Module: General Practice
Q59: Which of the following transactions are permitted to be undertaken by an AD Category-II entity?
1. Remittance for overseas education fees.
2. Remittance for medical treatment abroad.
3. Remittance of tour operator costs to overseas agents.
4. Remittance of export earnings to an Indian exporter.
Select the correct code:
2. Remittance for medical treatment abroad.
3. Remittance of tour operator costs to overseas agents.
4. Remittance of export earnings to an Indian exporter.
Select the correct code:
✅ Correct Answer: B
1. Permitted (AD Category-II): AD-II entities are specifically authorized for "Specified Non-Trade Current Account Transactions" (Items 1, 2, 3). This includes: Education: Remitting fees to universities (Item 1). Medical: Remitting hospital bills (Item 2). Travel/Tour: Remitting payments to overseas hotels/agents by Indian tour operators (Item 3). 2. Prohibited (Item 4): Remittance of Export Earnings is a Trade transaction.
AD Category-II entities are explicitly prohibited from handling trade transactions (Export/Import realization). This requires an AD Category-I Bank.
AD Category-II entities are explicitly prohibited from handling trade transactions (Export/Import realization). This requires an AD Category-I Bank.