exchange (including through electronic/internet trading portals) is prohibited
under the Foreign Exchange Management Act (FEMA), 1999. Further, the Reserve Bank of India (RBI) has clarified
many a time that remittance in any form towards overseas foreign exchange trading (including through
electronic/internet trading portals or by use of credit/debit cards) is not permitted. RBI has cautioned the public not to
remit or deposit money or utilize credit/debit cards for such unauthorised transactions. The advice has become
necessary in the wake of many unauthorized transactions being conducted by residents that have been reported to RBI.

Accordingly, please take note of the prohibitions on using your credit/debit card for such unauthorized transactions in
contravention to the FEMA & regulations thereunder and that violation(s), if any, would attract penalties or as RBI or the
Enforcement Directorate may initiate against such residents.

So considering it i want to know now onward how can one buy online for foreign goods.

Regards
sanjay.
 
Friend of mine bought a watch (~$320 after TAX) from Amazon US using his Credit Card last week, didn't have any problem.
 
If it is banned the banking sites will not allow the transactions. I never had any problems in using Indian credit or debit cards for online purchases in US $.

I think there is only a limit on yearly foreign exchange spend which is set very high so never bothered to keep tab.
 
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