Reserve Bank of India

04.02.2016

Banking

Settlement of Export/ Import transactions in currencies without direct exchange rate

MANU/APDR/0009/2016

The Reserve Bank of India has permitted AD Category-I banks to settle import and export transactions where invoicing is in a freely convertible currency and the settlement takes place in the currency of the beneficiary, which while convertible does not have a direct exchange rate. Qualifications include existence of a signed contract or invoice in a freely convertible currency, beneficiary willing to receive payment in its currency instead of the original, amongst others.

Tags : Export import transaction direct exchange rate

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