Allow foreign currency transactions in country via RBI- Consultants & service providers urge govt

Allow foreign currency transactions in country via RBI: Consultants & service providers urge govt

Consultants and service providers in the country have urged the government to stop routing domestic foreign currency deals via the US banking system, in order to avoid transaction fees and save foreign currency.

Rather such domestic deals involving foreign currencies such as the US dollar should be routed through the Reserve Bank of India. At present a transaction fee is levied on US dollars transactions within the country.

“By routing the transactions through the American Banking system, the country is losing substantial money, which is going to the Americans towards transaction costs,” ambassador for Asia-Pacific region for the International Federation of Consulting Engineers K K Kapila said in a statement.

Kapila pointed out that a small country like the Philippines does not route its internal foreign exchange transactions through the United States. “If the Philippines can do it, why not India? ” he said, adding “this needs an urgent correction, lest we continue to lose every single day. If it is part of some Trade Agreement, it needs an urgent relook. Let this be addressed on top priority.” According to him, the consultants and the service sector demanded that such deals involving foreign currencies such as the US dollar in the country should be routed through the Reserve Bank of India.