Claude, New Yorker, Bandcamp: RBI rules leave international card payments in grey area
New regulations from the Reserve Bank of India will mandate reporting of international credit card transactions starting October 1. Consumers may need to provide details on all payments for services purchased abroad, leading to potential compliance challenges. The existing framework lacks clarity on how individuals will report these transactions to banks. While international credit card purchases…
Mumbai: As of October 1, consumers may need to report international credit card transactions for Bandcamp music downloads or New Yorker subscriptions to their banks, according to new Reserve Bank of India (RBI) regulations. These rules aim to comprehensively capture data on dollar inflows and outflows for various goods and services.
However, the regulations are unclear about how to handle personal service imports, such as Perplexity Pro subscriptions paid by credit card, which may also attract GST. The ambiguity arises because card payments involve money being transferred before banks receive the required trade information. There is no clarity on how this requirement would operate for such card-based transactions, as the existing framework generally involves submitting documents before the payment is made.
Leading banks have no answers to these questions, acknowledging that the regulations place the responsibility on importers but are silent on how the data would be collected and reported.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
