What are the prohibited items under the Scheme? - FEMA - FAQ - FEMA

Ans. The remittance facility under the Scheme is not available for the following: (i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000. (ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty. (iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market. (iv) Remittance for trading in foreign exchange abroad. (v) Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as non- cooperative countries and territories , from time to time. (vi) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks. (vii) Gifting by a resident to another resident, in foreign currency, for the credit of the latter s foreign currency account held abroad under LRS.