Forex regulation and control Authorized dealer (AD)

AD is a person authorized in writing by RBI to deal in foreign exchange

Requirement because RBI cannot deal directly with public, its bankers bank

AD generally banks

They can deal only in permitted foreign currencies

Banks daily process Individuals Corporate (exporters / importers)

EEFC

Foreign RemittanceInward RemittanceNo restriction in receiving Inward Remittance As it means an addition to country foreign exchange resources When inward remittance is Rs. 10,000 or more, then purpose of remittance has to be reportedOutward RemittanceRemittance of any permitted currency to any country outside India Travelers chequeA traveler's cheque is a preprinted, fixed-amount cheque Designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for that privilege.

Other Important TermsNostro AccountThe account maintained by an Authorized Dealer with a foreign bank in their currency

Vostro AccountForeign banks (Correspondents) also maintain accounts with any bank in India in Indian Rupees for the purpose of settling their rupee transactions and these accounts