Module: General Practice
Q61: Scenario: Mr. Sharma, a resident Indian, approaches "Fast Forex Ltd." (an AD Category-II licensee) to buy a Forex Prepaid Card of USD 2,000 for his upcoming holiday in Singapore. He also wants to pay for the card in cash (INR). What is the regulatory position?
✅ Correct Answer: B
1. Authority: AD Category-II entities are permitted to issue Forex Prepaid Cards (unlike simple FFMCs who often act as agents for banks, though some AD-IIs issue their own co-branded cards). 2. Cash Limit (The Rule): For the sale of foreign exchange (currency or cards), the aggregate value of cash (INR) accepted from a customer cannot exceed ₹50,000.
3. Application: Any amount beyond ₹50,000 must be paid via digital means (Cheque, DD, NEFT/RTGS, Credit/Debit Card). Since USD 2,000 is approx. ₹1.6 Lakhs (well above ₹50k), Mr.
Sharma cannot pay the full amount in cash.
3. Application: Any amount beyond ₹50,000 must be paid via digital means (Cheque, DD, NEFT/RTGS, Credit/Debit Card). Since USD 2,000 is approx. ₹1.6 Lakhs (well above ₹50k), Mr.
Sharma cannot pay the full amount in cash.