RBI hiked trade related remittance limit from Rs.2 lakh to Rs.5 lakh per transaction
The Reserve Bank of India (RBI) hiked the trade related remittance limit from Rs.2 lakh to Rs.5 lakh per transaction with immediate effect and also increased the number of transaction handled by exchange houses. The hike in per transaction is on the review of the permitted transactions under the Rupee Drawing Arrangements (RDAs). These changes have been included in the Memorandum of Instructions for Opening and Maintenance of Rupee/ Foreign Currency Vostro Accounts of Non-resident Exchange Houses.
Note: Vostro account (also known as a loro account) is one in which the domestic bank acts as custodian or manages the account of a foreign counterpart.
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Month: Current Affairs - March, 2014