December 2010
A.P. (DIR Series) Circular No. 17, dated 16-11-2010 — Processing and settlement of export-related receipts facilitated by Online Payment Gateways.
By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Brijesh Cholera, Pratik Mehta | Chartered Accountants
Sejal Vasa | Company Secretary
Reading Time 2 mins
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Given below are the highlights of certain RBI Circulars.
25. A.P. (DIR Series) Circular No. 17, dated 16-11-2010 —
Processing and settlement of export-related receipts facilitated by Online
Payment Gateways.
This Circular allows banks, subject to certain conditions, to
offer the facility of repatriation of export-related remittances by entering
into standing arrangements with Online Payment Gateway Services Providers
(OPGSP). Some of the important conditions are :
1. Banks offering this facility must carry out the due
diligence of the OPGSP.
2. This facility will only be available for export of
goods and services of value not exceeding US $ 500.
3. Banks providing such facilities must open a NOSTRO
collection account for receipt of the export-related payments facilitated
through such arrangements.
4. A separate NOSTRO collection account must be
maintained for each OPGSP or the bank must be able to delineate the
transactions in the NOSTRO account of each OPGSP.
5. Only the following debits will be permitted to the
NOSTRO collection account opened under this arrangement :
(a) Repatriation of funds representing export proceeds to
India for credit to the exporters’ account;
(b) Payment of fee/commission to the OPGSP as per the
predetermined rates/frequency/arrangement; and
(c) Charge back to the importer where the exporter has
failed in discharging his obligations under the sale contract.
6. Balances in the NOSTRO collection account must be
repatriated and credited to the respective exporter’s account with a bank in
India within seven days from the date of credit to the NOSTRO collection
account.
7. Banks shall satisfy themselves as to the bona fides of
the transactions.
8. OPGSP who are already providing such services as per the
specific holding-on approvals issued by the Reserve Bank shall open a liaison
office in India within three months from the date of this Circular. All new
OPGSP must open a liaison office with the approval of the Reserve Bank before
operationalising the arrangement.
