## Exceptions to Schedule II / III Restrictions
The normal approval requirements under Schedules I, II and III do NOT apply when forex is drawn from certain sources or by certain means. The three principal exceptions are:
### 1. RFC Account (Resident Foreign Currency)
### 2. EEFC Account (Exchange Earners' Foreign Currency)
### 3. International Credit Card (ICC)
### Comparative Table of Exceptions
| Schedule | Normal Position | Exception when paid from RFC | Exception when paid from EEFC | Exception when using ICC for visit abroad |
|---|---|---|---|---|
| Schedule I (prohibited transactions) | Strictly prohibited | No exception – still prohibited | No exception – still prohibited | No exception – still prohibited |
| Schedule II (Ministry approval) | Prior Govt approval needed | Approval not required | Approval not required, except for membership of P&I Club | Approval not required, can incur expenses during visit abroad |
| Schedule III (RBI approval beyond limits) | RBI approval if limit exceeded | Approval not required | Approval not required, except for: (a) commission to agents abroad on sale of immovable property, (b) reimbursement of pre-incorporation expenses | Approval not required for sch III items used during visit abroad |
### Key Takeaways
- Schedule I is absolute – no source of funds can override the prohibition.
- RFC offers the broadest exemption – approval relaxed for all Sch II and Sch III items.
- EEFC has two carve-outs (P&I Club membership; real-estate commission & pre-incorporation expenses).
- International Credit Card exemption is tied to expenses incurred during a visit abroad.