# Schedule II — Transactions Requiring Central Government Approval

Schedule II lists current account transactions that can be undertaken only with the prior approval of the concerned Ministry/Department of the Central Government.

## The Schedule II list

#	Transaction	Threshold / Exception
1	Remittance for cultural tours / troupes	All such payments need CG approval
2	Advertisement in foreign print media	Approval needed if > US $10,000; except for tourism promotion, international bidding, foreign investment
3	Remittance of freight of vessel chartered by a PSU	All
4	Remittance for import via ocean transport by Govt./PSU on CIF basis (not FOB/FAS)	All
5	Container detention charges exceeding rate set by Director General of Shipping	Above DG rate
6	Remittance by Multimodal Transport Operator to its agent abroad	All
7	Remittance for prize money / sponsorship of sports activities abroad	> US $100,000, by persons OTHER than International/National/State sports bodies
8	Remittance for membership of P&I Club	All
9	Remittance to transponders by TV channels / Internet service providers	All

## Key carve-outs

### Advertisement in foreign print media (#2)

Approval required only if value > US $10,000. Even then, no approval if the ad is for:

Promotion of tourism
Foreign investment
International bidding

### Sports prize money / sponsorship (#7)

Approval required only if:

Amount > US $100,000, AND
Remitter is NOT an International/National/State sports body.

## RFC Account note

> If payment is made out of an RFC account, the Schedule II approval is not required. RFC funds already represent legitimately earned forex.

Worked example

### Example 1

Example 1 — Tourism ad in foreign magazine

Incredible India Campaign pays US $50,000 for a tourism ad in a New York magazine.

Answer: Within tourism promotion carve-out → no CG approval required despite exceeding US $10,000.

### Example 2

Example 2 — Cultural troupe abroad

A classical music group is invited to perform in Europe.

Answer: Sch. II #1 → CG approval required.

### Example 3

Example 3 — Sports sponsorship by private company

XYZ Ltd sponsors an Indian athlete in Tokyo with US $1,50,000.

Answer: > US $100,000 and not a recognised sports body → CG approval required.

### Example 4

Example 4 — Same payment from RFC

If the cultural troupe payment is made from an RFC account.

Answer: No CG approval — RFC payments are outside Schedule II's approval requirement.

⚠️ Common exam mistakes

Forgetting the US $10,000 threshold for foreign-print-media advertisements.
Forgetting the tourism / international bidding / foreign investment exception for ads.
Applying CG approval to State/National sports bodies — they are exempt.
Missing the RFC account exemption for Schedule II items.

Bare-Act text Schedule II (Rule 4) · Foreign Exchange Management (Current Account Transactions) Rules, 2000 · click to expand

Prior approval of the Government of India is required for the following transactions: cultural tours; advertisement in foreign print media exceeding US $10,000 by State Governments and PSUs (with exceptions for promotion of tourism, foreign investments and international bidding); remittance of freight of vessel chartered by PSU; payment of import by Government Department or PSU on CIF basis; multi-modal transport operators making remittance to agents abroad; remittance of container detention charges exceeding rate prescribed by Director General of Shipping; remittance of prize money/sponsorship of sports activity abroad exceeding US $100,000 by persons other than International/National/State level sports bodies; remittance for membership of P&I Club; remittance to a transponder by TV channels/Internet service providers.

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Schedule II — Central Government Approval

Worked example

⚠️ Common exam mistakes