RBI guidelines on payment under import of equipment by BPO

Bank formalities in India  for BUSINESS PROCESS OUTSOURCING (BPO) 


According to Reserve Bank of India update as on 31st May, 2022, the directions on RBI guidelines to Business Process Outsourcing in India is given below: 


C.5. Import of Equipment by Business Process Outsourcing (BPO) Companies for their Overseas Sites

AD Category – I bank may allow BPO companies in India to make remittances towards the cost of equipment to be imported and installed at their overseas sites in connection with the setting up of their International Call Centres (ICCs) subject to the following conditions:

(i) The BPO company should have obtained necessary approval from the Ministry of Communications and Information Technology, Government of India and other authorities concerned for setting up of the ICC.

(ii) The remittance should be allowed based on the AD Category - I banks’ commercial judgment, the bonafides of the transactions and strictly in terms of the contract.

(iii) The remittance is made directly to the account of the overseas supplier.

(iv) The AD Category – I banks should also obtain a certificate as evidence of import from the Chief Executive Officer (CEO) or auditor of the importer company that the goods for which remittance was made have actually been imported and installed at overseas sites.

(v) The AD Category I bank should ensure compliance with IDPMS guidelines as applicable.

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