RBI permits third party payments for export, import transactions

RBI said for export transaction firm irrevocable order backed by tripartite agreement should be in place

The Reserve Bank of India (RBI) on Friday permitted third party payments for export/import transactions subject to certain conditions.

Among the key conditions RBI said that for export transaction firm irrevocable order backed by a tripartite agreement should be in place while for import transactions firm irrevocable purchase order / tripartite agreement should be in place.

RBI also said that for the export as well as import transaction third party payment should come from a Financial Action Task Force (FATF) compliant country and through the banking channel only.