RBI relaxes norms on companies' import payments

The Reserve Bank of India has raised the limit for companies to make payment for imports without any documentation to $5,000 with immediate effect from $500 earlier.

The Reserve Bank of India has raised the limit for companies to make payment for imports without any documentation to $5,000 with immediate effect from $500 earlier.

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The relaxation is part of the import liberalisation, the RBI said.

Henceforth, banks do not need to obtain any document, except a simple letter from the applicant, containing basic information like name, the address of the applicant, name and address of the beneficiary, amount to be remitted and purpose of remittance, the central bank said on Tuessday.