RBI Enhances limit for advance remittance of imports

Mumbai, Sep 8 (UNI) The Reserve Bank of India has raised the limit of advance remittance for all admissable current account trasanctions for import of services without bank guarantee to USD 500,000 from the current limit of USD 100,000.

The Apex Bank, in a circular here today, said the decision had been taken with a view to liberalise the procedures further and authorised dealer category-I banks to frame their own guidelines to deal with such cases as per the policy approved by the Board of Directors of the Bank.

Where the amount of advance exceeds USD 500,000 or its equivalent, a guarantee from a bank of international repute situated outside India, or a guarantee from an AD Category I bank in India, if such a guarantee is issued against the counter-guarantee of a bank of international repute situated outside India, should be obtained from the overseas beneficiary.

AD Category I banks should also follow-up to ensure that the beneficiary of the advance remittance fulfils his obligation under the contract or agreement with the remitter in India, failing which, the amount should be repatriated to India.

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