Steps being taken to prevent forex violations, says government

NEW DELHI: Government today said the Reserve Bank has taken various steps, including constitution of a working group to devise import data monitoring and processing system, to prevent instances of foreign exchange violations. Minister of State for Corporate Affairs Arjun Ram Meghwal today said RBI has informed that recently a case of foreign exchange violation at Bank of Baroda's Ashok Vihar branch in the

national capital. He told the Lok Sabha that advance import remittances were permitted without verifying the bonafide of transactions.

Proper due diligence of both Indian clients as well as overseas suppliers was also not carried out, he added.

According to Meghwal, RBI has taken various steps to stop recurrence of such instances.

These include putting in place comprehensive guidelines on handling of export/ import transactions to authorised dealer banks and "constitution of a working group to devise an Import Data Monitoring and Processing System," he said in a written reply.

Others measures are giving direction to ensure strict adherence with extant guidelines on export/imports, strengthening internal security/ system administration and continued follow up of all cases of advance remittance for import, irrespective of value.

The Minister also said steps are taken on priority basis "to upload shipment and realisation details and to convey the progress in special fortnightly reports".