# Current Account Transactions — Schedule II: Prior Approval of Central Government Required
FEM (Current Account Transactions) Rules, 2000
Schedule II transactions are permitted only if the drawer obtains prior approval from the relevant Ministry of the Central Government before drawing foreign exchange.
## Table — Transaction vs. Approving Ministry
| Remittance/Drawal for | Approving Ministry |
|---|---|
| Cultural tours (e.g., sending a cultural troupe abroad, Indian artist performing on Diwali in USA, organising a cultural programme abroad) | Human Resources Development (Department of Education & Culture) |
| Prize money / sponsorship of sports activity abroad exceeding US$ 1,00,000 (by any person other than an international/national/state-level sports body) | Human Resources Development (Department of Youth Affairs & Sports) |
| Advertisement in foreign print media by the State Government and its PSUs exceeding US$ 10,000 (other than for promotion of tourism, foreign investment & international bidding) | Finance (Department of Economic Affairs) |
| Membership of P & I (Protection & Indemnity) Club | Finance (Insurance Division) |
| Hiring charges of transponders by TV channels | Information & Broadcasting |
| Hiring charges of transponders by internet service providers | Communication & IT |
| Freight of vessel chartered by a PSU | Surface Transport (Chartering Wing) |
| Import through ocean transport by a Government department or PSU on CIF basis (i.e., other than FOB and FAS basis) | Surface Transport (Chartering Wing) |
| Container detention charges exceeding the rate prescribed by Director General of Shipping | Surface Transport (Director General of Shipping) |
| Multi-modal transport operators making remittance to their agents abroad | Registration Certificate from Director General of Shipping |
## Memory Tips
- "Culture & Sports → HRD" — Both fall under HRD (different departments inside HRD).
- "Shipping/Freight → Surface Transport" — Anything to do with ocean freight, container detention, vessel chartering by PSUs.
- Two transponder cases: TV channels go to I&B, ISPs go to Communications & IT. Don't swap them.
- Advertisement abroad threshold: > US$ 10,000 needs approval — but only for SG and its PSUs and only if not for tourism/foreign investment/international bidding.
- Sports sponsorship threshold: > US$ 1,00,000 — and the rule excludes international/national/state-level sports bodies.
## Important Caveats
- Schedule II applies only when drawing foreign exchange.
- If remittance is made from a Resident Foreign Currency (RFC) account, no approval is needed (see Schedule III note).
- If remittance is made from an EEFC account, most Schedule II transactions are exempt — except membership of P & I Club (which still requires approval).