Ms. Smriti, an Indian national, recently won 41 lakh in an international online lottery. She now wishes to remit an equivalent of US $50,000 abroad…

CA Intermediate · Corporate and Other Laws · RTP · September 2025
Ms. Smriti, an Indian national, recently won 41 lakh in an international online lottery. She now wishes to remit an equivalent of US $50,000 abroad to a foreign account using her lottery winnings. She approached her authorized dealer bank to request foreign exchange for this purpose. As per the provisions of the Foreign Exchange Management Act, 1999 and the relevant Rules, what is the correct position regarding Ms. Smriti's request to remit foreign exchange out of her lottery winnings?
(A) The remittance is allowed under the Liberalised Remittance Scheme (LRS) without any approval.
(B) The remittance is allowed only with prior approval of the Reserve Bank of India.
(C) The remittance is allowed only with prior approval of the Central Government.
(D) The remittance is prohibited, as it falls under the First Schedule to the FEM (Current Account Transactions) Rules, 2000.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

The remittance is prohibited, as it falls under the First Schedule to the FEM (Current Account Transactions) Rules, 2000.

Topics: The Foreign Exchange Management Act, 1999

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