RBI eases forex norms for BPOs setting up overseas arms

Mumbai: The Reserve Bank of India (RBI) has diluted foreign exchange norms for outsourcing firms in India for buying equipment for new overseas call centres.

"It has been decided that authorised banks may allow BPO firms to pay for equipments to be imported and installed at their overseas sites without physically bringing them to India, which was the requirement till now," RBI said in a recent notification.

The foreign exchange rules have been modified following requests from BPO companies wanting to set up call centres overseas.

BPO companies would, however, be required to take necessary approvals from the ministry of information technology in this regard.

Earlier, BPO companies were required to produce the exchange control copy of the bill of entry for home consumption as evidence of import of equipments before taking them at overseas locations, which the importers were usually unable to furnish.

In its annual credit policy, the RBI had proposed to relax foreign exchange regulations and provide greater flexibility for such transactions.