Rule 4 of these Rules provides that no person can draw foreign exchange for the

Foreign Exchange Management (Current Account Transactions) Rules, 2000
The rules in this regard have been divided into three parts namely:
(i) Prohibition of drawal of foreign exchange; (ii) Drawal of foreign exchange with the prior approval of the Central Govern
ment;
(iii) Drawal of foreign exchange with the approval of the Reserve Bank of India. Rule 3 of the FEMA (Current Account Transactions) Rules, 2000 prohibits drawal of
foreign exchange by any person for the following purposes:
. Travel to Nepal or Bhutan.
. Remittance out of lottery winnings.
. Remittance of income from racing, riding, etc., or any other hobby.
. Remittance for purchase of lottery tickets, banned magazines, etc.
. Payment of commission on exports made towards equity investment in joint
ventures/wholly owned subsidiaries abroad of Indian companies.
. Payment of dividend by any company to which the requirement of dividend
balancing is applicable.
. Payment related to 'Call back services' of telephones (some overseas communication organisations offer 'call back services', i.e., where the receiver of call has to make payment). In such cases as per Indian Telegraph Rules, a subscriber has to make all payments in respect of call charges made or received by his telephone to telegraph authorities only. Hence, such remittance in respect of call back charges to overseas organisations is not permissible unless they are licensed/ authorised by the Department of Telecommunications. In view of this, the Rule prohibits drawal of foreign exchange for' call back services'.
. Remittance of interest on funds held in Non-Resident Special Rupees (NRSR)
Account Scheme.
Rule 4 of these Rules provides that no person can draw foreign exchange for the
following transactions without Government's prior approval.
(i) Cultural tours.
(ii) Remittance under technical collaboration arrangements where royalty
exceeds 5 per cent on local sales and 8 per cent on exports and lump sum
payment exceeding 2 million US Dollars.
(iii) Payment for securing insurance for health from a company abroad.
(iv) Remittance for membership of overseas protection and indemnity clubs
(P & I Clubs) by shipping companies.
(v) Multi-modal transport operators making remittance to their Agents abroad.
(vi) Remittance of container detention charges exceeding the rates prescribed by
Director General of Shipping:
Rule 5 provides that no person can draw foreign exchange for the following
transactions without the RBI's approval:
(i) Release of exchange exceeding US$10,OOOw.e.f.18.1l.2002 (earlier US $ 5,000) in a calendar year for one or more visits to any country (other than Nepal and Bhutan). Again, credit card limit on an international credit card shall not be covered under the ceiling of US $ 10,000 [ET 31.01.2003]