13 July, 2015
Pursuant to the circular dated May 21, 2015, the limit of permitted trade transactions under rupee drawing arrangements has been raised from the existing limit of Rs. 500,000 (USD 7,386 approx.) to Rs. 1,500,000 (USD 23,513 approx.). Under the rupee drawing arrangements, inward remittances are received in India through exchange houses situated in Gulf countries, Hong Kong and Singapore. The notification permits AD Banks to regularize the payments exceeding the limit subject to their satisfactionabout the bona fides of the transaction and certain additional steps which inter alia include ensuring that such remittancesare from Financial Action Task Force compliant countries.
For further information, please contact:
Abhishek Saxena, Partner, Phoenix Legal
abhishek.saxena@phoenixlegal.in
