Service Imports, Banking process on Advance remittance in India


According to Reserve Bank of India update as on 31st May, 2022, the directions on RBI rules on reciepts of Advance payment under import of services is given below: 

C.1.4. Advance Remittance for the Import of Services

AD Category – I bank may allow advance remittance for import of services without any ceiling subject to the following conditions:

(a) Where the amount of advance exceeds USD 500,000 or its equivalent, a guarantee from a bank of international repute situated outside India, or a guarantee from an AD Category – I bank in India, if such a guarantee is issued against the counter-guarantee of a bank of international repute situated outside India, should be obtained from the overseas beneficiary.

(b) In the case of a Public Sector Company or a Department/ Undertaking of the Government of India/ State Governments, approval from the Ministry of Finance, Government of India for advance remittance for import of services without bank guarantee for an amount exceeding USD 100,000 (USD One hundred thousand) or its equivalent would be required.

(c) AD Category – I banks should also follow-up to ensure that the beneficiary of the advance remittance fulfils his obligation under the contract or agreement with the remitter in India, failing which, the amount should be repatriated to India.

(d) AD Category – I banks should ensure generation of ORMs and marking off in the IDPMS etc., as per extant IDPMS guidelines.

Bank directions to be read by each Importer in India

Banking regulations on Exports and Imports in India

Importing from India?  Click here to read Bank process in India

Bank conditions to remit advance for import in India    Terms of Banker on Issue of Guarantee to Importer in India    Government condition on Third Party Payment for Import Transactions in India    Bringing Foreign Exchange into India, India government rules     Time Limit for Settlement of Import Payments, Bank regulations in India     Indian Bank regulations on Purchaser of Foreign Exchange     Banking regulations on Import of Goods and Services

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