According to a recent report the RBI has increased the amount that the exporters can receive through service providers.
The RBI offered the enhancement of amount that can be received as export remittances through Online Payment Gateway Service Providers (OPGSPs) from $500 to $3000.
The Central Bank has permitted the banks dealing with foreign exchange to bid the facility to return back the export related payments through online payment gateway service providers of service providers by making standing agreements with OPGSPs or service providers.
Those banks which provide this facility have to open a Nostro collection account, which is a bank account held in foreign country by an Indian bank, for receipt of payments. Similarly, the exporters who utilize this facility of remittances through bank service provider should open a notional account with the OPGSP.
It further has to be made sure that none of the fund is retained in the account and all the receipts should be swept and pooled in the Nostro collection account opened by the bank.
Regarding this the banks have to either maintain a separate Nostro collection account for each service provider or they should be able to demarcate the transactions of each Nostro account.
Once the confirmation is obtained from the importers the balances held in the Nostro account has to be repatriated and credited in the respective account of the exporter in the Indian Bank and not later than seven days from the date of credit to the account.
The RBI is the central banking institution of India and it controls the monetary policy of the rupee. The regulator has recently hiked key interest rates by 25 basis points, which is its 12th such hike since March, 2010. The hike has made car loan, home loans, personal loans and other loans more expensive.