|
RBI/2014-15/603
A. P. (DIR Series) Circular No. 102
May 21, 2015
To,
All Authorised Dealer Category - I Banks
Madam / Sir,
Rupee Drawing Arrangement - Increase in trade related remittance limit
Attention of Authorised Dealer Category – I (AD Category – I) banks is
invited to Part (B) of Annex-I to the
A.P. (DIR Series) Circular No. 28 [A. P.
(FL/RL Series) Circular No. 02] dated February 6, 2008 on Memorandum of
Instructions for Opening and Maintenance of Rupee/ Foreign Currency Vostro
Accounts of Non-resident Exchange Houses and
A.P. (DIR Series) Circular No.111
dated March 13, 2014, as amended from time to time.
2. On a review of the permitted transactions under the Rupee Drawing
Arrangements (RDAs), it has been decided to increase the limit of trade
transactions from the existing Rs. 5,00,000/- (Rupees Five Lakh only) per
transaction to Rs. 15,00,000/- (Rupees Fifteen Lakh only) per transaction, with
immediate effect.
3. Further, it has been decided to permit AD banks to regularise payments
exceeding the prescribed limit under RDA provided that they are satisfied with
the bonafide of the transaction. Further they must take additional steps as
under:
- AD banks must ensure the remittances received under RDA are from FATF compliant countries,
- KYC/AML/CFT and other due diligence concerns should be taken care of by AD
banks,
- Individual Exchange Houses which are frequently sending large value trade
related remittances must be reviewed and reported to the Reserve Bank of India,
- AD banks must contact their correspondents that maintain accounts for, or
facilitate transactions on behalf of Exchange Houses in order to request
additional information regarding high value trade related transactions and the
parties involved. The collected details should be kept on record and it may be
made available for scrutiny,
- AD banks must ensure that the proceeds of export payment through RDA is applied
to the outstanding export finance if any, availed by the exporter from any bank
for the concerned export transaction and obtain a declaration to that effect
from the exporter.
4. All other instructions issued vide
A.P. (DIR Series) Circular No. 28 [A. P.
(FL/RL Series) Circular No. 02] dated February 6, 2008, as amended from time to
time, will remain unchanged.
5. AD Category - I banks may bring the contents of this circular to the notice
of their constituents concerned.
6. The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999) and are without prejudice to permissions / approvals, if any, required
under any other law.
Yours faithfully,
(B. P. Kanungo)
Principal Chief General Manager
|