Foreign airlines in India cannot settle transactions overseas: RBI

Mumbai: Reserve Bank of India has asked foreign airlines operating in India to stop the practice of using overseas banks to settle transactions on the sale of air tickets in India.
Some foreign airlines have an arrangement in India with credit card companies for allowing customers to select the country and currency of their choice while buying tickets from India, the central bank said.
In such a transaction, the overseas bank receives funds from the card company in its account maintained with an authorised dealer bank in India or in its foreign currency account maintained abroad and makes the payment in a foreign currency to the foreign airline.
05/04/11 Economic Times

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Categories: Foreign Apr 2011