foreign currency transactions: allow foreign currency transactions in the country through RBI, requires the corps of engineers

An association of consulting engineers on Thursday urged the government not to route foreign currency transactions within the country through the US banking system in order to reduce transaction costs. The Association of Consulting Engineers of India (CEAI) has demanded that such transactions involving foreign currencies such as the US dollar in the country be channeled through the Reserve Bank of India.

“Currently, there is a transaction fee charged on in-country US dollar transactions. As you know, when transactions in US dollars or British pounds or Japanese yen between two countries, payment is routed through the banking system. correspondent and transaction fees are paid, ”said KK Kapila, Chairman of the Business and Policy Committee, CEAI.

“US dollar transactions for payments in India, for example a US dollar payment from Delhi to Hyderabad from one entity to another in the current exemption, must be made through the United States. This should be done directly through the Reserve Bank of India and there should be no obligation to route them through the US banking system, “he said.

By channeling transactions through the U.S. banking system, the country is losing substantial money, which goes to Americans in transaction fees, Kapila said.

“Isn’t it a special scenario that one of the Indian banks sends dollars to the United States to collect them from another Indian bank?” In my opinion, as long as we are doing US dollar transactions in India, there should be no transactions. cost payable in the United States, ”he added.

“This needs urgent correction, lest we keep losing every day. If this is part of a trade deal, it needs an urgent overhaul. Let this be dealt with as a priority,” he added.