The Reserve Bank of India (RBI) has liberalised the procedure for third-party payment for imported goods by doing away with the ceiling of $100,000.
RBI had, earlier, said the amount of an import transaction for third-party payment should not exceed $100,000.
RBI also relaxed the condition for importers to obtain ''firm irrevocable order backed by a tripartite agreement'' in view of the difficulties faced by exporters and importers in meeting the requirements.
The central bank said it has now been decided that this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments / name of the third party being mentioned in the irrevocable order/ invoice has been produced.
This, however, would be subject to the authorised dealer bank being satisfied with the bona-fides of the transaction and export documents, such as, invoice / FIRC.
The bank should consider the FATF statements while handling such transaction.
Third-party payment could be made to a Financial Action Task Force (FATF) compliant country and through the banking channel only.
All other terms and conditions mentioned remain unchanged, RBI said.