Saturday, April 30, 2016

Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-Resident Exchange Houses: Rupee Drawing Arrangement

To streamline the remittance under the Speed Remittance Procedure and make it cost-effective, it has now been decided to do away with the requirement of maintaining collateral or cash deposits by the Exchange Houses with whom the banks have entered into the Rupee Drawing Arrangement.
The AD banks are free to determine the collateral requirement, if any, based on factors and may frame their own policy in this regard :
whether the remittances are pre-funded,
the track record of the Exchange House,
whether the remittances are effected on gross or net basis, etc.
Based on the RBI notification dated 28/04/2016. Please refer in case of any further clarification………….. Poppy