RBI liberalises third party payment norms for export/import

Tags: News
The Reserve Bank today liberalised the third party payment norms for import of goods by removing the ceiling of USD 100,000.

Earlier, the amount of an import transaction for third party payment should not have exceed USD 100,000.

The central bank also simplified certain documentation norms related with third party payments for export and import transactions.

"... With a view to liberalising the procedure, the limit of USD 100,000 eligible for third party payment for import of goods, stands withdrawn," the RBI said in a notification.

The RBI further said the condition "firm irrevocable order backed by a tripartite agreement should be in place" for overseas transactions may not be insisted upon in certain cases by banks.

This has been done in view of the difficulties faced by exporters and importers, it said.

Third party payment could be made to a Financial Action Task Force (FATF) compliant country and through the banking channel only.

RBI said the bank concerned should be satisfied with the bona-fides of the transaction and export documents, such as, invoice and they should consider the FATF statements while handling such transaction.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • E-auction and eventual privatisation of coal industry are welcome steps

    The government’s decision to privatise the scam-ridden coal industry through a presidential ordinance will eventually end the monopoly of public sec

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Rajgopal Nidamboor

Synchronous balance is vital for one and all

Imagine that you are playing an electronic game, or actually ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture