RBI permits third party payments for export, import transactions

The Reserve Bank of India (RBI) on Friday permitted third party payments for export/import transactions subject to certain conditions.

Among the key conditions RBI said that for export transaction firm irrevocable order backed by a tripartite agreement should be in place while for import transactions firm irrevocable purchase order / tripartite agreement should be in place.

RBI also said that for the export as well as import transaction third party payment should come from a Financial Action Task Force (FATF) compliant country and through the banking channel only.