The permission is tied to the event and specified flows
Organisers of international seminars, conferences and conventions can use a temporary foreign-currency account in India under the specific RBI framework. It is not an unrestricted foreign-currency operating account. Paragraph 3.8 lists the permitted credits and debits, requires prior RBI approval for other flows, and requires closure immediately after the conference or event is over.
This article addresses RBI Master Direction on Deposits and Accounts, Part I, paragraph 3.8, checked on 23 October 2026. It concerns an account in India for an international event, rather than an overseas trade-fair collection account, an EEFC account or an individual’s travel account. Establish the correct banking permission before opening or using the account.
Build a source register for overseas receipts
The direction identifies inward foreign-currency remittances from abroad connected with the event: overseas delegate registration fees, grants, sponsorship fees and donations. Retain the payer, country, currency, bank advice, event reference and contractual or registration purpose. A sponsor’s general relationship with the organiser does not by itself prove that a receipt belongs to this event.
Do not assume that domestic collections, unrelated project income, loans or another event’s money belong in the account merely because they are denominated in foreign currency. For a credit outside the listed permission, the direction requires prior RBI approval. A bank’s ability to receive a remittance technically is not equivalent to legal eligibility for the particular account.
Map each proposed debit to the listed permission
| Flow | Paragraph 3.8 route | Supporting record |
|---|---|---|
| Foreign/special invitee costs and foreign guest-speaker honoraria | Specified travel, hotel and related event payments | Specific invitation, attendance/purpose and bill/contract |
| Registration or unused sponsorship/grant refund | Listed remittance/refund category | Original receipt, refund basis and beneficiary match |
| Bank charges | Expressly listed debit | Bank advice and account reconciliation |
| Conversion into rupees | Expressly listed debit | Conversion instruction and rupee-credit evidence |
The invited-person category needs the specific invitation and connection to attendance at the event; it does not make every foreign vendor invoice an invited-speaker payment. Similarly, a refund should reconcile to the original event receipt and the contractual or registration reason. Do not disguise an unrelated remittance as an honorarium or refund to fit the bank template.
Other credits and debits need prior Reserve Bank approval under the stated framework. Prepare the purpose, parties and proposed flow for the authorised dealer’s review before execution. Where legitimate event expenditure is to be met after a permitted rupee conversion, document the conversion and the separate rupee transaction correctly; this does not remove any independently applicable payment, tax or other legal requirement.
Keep currency units and restricted entitlements separate
An event can collect in several currencies, but USD and EUR are not additive units. Maintain each foreign-currency ledger and reconcile the bank’s actual conversion rates, charges and value dates. A rupee budget is useful for management, but an assumed budget rate must not replace bank evidence or the accounting standard applicable to exchange differences.
Also distinguish cash available from money the organiser is free to retain. A restricted grant, refundable delegate fee or unused sponsorship balance may have contractual obligations. The banking permission permits specified flows; it does not decide revenue recognition, ownership of a surplus or whether a donor’s terms have been satisfied.
“Immediately after the event” is a closure control, not a holding window
Paragraph 3.8 does not give this account the one-month closing rule used for a different overseas trade-fair permission. Plan collections, approved payments, refunds, conversions and bank instructions before the event ends. Do not keep the temporary account running indefinitely for another edition of the conference or invent a general thirty-day grace period.
If a genuine dispute or unexpected post-event receipt prevents the planned process, raise the actual facts with the authorised dealer promptly and obtain the appropriate regulatory treatment. Do not backdate closure or describe an outstanding foreign-currency balance as closed merely because the internal event ledger was archived.
The account permission is separate from taxation, foreign-contribution regulation and other permissions that may apply to an organiser or receipt. The examples below assume those independent requirements are satisfied where relevant; they compute event-account flows, not GST, withholding tax or donor-law eligibility. All conversion rates are hypothetical arithmetic inputs, without bank fees except where stated.
Worked illustrations
These illustrations use fictional facts and expressly stated assumptions. Amounts are Indian rupees unless a different currency or unit is specified. They are independent examples, not findings about any actual client.
Illustrative example 1: Overseas delegate-fee control
An international conference has 100 overseas delegates each remitting USD 200 from abroad for registration. Eligible event-fee receipts under the stated assumptions total USD 20,000. A register should still match all 100 delegates and remittances; the aggregate credit alone does not prove each payment’s purpose.
Illustrative example 2: Invited-speaker payments and the remaining grant
An eligible event grant of USD 30,000 is received. Supported listed payments for specifically invited foreign guest speakers comprise USD 4,500 honoraria and USD 2,500 travel. Total debit is USD 7,000 and the remaining cash is USD 23,000. That balance is not automatically unrestricted income; reconcile remaining event costs and grant/refund obligations.
Illustrative example 3: Refund a cancelled registration
An overseas delegate originally paid USD 1,500. The documented cancellation terms require a USD 1,200 refund and permit USD 300 to be retained. The original receipt is reconciled as USD 1,200 refunded plus USD 300 retained. Whether the retained amount is taxable or earned revenue is outside this banking-flow arithmetic.
