RBI issues 17 master directions on forex transactions

The move comes as part of RBI’s efforts to update all its master regulations with an aim to streamline the required procedure for compliance to its guidelines The Dollar Business Bureau

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As part of its efforts to ensure clarity in communication of regulatory guidelines, the Reserve Bank of India has issued 17 master directions related to foreign exchange transactions. The master directions on foreign exchange issued on Monday consolidate all the relevant circulars issued so far and cover different classes of transactions allowed under the Foreign Exchange Management Act, 1999 (FEMA). “Master directions on foreign exchange matters deal with the manner in which an authorised person should conduct cross border/forex transactions,” the Central Bank said in a statement. As per the FEMA norms, all cross border and/or foreign exchange transactions are to be conducted through an authorised person, and the RBI issues directions to these authorised persons in regard to the manner of conducting these transactions with their respective customers/ constituents. The move came after RBI Governor Raghuram Rajan had, in September, said that the Reserve Bank will update all its master regulations, and streamline the required procedure for compliance with the regulations by January 1, 2016. “All master regulations will be fully updated and placed online. The Reserve Bank will also work to improve clarity in regulatory communications,” the RBI Governor had said. The process involves issuing one master direction for each subject covering all instructions on that subject. Any change in the rules, regulation or policy will be communicated during the year by way of circulars. All the changes will get reflected in the master directions available on the RBI website along with the dates on which changes are made, the RBI said, adding that the existing set of master circulars on various subjects will stand withdrawn with the issue of the master direction on the subject.

January 05, 2016 | 03:10pm IST

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The Dollar Business Bureau - Jan 05, 2016 09:38 IST

RBI issues 17 master directions on forex transactions

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