Amid increased number of transactions handled by exchange houses, the Reserve bank of India (RBI) hiked the trade related remittance limit from Rs 2 lakh to Rs 5 lakh per transaction with immediate effect.
In order to comply with central bank's guideline, necessary changes have been made in memorandum of instructions for opening and maintenance of rupee/ foreign currency vostro accounts of non-resident exchange houses. Earlier in 2008, the apex bank had also rationalized norms on maintenance of rupee/foreign currency Vostro accounts of non-resident exchange houses in the view of rapid developments in the communication facilities and the increased number of transactions being handled by the Exchange Houses.
In a separate announcement, the RBI has also notified that the government will repurchase of its securities through reverse auction for an aggregate amount of Rs 15,000 crore (face value). Bids for the auction have to be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on March 18 and the result of the auctions will be announced on the same day and settlement will take place on March 19.