Illustrative example 4: Close with an exact currency reconciliation
Assume eligible credits of USD 40,000, supported invitee payments USD 7,000, delegate refunds USD 2,000 and bank charges USD 100. Remaining currency is USD 30,900. Conversion of that amount at an assumed ₹85/USD gives ₹26,26,500 and leaves zero foreign-currency balance. Obtain the bank’s actual closure confirmation; zero balance alone is not proof of account closure.
Illustrative example 5: Reconcile two currencies separately
Balances of USD 12,000 and EUR 4,000 are to be converted under the permitted route. At assumed rates ₹85/USD and ₹93/EUR, the rupee credits are ₹10,20,000 and ₹3,72,000, total ₹13,92,000. Do not record “16,000 forex units” or apply the USD rate to the EUR balance.
Illustrative example 6: A proposed debit outside the list is not booked as an approved payment
The account holds USD 8,000. A proposed USD 3,000 payment to an unrelated foreign software vendor does not fall within the listed invitee, refund, bank-charge or conversion categories on the stated facts. Without the required prior approval, it is not treated as an executed permitted debit. The controlled bank balance remains USD 8,000, rather than the projected USD 5,000. A valid separate route must be established before payment.
Ten-step verification table
| Step | Verification | Evidence to retain |
|---|---|---|
| 1 | Confirm the event and account permission | International-event programme, organiser identity and bank opening record |
| 2 | Identify the permitted source of every foreign credit | Overseas payer, registration/grant agreement and remittance advice |
| 3 | Separate unrelated or non-listed proposed credits | Exception schedule and prior-approval assessment |
| 4 | Verify specific invitations and eligible event payments | Invitation, recipient, attendance and supporting invoices |
| 5 | Trace refunds to the original event receipts | Cancellation/grant terms and beneficiary reconciliation |
| 6 | Screen all other proposed debits before execution | Purpose classification and any prior RBI approval |
| 7 | Maintain currency-wise cash and commitment controls | Separate currency ledgers, bank charges and obligation schedule |
| 8 | Plan end-of-event refunds and rupee conversion | Settlement timetable, bank instructions and actual conversion advice |
| 9 | Close immediately after the event and retain proof | Account closure confirmation and final statements |
| 10 | Reconcile the final accounts and independent obligations | Receipt/payment bridge, surplus ownership and separate tax/regulatory conclusions |
Sixteen practitioner FAQs
1. Is this the same permission as an overseas trade-fair account?
No. Paragraph 3.8 concerns temporary foreign-currency accounts in India for international events. Do not import a different account’s sources or closure period.
2. Can registration fees from overseas delegates be credited?
They are a listed source when received as inward foreign-currency remittances from abroad in connection with the event. Match the payer and registration purpose.
3. Are event sponsorships and grants identified sources?
Yes, within the direction’s event-connected overseas-remittance terms. Retain the agreement and source trail instead of treating every sponsor payment as interchangeable.
4. Can unrelated project receipts be parked in the account?
Not under the listed event permission merely because they are foreign currency. Other credits require the prior-approval treatment specified by the direction.
5. Does domestic collection become eligible when quoted in dollars?
Currency denomination alone is insufficient. Examine the actual source and listed inward-remittance conditions with the authorised dealer before crediting it.
6. What supports a foreign-speaker honorarium?
Keep the specific invitation, event connection, recipient identity and honorarium terms. A generic foreign-vendor invoice does not establish invited-speaker status.
7. Can travel and hotel costs be paid under the listed category?
The direction identifies such payments for the specified foreign/special invitees attending on the organisers’ specific invitation. Document the person and connection to attendance.
8. Can a cancelled delegate registration be refunded?
Refunds of registration fees to foreign delegates are listed. Reconcile the original payment, cancellation basis, amount and beneficiary.
9. What about unused sponsorship or grant money?
The direction identifies remittance of unutilised sponsorship/grant amounts. Contractual terms and actual unused amounts should support the refund computation.
10. Are bank charges permitted debits?
They are expressly listed. Retain the actual advice and avoid hiding unrelated charges within a broad “bank expenses” figure.
11. Can funds be converted to rupees?
Conversion is an expressly listed debit. Reconcile the bank’s actual exchange rate, charges and destination rupee credit.
12. Is every genuine conference expense a permitted forex debit?
No. A valid commercial purpose does not expand the enumerated account permission. Other debits need prior RBI approval under paragraph 3.8.
13. Does the account have a general thirty-day post-event window?
No such grace period is stated for this permission. It requires closure immediately after the event; plan settlement and bank instructions accordingly.
14. Does a zero balance prove closure?
No. Obtain the bank’s closure confirmation and final statement. An open empty account and a closed account are different states.
15. Does the account permission resolve grant revenue and GST?
No. Banking permission, ownership/recognition of grant money, tax and other regulatory obligations must be evaluated separately on their facts.
16. What should be done about an unexpected post-event issue?
Give the authorised dealer the actual facts promptly and obtain the appropriate treatment. Do not invent an extension, backdate closure or reuse the account for another event.
Working-paper organisation
Keep the source documents, calculation and final conclusion together for the same entity and period. If using assurePractice or other assureOffice tools, use only confirmed available functions and retain this evidence with the output.
Conclusion
Treat the temporary account as an event-specific permission. Match every source and payment to its permitted category, retain currency-wise evidence and arrange settlement and closure around the event’s actual end.