RBI working on simplifying forex regulations: Deputy Governor

NEW DELHI: The Reserve Bank today said it is working with the government to simplify and liberalise procedures related to foreign exchange regulations to facilitate ease of doing business in the country.

"Reserve Bank of India in consultation with the Government of India, is working on simplifying, liberalising and rationalising the procedures relating to foreign exchange regulations, including the foreign direct investment, to facilitate ease of doing business," RBI Deputy Governor Harun R Khan said in a Town Hall meeting here today.

Replying to a question on media reports related to doing away with of the need to approach RBI on FDI related issues, Khan said, "Even at present, no approval is given by the Reserve Bank for receiving FDI in India. The applicants only have to submit certain documents for verification and record."

The Town Hall meeting was organised to spread awareness on recent developments in the area of foreign exchange. Exporters, bankers, consultants and members of public participated in the meeting.

Khan said that holding of Town Hall events is a step towards getting feedback from the stakeholders and simplifying the regulations relating to foreign exchange.

He also mentioned about the steps taken by RBI and the government to reduce the external sector vulnerabilities.