Para 3.10.31 — MSO (Audit)
Original Rule Text
3.10.31 Public Sector Undertakings, autonomous or statutory bodies, etc. under the Central or State Governments requiring payments to be made outside India on their behalf through an Indian Mission will arrange to remit the amount in foreign exchange (or in Indian rupees in the case of countries to which such remittance is authorised) directly to the Mission concerned under intimation to the Controller of Accounts, Ministry of External Affairs, and Finance-II Section of the Ministry. In case of payments not exceeding Rs 5,000, the organisations concerned may, at their option, send a rupee draft equivalent to the likely expenditure in the designated foreign currency at the prevailing commercial rate of exchange to the Controller of Accounts, Ministry of External Affairs, duly supported by the foreign exchange sanction of the Ministry of Finance (Department of Economic Affairs). In the latter case, the payments will be made by the Missions on receipt of requests from the organisations duly supported by a duplicate copy of the receipt given by the Controller of Accounts, Ministry of External Affairs.
# D. Special classes of payments
What This Means
PSUs and autonomous bodies needing payments through missions other than London and Washington must remit funds in foreign exchange (or Indian rupees for eligible countries) directly to the concerned mission, informing the Controller of Accounts, MEA and MEA's Finance-II Section. For payments up to Rs 5,000, the organization may alternatively send a rupee draft at commercial exchange rates to the Controller of Accounts with DEA's forex sanction. In the latter case, payment is made after the mission receives the organization's request with the Controller's receipt copy.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1PSUs can remit foreign exchange directly to the mission concerned
- 2Must inform Controller of Accounts, MEA and Finance-II Section
- 3Indian rupee remittance allowed for countries with such authorization
- 4For payments up to Rs 5,000: rupee draft to Controller of Accounts is an option
- 5Rupee draft must be accompanied by DEA forex sanction
- 6Payment on receipt of request plus Controller's receipt copy
Practical Example
A state PSU needs to pay USD 3,000 to a consultant in Kenya through the Indian Embassy in Nairobi. Since the amount is under Rs 5,000 equivalent, the PSU has two options: either remit USD 3,000 directly to the Nairobi embassy (informing MEA and Controller of Accounts), or send a rupee draft to the Controller of Accounts with DEA's forex sanction and then request the embassy to pay upon showing the Controller's receipt.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is direct remittance in foreign exchange allowed for other missions but not for London/Washington?▼
Which countries allow Indian rupee remittance?▼
Why is the Rs 5,000 threshold significant?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.