Reserve Bank of India has further liberalized the regime for making payments for imports by doing away with the requirement of submitting request in Form A-1 to banks prior to making payments.
Earlier this facility was available only for transactions of smaller denominations. Now the facility is extended to transactions above denominations of USD 5000 or equivalent also.
A recent circular issued by RBI under the Foreign Exchange Management Act (1999) states, “To further liberalise and simplify the procedure, it has been decided to dispense with the requirement of submitting request in Form A-1 to the Banks for making payments towards imports into India”.
The banks may however, need to obtain all the requisite details from the importers and satisfy itself about the bonafides of the transactions before effecting the remittance.
Making payments for imports made easy
Published On - February 16, 2015
