Module: General Practice
Q10: Under the Foreign Exchange Management (Current Account Transactions) Rules, 2000, transactions are categorized into three Schedules based on the nature of restrictions. Which Schedule lists transactions that are completely PROHIBITED?
✅ Correct Answer: A
The Three Schedules of Current Account Rules: Schedule I (Prohibited): Transactions where withdrawal of foreign exchange is strictly banned.
Examples: Remittance for lottery winnings, income from racing/riding, purchase of banned magazines, or commission on exports towards equity investment in JVs/WOS.
Schedule II (Government Route): Transactions requiring prior approval from the concerned Ministry/Department of the Government of India (e.g., Cultural Tours require Ministry of HRD approval). Schedule III (RBI/LRS Route): Transactions requiring RBI approval if they exceed specified limits (Liberalized Remittance Scheme falls under this for individuals).
Examples: Remittance for lottery winnings, income from racing/riding, purchase of banned magazines, or commission on exports towards equity investment in JVs/WOS.
Schedule II (Government Route): Transactions requiring prior approval from the concerned Ministry/Department of the Government of India (e.g., Cultural Tours require Ministry of HRD approval). Schedule III (RBI/LRS Route): Transactions requiring RBI approval if they exceed specified limits (Liberalized Remittance Scheme falls under this for individuals).