India will allow third party payments for imports and exports
The Reserve Bank of India announced on November 8 that authorised dealers (AD banks) may allow export payments for goods and software to be received from a third party. AD banks can also make payments to a third party for imports of goods on the condition that the payment amount does not exceed $100,000. Previously, export payments had to be received from overseas buyer named in the export declaration form, the company physically importing the goods. Now, a third party agent can make the payment. This will allow companies to operate on a “paying on behalf of” (PoBo) system common in centralised payment factories.