# Schedule II - CUAT Requiring Prior CG Approval

Drawal of forex for the following Current Account Transactions requires prior approval of the Central Government (specifically, the relevant Ministry).

## List of Schedule II Transactions and Approving Ministry

### 1. Cultural Tours

Approving Authority: Ministry of Human Resource Development (HRD), Department of Education

### 2. Advertisement in Foreign Print Media by State Govt/PSU (above USD 10,000)

Approving Authority: Ministry of Finance, Department of Economic Affairs
Exceptions (no approval needed) - advertisements for:
T - Promotion of Tourism
I - Promotion of Foreign Investment
B - International Bidding

### 3. Freight of Vessel Chartered by PSU

Approving Authority: Ministry of Surface Transport, Chartering Wing

### 4. Payment of Import Through Ocean Transport by Government Department/PSU on CIF Basis (not FOB)

Approving Authority: Ministry of Surface Transport, Chartering Wing

### 5. Multimodal Transport Operator's Remittance to Overseas Agent

Approving Authority: Registration Certificate from Director General of Shipping (DGS)
Example: Blue Dart

### 6. Remittance of Hiring Charges of Transponders

Type	Approving Ministry
TV Channels	Ministry of Information & Broadcasting (I&B)
Internet Service Providers	Ministry of Communication & Information Technology (IT)

### 7. Container Detention Charges (above rates prescribed by DGS)

Approving Authority: Ministry of Surface Transport

### 8. Remittance of Prize Money / Sponsorship of Sports Activity Abroad (above USD 100,000)

Approving Authority: Ministry of HRD, Department of Youth Affairs and Sports
Exception: International sports bodies are excluded from this approval requirement.

## Quick Ministry Map

Subject	Ministry
Cultural tours, Sports remittances	HRD (Education / Youth Affairs)
Advt in foreign print media (>USD 10,000)	Finance (Eco Affairs)
Vessel charter / Import CIF / Container detention	Surface Transport
Transponder for TV channels	I&B
Transponder for ISPs	Communication & IT
Multimodal transport - overseas agent	DGS Registration

Worked example

### Example 1

Example 1: A State PSU wants to advertise in The Wall Street Journal (foreign print) for USD 15,000 to promote a general PSU project. Approval: Needed from Ministry of Finance, Dept of Economic Affairs (exceeds USD 10,000 and not in TIB exceptions).

### Example 2

Example 2: Same PSU advertises in foreign print to attract Foreign Direct Investment for USD 50,000. Approval: Not needed - falls under Foreign Investment exception.

### Example 3

Example 3: A PSU charters a foreign vessel for cargo transport. Approval: Required from Ministry of Surface Transport, Chartering Wing.

### Example 4

Example 4: Blue Dart (multimodal operator) needs to remit USD 50,000 to its overseas agent. Approval: DGS registration certificate is required.

### Example 5

Example 5: Indian TV channel hires a transponder from abroad. Approval: Ministry of Information & Broadcasting.

### Example 6

Example 6: Indian sports federation sponsors a player's tournament abroad - sponsorship of USD 1,50,000. Approval: Ministry of HRD, Dept of Youth Affairs & Sports (exceeds USD 1,00,000 and not an international body).

### Example 7

Example 7: Same sponsorship but from an International Olympic body. Approval: Not required - falls under international exception.

⚠️ Common exam mistakes

Confusing TV transponders (I&B Ministry) with ISP transponders (Communications/IT Ministry).
Forgetting the 'TIB' exception for foreign print media advertising - Tourism, foreign Investment, international Bidding.
Applying Schedule II approval thresholds incorrectly - USD 10,000 for advt; USD 1,00,000 for sports sponsorship.
Confusing 'CIF' (covered) with 'FOB' (not covered) for imports by Govt Dept/PSU via ocean.
Treating multimodal transport agent remittance as freely permitted - DGS registration is mandatory.
Forgetting that container detention charges only need approval when rates EXCEED DGS-prescribed rates.
Confusing 'cultural tours' (HRD-Education) with sports activities (HRD-Youth Affairs).

Bare-Act text Rule 4 read with Schedule II · FEM (Current Account Transactions) Rules, 2000 · click to expand

No drawal of foreign exchange shall be made for transactions specified in Schedule II without prior approval of the Government of India (relevant Ministry/Department).

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Schedule II - CUAT Requiring Prior Approval of Central Government

Worked example

⚠️ Common exam mistakes