Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q44: Under the Foreign Exchange Management (Current Account Transactions) Rules, 2000, certain transactions are Prohibited (Schedule I). Remittance is NOT allowed for which of the following?

A
Payment of commission on exports under the Rupee State Credit Route.
B
Remittance for purchase of lottery tickets or sweepstakes.
C
Payment related to "Call Back Services" of telephones.
D
All of the above.
✅ Correct Answer: D
Schedule I of FEM (CAT) Rules lists transactions that are strictly prohibited.
No withdrawal of Forex is allowed for these.
The Prohibited List Includes: Remittance out of lottery winnings.
Remittance for purchase of lottery tickets, banned/proscribed magazines, football pools, sweepstakes.
Payment of commission on exports made towards equity investment in Joint Ventures/Wholly Owned Subsidiaries abroad.
Remittance of dividend by any company to which the requirement of dividend balancing is applicable.
Payment related to "Call Back Services" (telecom routing hacks). Interest income on funds held in Non-Resident Special Rupee (Account) Scheme.