Experts Urge Government to Simplify Foreign Currency Transactions

Consultants and service providers are pushing for direct foreign currency transactions through RBI to avoid fees associated with routing through the US banking system. This practice, they argue, unnecessarily drains funds from the Indian economy. They stress the need for a streamlined approach for transactions involving foreign currencies.

Consultants and service providers are calling on the Indian government to enable direct foreign currency transactions through the Reserve Bank of India (RBI), eliminating the need to route transactions via the US banking system.

K K Kapila, Chairman of Intercontinental Consultants and Technocrats (ICT), highlighted that even domestic transactions in US dollars between entities within India currently necessitate routing through the US banking system, leading to transaction fees.

Kapila, who also heads the Indian Road Federation (IRF), stated, "This practice results in substantial funds leaving our economy in the form of fees paid to American banks." He emphasized the irrationality of internal foreign currency transactions within India requiring US routing, which imposes unnecessary costs on businesses and the economy.

Consultants and service providers are advocating for a more streamlined approach, where transactions involving foreign currencies like the US dollar are facilitated directly through the RBI.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)