RBI eases norms for BPOs to venture out

The Reserve Bank has diluted norms for outsourcing firms in India to draw foreign exchange for buying equipments for new overseas call centres, enabling them to start their foreign journey on a sound note.

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, said a recent RBI notification.

RBI has modified the procedure following such 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.

Previously, 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.

Also, RBI Governor Y V Reddy had, while unveiling the annual credit policy, proposed to relax the foreign exchange regulations and provide greater flexibility for such transactions.