Consultants and service providers have urged the government to enable direct foreign currency transactions within the country through RBI, bypassing the current practice of routing transactions via the U.S. banking system.
Intercontinental Consultants and Technocrats (ICT) Chairman K.K. Kapila said currently, even domestic transactions in the U.S. dollar between entities within India necessitate routing through the U.S. banking system, incurring transaction fees.
"This practice results in substantial funds leaving our economy in the form of fees paid to American banks," Mr. Kapila added, who also heads Indian Road Federation (IRF).
He emphasised that it is illogical that internal foreign currency transactions within India require routing through the U.S., resulting in unnecessary costs to our businesses and economy.
According to Mr. Kapila, consultants and service providers emphasised the need for a streamlined approach where transactions involving foreign currencies like US dollars are facilitated directly through the RBI.
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