Jul 28, 2023

Levy of Charges on Forex Prepaid Cards/Store Value Cards/Travel Cards

The RBI had, by way of Circular dated April 2, 2012, in relation to use of international debit cards / store value cards / charge cards / smart cards by resident Indians while on a visit outside India specified that authorised persons will redeem the unutilized balance outstanding in the cards immediately upon request by the resident Indians to whom the cards are issued subject to retention of transaction fees / service tax payable in India in Rupees. It had come to the knowledge of RBI that a few authorised persons were levying certain fees / charges, which are payable in India on such instruments, in foreign currency. The RBI has, by way of Circular dated May 9, 2023 clarified that fees / charges payable in India have to be denominated and settled in Rupees only.




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