[CSMysore] RBI News - Amendment to Current Account Transactions Rules
raja karthik
Dear All,
RBI vide A. P. (DIR Series) Circular No. 52 dated May 13, 2010 amended Foreign Exchange Management (Current Account Transactions) Rules 2000 with respect to payment of royalty and lump-sum payment under technical collaboration agreements :
Existing Rule
Prior approval of Ministry of Commerce and Industry, GOI required for drawing foreign exchange for remittances under technical collaboration agreements if payment of royalty exceeds 5% on local sales and 8% on exports and lump-sum payment exceeds USD 2 million
New Rule
As a measure of liberalization prior approval of Ministry of Commerce and Industry has been done away with. Thus AD Category-I banks may permit drawal of foreign exchange by persons for payment of royalty and lump-sum payment under technical collaboration agreements without the approval of Ministry of Commerce and Industry, Government of India.
Copy of Circular and notification of GOI attached.
Thanks and Regards,
Raja Karthik S.
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