Engineering Consultants seek RBI intervention to avoid fee on foreign currency transactions within India

New Delhi, Aug 25 (KNN) The Engineering Consultant community in India have requested the Reserve Bank of India (RBI) to ensure that the foreign currency transactions within the country is not routed through the US banking system in order to avoid transaction fee.

The Consulting Engineers Association of India (CEAI) has sent a letter in this regard to the RBI Governor Shaktikanta Das, said a press release.

Currently transaction fee is levied on USD transactions within the country.

“While transacting in US Dollars or UK Pounds or Japanese Yen between any two countries, the payment is routed through the corresponding Banking system and a transaction fee is paid,” said K K Kapila, Chairman, Intercontinental Consultants and Technocrats (ICT) and chairman Business and Policy Committee, CEAI.

The transactions in US Dollars payments within India such as payment in USD from Delhi to Hyderabad from one entity to the other in the current dispensation, is required to be undertaken through the US.

Kapila opined that this should be undertaken directly through the RBI and there should be no requirement of routing them through the American Banking system.

“By routing the transactions through the American Banking system, the country is losing substantial money, which is going to the Americans towards transaction costs,” he added.

CEAI has called for an urgent correction and said even though if it’s a part of some Trade Agreement it needs to be addressed on top priority.  (KNN Bureau)