capital account transactions

HDFC Bank Warns Customers Against Using Cards for Overseas Capital Account Transactions

HDFC Bank has warned customers not to use credit, debit, or forex cards for international capital account transactions like buying stocks, floating companies, or owning properties abroad, stating such payments violate RBI's Overseas Investment Regulations, 2022. Many resident individuals have been unknowingly violating foreign exchange rules, with some attempting to dodge TCS or circumvent $250,000 annual LRS limits. Several individuals who used credit cards for Dubai property deposits have been questioned by the Enforcement Directorate.