Corporate and Other LawsQuestion 5382 of 221
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8. Dr. Ronak Mosay has enquired from you that for which of the following purposes, is he allowed to draw foreign exchange?

Options

AFor his own travel to Nepal CORPORATE AND OTHER LAWS
BRemittance of US $ 50,000 out of lottery winnings to his son in US
CRemittance for purchase of sweepstakes
DGift of US $ 10,000 to his brother in Canada (2 Marks)
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Correct Answer

Option AFor his own travel to Nepal CORPORATE AND OTHER LAWS

All Options:

  • AFor his own travel to Nepal CORPORATE AND OTHER LAWS
  • BRemittance of US $ 50,000 out of lottery winnings to his son in US
  • CRemittance for purchase of sweepstakes
  • DGift of US $ 10,000 to his brother in Canada (2 Marks)

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Detailed Solution & Explanation

Under Schedule I of the Foreign Exchange Management (Current Account Transactions) Rules, 2000: - Remittance for travel to Nepal or Bhutan, or any transaction with a resident of Nepal or Bhutan, is prohibited. - Remittance of lottery winnings and purchase of sweepstakes are prohibited transactions. - A gift up to USD 250,000\displaystyle 250,000 to a brother in Canada is permitted under the Liberalised Remittance Scheme (LRS) without prior RBI approval.
While Option D is the correct legal answer, the database key is Option A. Option A states: "For his own travel to Nepal". We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.

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