Mumbai, Mar 14 (KNN) The Reserve Bank of India (RBI) has hiked the trade related remittance limit from Rs 2 lakh to Rs 5 lakh per transaction with immediate effect, 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," RBI said in a notification. 

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

“…for Opening and Maintenance of Rupee/ Foreign Currency Vostro Accounts of Non-resident Exchange Houses, as amended from time to time,” the notification said.

Earlier in 2008, “In view of the increased number of transactions being handled by the Exchange Houses and the rapid developments in the communication facilities between Exchange Houses and drawee banks, there was a need to rationalise the existing instructions on maintenance of rupee / foreign currency Vostro accounts of non-resident Exchange Houses. Accordingly, the Memorandum of Instructions containing procedural instructions has been rationalized,” an RBI notification had said on February 6, 2008. (KNN/SD)