Module: General Practice
Q95: Under Schedule I of the FEMA (Current Account Transactions) Rules, 2000, remittance for which of the following purposes is STRICTLY PROHIBITED (even under LRS)?
✅ Correct Answer: C
Option C is prohibited.
Concept Definition: Schedule I (Prohibited List). Structural Breakdown: Absolute Ban: You cannot send $1 for these items, even if you have $250k LRS limit left.
Lottery tickets/winnings.
Income from racing/riding.
Purchase of banned magazines.
Payment of commission on exports under Rupee State Credit Route. "Call Back Services" of telephones.
Reasoning: These are considered vices or non-essential drains on foreign exchange reserves.
Concept Definition: Schedule I (Prohibited List). Structural Breakdown: Absolute Ban: You cannot send $1 for these items, even if you have $250k LRS limit left.
Lottery tickets/winnings.
Income from racing/riding.
Purchase of banned magazines.
Payment of commission on exports under Rupee State Credit Route. "Call Back Services" of telephones.
Reasoning: These are considered vices or non-essential drains on foreign exchange reserves.