RBI eases forex rules for BPO call centre equipment imports
Current · Source: Reserve Bank of India · RBI/2006-2007/418 · issued 25 May 2007 · ~1 min read
Quick answerRBI now allows AD Category-I banks to approve remittances for BPO companies importing and installing equipment overseas for International Call Centres, without physical import into India, subject to conditions.
The rule, in the simplest words
BPO companies can now get bank approval to send money abroad for buying and setting up equipment for International Call Centres (call centers that handle calls from other countries) without bringing the equipment into India.
The bank (AD Category-I bank) checks if the deal is honest and makes sense, instead of needing special permission from RBI.
The BPO company must have a government approval from the Ministry of Communications and Information Technology (the ministry that handles phones and internet) for the call centre.
The money must be sent directly to the overseas supplier's bank account.
The BPO company's CEO (top boss) or auditor must give a certificate saying the equipment was really imported and installed at the overseas site.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, is reviewing a remittance request from a BPO company setting up a call centre in the Philippines. She checks that the company has the required government approval, then approves the payment directly to the equipment supplier's account, and later collects a certificate from the company's CEO confirming the equipment was installed overseas.
What changed
Previously, BPO companies needed specific RBI permission for remittances when equipment was installed overseas without physical import into India, as they couldn't produce a Bill of Entry. Now, AD Category-I banks can directly allow such remittances based on their commercial judgment and the transaction's bonafides.
What it means for you
This simplifies forex compliance for BPOs setting up International Call Centres abroad, reducing their need for direct RBI approvals. Banks gain more flexibility and responsibility in approving these remittances, but must ensure strict adherence to conditions like government approvals and obtaining a CEO/auditor certificate as import evidence.
What you must do
Verify that the BPO company has approval from the Ministry of Communications and Information Technology and other relevant authorities for the ICC.
Assess the remittance request based on commercial judgment, transaction bonafides, and the contract terms.
Ensure remittances are made directly to the overseas supplier's account.
Obtain a certificate from the CEO or auditor of the importer confirming import and installation of goods at overseas sites.
Inform your constituents and customers about this new facility.
Who it affects
AD Category-I banks, BPO companies in India setting up International Call Centres, Overseas equipment suppliers
❓ Common questions
What if the BPO company doesn't have the required government approval?
The circular mandates that the BPO must have obtained necessary approval from the Ministry of Communications and Information Technology and other authorities. Without it, the remittance cannot be allowed.
How do we document the import if equipment is installed overseas?
Instead of a Bill of Entry, you must obtain a certificate from the CEO or auditor of the importer company confirming that the goods were imported and installed at the overseas site.
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/418
A.
P. (DIR Series) Circular No. 63
May
25, 2007
To,
All
Category - I Authorised Dealer Banks
Madam
/ Sir,
Import
of Equipments by BPO Companies in India for International Call Centre
Attention
of Authorised Dealer Category - I (AD Category - I) banks is invited to paragraph
A.10.1 of the Annexure to A.P. (DIR Series) Circular
No.106 dated June 19, 2003, in terms of which, it is obligatory on the part
of the AD Category - I banks through whom the remittance for imports has been
made, to ensure that the importer submits the Exchange Control copy of the Bill
of Entry for home consumption as evidence of import.
2.
Reserve Bank has been receiving requests from Business Process Outsourcing (BPO)
companies in India for permission to make remittances towards import and installation
of equipments at overseas sites in connection with setting up of their International
Call Centres (ICCs). In such cases, the equipments are installed at overseas sites
without physical import taking place in India. As a result, the importers are
unable to produce evidence of import, requiring specific permission from the Reserve
Bank.
3.
As announced in the Annual
Policy Statement for the year 2007-08 [para 146 (i) (v)], with the objective
of rationalising and simplifying the Foreign Exchange Regulations and providing
greater flexibility to such transactions, it has been decided that AD Category
– I banks may, henceforth, allow BPO companies in India to make remittances towards
the cost of equipment to be imported and installed at their overseas sites.
4.
The remittances are subject to the following conditions:
(i)
The BPO company should have obtained necessary approval from the Ministry of Communications
and Information Technology, Government of India and other authorities concerned
for setting up of the ICC.
(ii)
The remittance should be allowed based on the AD Category – I banks’ commercial
judgment, the bonafides of the transactions and strictly in terms of the contract.
(iii)
The remittance is made directly to the account of the overseas supplier. 5.
The AD Category – I banks should also obtain a certificate as evidence of import
from the Chief Executive Officer (CEO) or auditor of the importer company that
the goods for which remittance was made have actually been imported and installed
at overseas sites.
6.
AD Category – I banks may bring the contents of this circular to the notice of
their constituents and customers concerned.
7.
The directions contained in this circular have been issued under Sections 10(4)
and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without
prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/418 · issued 25 May 2007. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, BPO companies in India setting up International Call Centres, Overseas equipment suppliers), your first concrete step on “RBI eases forex rules for BPO call centre equipment imports” is: “Verify that the BPO company has approval from the Ministry of Communications and Information Technology and other relevant authorities for the ICC.” (RBI issued this 25 May 2007).
Circular: RBI/2006-2007/418 -- RBI eases forex rules for BPO call centre equipment imports
Issued: 25 May 2007
Action required: Verify that the BPO company has approval from the Ministry of Communications and Information Technology and other relevant authorities for the ICC.
Action required: Assess the remittance request based on commercial judgment, transaction bonafides, and the contract terms.
Action required: Ensure remittances are made directly to the overseas supplier's account.
Action required: Obtain a certificate from the CEO or auditor of the importer confirming import and installation of goods at overseas sites.
Action required: Inform your constituents and customers about this new facility.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3555&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.