RBI allows start- ups to open foreign currency accounts

RBI allows start- ups to open foreign currency accounts

The Reserve Bank of India (RBI) on Thursday said an Indian start- up, with a subsidiary abroad, may open a foreign currency account with a bank outside India for crediting money to the account of foreign- exchange earnings. The share of the balance in such accounts through exports should be repatriated, it said.

Okays writing options

The central bank allowed Indian exporters and importers to write ‘ call’ and ‘put’ currency options.

Banks should treat such options as “ unhedged exposure” and set aside additional provisions for such exposure, RBI said in its notification.

Business Standard New Delhi, 24th June 2016