RBI liberalises rules for exporters and importers

The Reserve Bank of India (RBI) has liberalised rules for exporters and importers who are not able to meet the condition of “firm irrevocable order backed by a tripartite agreement ”.  Also with a view to liberalising the procedure, the limit of $100,000 eligible for third party payment for import of goods has been withdrawn. 

 

According to RBI, this requirement of firm irrevocable order may not be insisted upon in case where documentary evidence for circumstances leading to third party payments / name of the third party in the irrevocable order/ invoice has been produced. 

 

However, RBI laid down few riders for the same which says that the bank should be satisfied with the bona-fides of the transaction and export documents. Besides that the bank should consider the Financial Action Task Force (FATF) statements while handling such transaction.