Expenditure in Indian currency deemed foreign exchange when derived from converted foreign exchange and certified at payment. Rule 4 deems expenditures paid in Indian currency, obtained by conversion of foreign exchange, to have been incurred in foreign exchange when: (i) a travel agent converts foreign exchange through an authorised dealer to pay hotel expenses on behalf of foreign tourists; (ii) an airline makes such payments and furnishes Form No. 1 to the hotel; and (iii) nationals of specified countries pay hotel expenses and furnish Form No. 2. The Explanation defines 'airline,' 'travel agent' and 'authorised dealer' by reference to licensing and definitions in the Foreign Exchange Regulation Act, 1973.