RBI eases third-party payment norms for exports/imports
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/479 · issued 04 Feb 2014 · ~1 min read
Quick answerRBI has relaxed the requirement for a tripartite agreement for third-party payments in export/import transactions, allowing documentary evidence instead. The USD 100,000 limit for import third-party payments has also been removed.
The rule, in the simplest words
Banks can now accept documentary evidence instead of a tripartite agreement for third-party payments.
The USD 100,000 limit for import third-party payments has been removed.
Banks must verify transaction bona fides and adhere to FATF guidelines for third-party payments.
How it plays out — a real example
Rahul, a forex & trade-finance officer in Indore, is processing a third-party payment for an exporter. The exporter provides a documentary evidence explaining the circumstances leading to the payment. Rahul verifies the transaction authenticity by checking the invoice and FIRC, and ensures that the payment complies with FATF guidelines before processing the transaction.
What changed
The earlier mandatory condition of a firm irrevocable order backed by a tripartite agreement for third-party payments has been relaxed. Now, AD banks can accept documentary evidence explaining the circumstances leading to third-party payments or the name of the third party mentioned in the order/invoice. Additionally, the USD 100,000 cap on third-party payments for imports has been withdrawn.
What it means for you
Banks can now process third-party payments more flexibly, reducing compliance burden on exporters and importers. The removal of the import limit allows larger transactions without prior RBI approval, but banks must still verify transaction bona fides and adhere to FATF guidelines.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update internal policies to accept documentary evidence instead of mandatory tripartite agreements for third-party payments.
Ensure thorough due diligence on export/import documents like invoices and FIRCs to verify transaction authenticity.
Apply FATF recommendations when handling third-party payment transactions to prevent money laundering.
Communicate the relaxed norms to customers to facilitate smoother trade transactions.
Who it affects
All Category-I Authorised Dealer Banks, Exporters and importers using third-party payment arrangements
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 10:51 IST
Status change: withdrawn2026-07-13T04:47:15
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What replaced the tripartite agreement requirement for third-party payments?
AD banks can now accept documentary evidence showing the circumstances for third-party payments or that the third party's name appears on the irrevocable order or invoice.
Is there still a limit on third-party payments for imports?
No, the earlier USD 100,000 limit has been withdrawn, allowing higher amounts subject to bank satisfaction and FATF compliance.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/479
A.P. (DIR Series) Circular No.100
February 4, 2014
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Third party payments for export / import transactions
Attention of Authorized Dealer Category – I banks is invited to A. P. (DIR Series) Circular No.70 dated November 8, 2013 , in terms of which they have been permitted to allow third party payments for export of goods & software / import of goods subject to the conditions stated therein.
2. In view of the difficulties faced by exporters / importers in meeting the condition “firm irrevocable order backed by a tripartite agreement should be in place” specified in the abovementioned Circular, it has been decided that this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments / name of the third party being mentioned in the irrevocable order/ invoice has been produced. This shall be subject to conditions as under:
(i) AD bank should be satisfied with the bona-fides of the transaction and export documents, such as, invoice / FIRC.
(ii) AD bank should consider the FATF statements while handling such transaction.
3. Further, with a view to liberalising the procedure, the limit of USD 100,000 eligible for third party payment for import of goods, stands withdrawn.
4. All other terms & conditions mentioned in the A. P. (DIR Series) Circular No.70 dated November 8, 2013 remain unchanged.
5. AD Category – I banks may bring the contents of this Circular to the notice of their constituents concerned.
6. The directions contained in this circular have been issued under sections 10(4) and 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
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/479 · issued 04 Feb 2014. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=8731&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.
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