Levy of charges on forex prepaid cards/store value cards/travel cards, etc.
Certain instruments like International Debit Cards/Store Value Cards/Charge Cards/Smart Cards or any other instrument that can be used in India to create a financial liability, as ‘currency’. The banking regulator Reserve Bank of India observed that a few Authorised Persons are levying certain fees/charges, which are payable in India on such instruments, in foreign currency.…
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Resident Individuals may also open a Foreign Currency Account (FCA) in IFSCs under the LRS scheme
RBI on Wednesday (April 26) decided to amend the directions under para 2 (ii) of the A.P. (DIR Series) Circular dated February 16, 2021. As per the revised amendment, Resident Individuals may also open a Foreign Currency Account (FCA) in IFSCs, for making the above permissible investments under Liberalised Remittance Scheme (LRS). Hence, the extant…
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Money transfer guide for NRIs who sold their property in India
The Non-Resident Indians (NRIs), Persons of Indian Origin (PIO), or Overseas Citizens of India (OCI) may want to sell their property if they do not have a plan to visit India or maintain the property in India. Any property residential or commercial can be sold to a resident Indian whether purchased, inherited, or gifted. However,…
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Forex arbitrage and Interest arbitrage explained
When an entity taking advantage of two or more markets of a price difference goes for simultaneous purchase and sale of a financial instrument on different markets. This is called Arbitrage. The trader involved in arbitrage makes a profit from the difference in prices at different markets. In our previous article ‘WHY ARBITRAGE FUNDS RANK…
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Points to be remembered while handling import documents
Handling import documents is a sensitive job. In the past, there were several instances of remittances made by the banks on behalf of unscrupulous persons who have submitted fake import bills for the purpose of siphoning out the country’s foreign exchange. The risk of fake import bills is highest for import bills received on a…
RBI renews the Statement of Commitment (SoC) to the FX Global Code (“Code”).
The Reserve Bank of India (RBI) on Wednesday has signed its renewed Statement of Commitment (SoC) to the FX Global Code (“Code”). The FX Global Code (Code) is a compilation of best market practices, formulated by Central Banks and market participants, developed under the auspices of Bank for International Settlements (BIS), Basel. The Code sets…
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