Easing procedures, the Reserve Bank of India (RBI) on Friday allowed the option of third-party payments for export and import transactions.
With a view to further liberalise the procedure relating to payments for exports and imports, banks are allowed payments for export of goods or software to be received from a third-party, the RBI said.
Banks are also permitted to make payments to a third-party for import of goods, it added. Banks, however, would have to follow certain conditions.
Third-party refers to an entity other than the buyer or the seller.
The apex bank said the procedure has been liberalised taking into account evolving international trade practices.
Third-party transaction should take place through the banking channel and with a Financial Action Task Force-compliant country.
"Normally payment for exports has to be received from the overseas buyer named in the Export Declaration Form (EDF) by the exporter and the payment shall be received in a currency appropriate to the place of final destination as mentioned in the EDF irrespective of the country of residence of the buyer," it said.
Similarly, payments for the import should be made to the original overseas seller of the goods, the apex bank added.