The Reserve Bank of India has upped the limit for release of foreign exchange for imports by persons, firms and companies without any documentation formalities from $500 or its equivalent to $5,000 or its equivalent, with immediate effect.
Payment for such transaction should be made by cheque drawn on the applicant's bank account or by a Demand Draft.
This liberalisation measure comes in the wake of suggestions received by the RBI from various stakeholders.
The central bank said the banks authorised to deal in foreign exchange need not obtain any document, except a letter from the applicant containing basic information such as name and the address of the applicant, name and address of the beneficiary, amount to be remitted and the purpose of remittance, as long as the exchange being purchased is for a current account transaction.