Transaction Limit Raised to Rs. 5 Lakhs in
Rupee Trade
[RBI
Circular No. 111 dated 13th March 2014]
Sub:
Rupee Drawing Arrangement - Increase in trade related remittance limit
Attention
of Authorised Dealer Category – I (AD Category – I) banks is invited to Part
(B) of Annex-I to the A.P. (DIR Series) Circular No. 28 [A. P. (FL/RL Series)
Circular No. 02] dated February 6, 2008 on Memorandum of Instructions for
Opening and Maintenance of Rupee/ Foreign Currency Vostro
Accounts of Non-resident Exchange Houses, as amended from time to time.
2. On a review of
the Permitted Transactions under the Rupee Drawing Arrangements (RDAs), it has
been decided to increase the limit of trade transactions from the existing Rs 2,00,000/- (Rupees Two Lakh only) per transaction to Rs 5,00,000/- (Rupees Five Lakh only) per transaction, with
immediate effect.
3. All other
instructions issued vide A.P. (DIR Series) Circular No. 28 [A. P. (FL/RL
Series) Circular No. 02] dated February 6, 2008, as amended from time to time,
will remain unchanged.
4. AD Category -
I banks may bring the contents of this circular to the notice of their
constituents concerned.
5. The directions
contained in this circular have been issued under Section 10(4) and Section
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.