Regulation 3 - Prohibition on borrowing and lending in rupees - Foreign Exchange Management (Borrowing And Lending In Rupees) Regulations, 2000

3. Prohibition on borrowing and lending in rupees:- Save as otherwise provided in the Act, rules or regulations made thereunder, no person resident in India shall borrow in rupees from, or lend in rupees to, a person resident outside India. Provided that the Reserve Bank may, for sufficient reasons, permit a person resident in India to borrow in rupees from, or lend in rupees to, a person resident outside India. Explanation: For the removal of doubt, it is clarified that use of Credit Card in India by a person resident outside India shall not be deemed as borrowing or lending in rupees.