The Reserve Bank of India (RBI) has issued a circular to authorised dealer Category-1 banks to accept rupee deposits of visa fees collected in India for transfer to their foreign currency accounts.
"The Reserve Bank of India, in consultation with the Government of India, has decided to permit diplomatic missions to credit visa fees collected in India in Indian rupees by way of transfer from the rupee account to the accounts maintained in foreign currency by the diplomatic missions, in addition to proceeds of inward remittances received from outside India through normal banking channels," RBI said in a release.
RBI said it has already notified necessary amendments to the Foreign Exchange Management (Deposit) Regulations to facilitate such transactions.
"Accordingly, authorised dealer Category - I banks may allow the diplomatic missions to credit the visa fees collected in India in Indian rupees, by way of transfer from the rupee account, to the account maintained in foreign currency by the diplomatic missions," RBI said in its release.
RBI has advised such banks to bring the contents of the circular to the notice of their constituents concerned.
RBI has cited the Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time, in terms of which proceeds of inward remittances received from outside India through normal banking channels are allowed to be credited to the accounts maintained in foreign currency by diplomatic missions.
Source : domain-b.com