RBI hikes trade transaction limit to Rs 5 lakh

RBI today hiked the trade related remittance limit from Rs 2 lakh to Rs 5 lakh per transaction, amid increased number of transactions handled by Exchange Houses.

"On a review of the permitted transactions under the Rupee Drawing Arrangements (RDAs), it has been decided to increase the limit of trade transactions from the existing Rs 2 lakh per transaction to Rs 5 lakh per transaction, with immediate effect," the Reserve Bank said.

For this necessary changes have been made in Memorandum of Instructions for Opening and Maintenance of Rupee/ Foreign Currency Vostro Accounts of Non-resident Exchange Houses.

Earlier in 2008, RBI had rationalised norms on maintenance of rupee/foreign currency Vostro accounts of non-resident Exchange Houses in view of the increased number of transactions being handled by the Exchange Houses and the rapid developments in the communication facilities.

Meanwhile, RBI said the government has notified the repurchase of its securities through reverse auction for an aggregate amount of Rs 15,000 crore (face value).

Bids for the auction have to be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on March 18.

The result of the auctions will be announced on the same day and settlement will take place on March 19.