What changed
The previous limit of USD 100,000 for direct receipt of import bills/documents by importers has been raised to USD 300,000. This liberalization applies to AD Category-I banks making remittances for imports where documents are received directly from the overseas supplier.
What it means for you
Banks can now process higher-value import remittances without requiring documents to pass through the banking channel, reducing paperwork and turnaround time for importers. However, banks must still conduct due diligence, ensure KYC/AML compliance, and report suspicious transactions to FIU-IND. The change simplifies trade finance for smaller imports but does not alter conditions for status holder exporters or rough diamond imports.
What you must do
- Update internal trade finance policies to reflect the new USD 300,000 limit for direct import bill remittances.
- Ensure due diligence on importer customers, including financial standing and track record, before processing such remittances.
- Verify that the transaction is customary in the trade and compliant with Foreign Trade Policy.
- Report any suspicious transactions via Suspicious Transaction Report (STR) to FIU-IND.
- Communicate the revised limit to all relevant constituents and customers.
Who it affects
AD Category-I banks, Importers who receive import bills/documents directly from overseas suppliers, Trade finance departments of banks
Does this circular apply to all types of imports?
Yes, for imports where documents are received directly by the importer from the overseas supplier, subject to conditions like compliance with Foreign Trade Policy and bank due diligence. Separate instructions for status holder exporters and rough diamond imports remain unchanged.
What due diligence must banks perform before remitting under the new limit?
Banks must be satisfied about the bonafides of the transaction, the importer's financial standing and track record, ensure KYC/AML compliance, and confirm that direct receipt of documents is customary in that trade.
What if the bank suspects the transaction is not genuine?
The bank must file a Suspicious Transaction Report (STR) with FIU-IND and refrain from processing the remittance until further clarity.