Regulation 3 - Prohibition to Borrow or Lend

Prohibition on cross border borrowing and lending: residents barred unless regulatory permission allows exceptions under law.

A resident of India is generally prohibited from borrowing or lending in foreign exchange with any person, whether resident in India or abroad, and from borrowing in rupees from or lending in rupees to a person resident outside India, subject to exceptions in the Act, rules or regulations and to regulatory permission; credit card use by a non resident in India or by a resident outside India is not deemed borrowing or lending.