Form A‑1 is not required for making Payments exceeding 5000 USD in case of Imports

RBI/2014–15/467

A. P. (DIR Series) Cir­cu­lar No.76

Feb­ru­ary 12, 2015

For­eign Exchange Man­age­ment Act, 1999 — Import of Goods into India

Atten­tion of Autho­rised Deal­er Cat­e­go­ry — I (AD Cat­e­go­ry — I) banks is invit­ed to the A.P.(DIR Series) Cir­cu­lar No. 82 dat­ed Feb­ru­ary 21, 2012 in terms of which appli­ca­tions by per­sons, firms and com­pa­nies for mak­ing pay­ments, exceed­ing USD 5,000 or its equiv­a­lent towards imports into India must be made in Form A‑1.

2. To fur­ther lib­er­alise and sim­pli­fy the pro­ce­dure, it has been decid­ed to dis­pense with the require­ment of sub­mit­ting request in Form A‑1 to the AD Cat­e­go­ry ‑I Banks for mak­ing pay­ments towards imports into India. AD Cat­e­go­ry ‑I may how­ev­er, need to obtain all the req­ui­site details from the importers and sat­is­fy itself about the bonafides of the trans­ac­tions before effect­ing the remittance.

3. AD Cat­e­go­ry — I banks may bring the con­tents of this cir­cu­lar to the notice of their con­stituents and cus­tomers concerned.

4. The direc­tions con­tained in this cir­cu­lar have been issued under Sec­tion 10 (4) and Sec­tion 11 (1) of the For­eign Exchange Man­age­ment Act (FEMA), 1999 (42 of 1999) and are with­out prej­u­dice to per­mis­sions / approvals, if any, required under any oth­er law.

Yours faith­ful­ly,

(C. D. Srinivasan)

Chief Gen­er­al Manager