RBI SAYS NO MORE ROUTING OF COLLECTIONS FROM ONLINE TICKET SALES DIRECTLY TO OVERSEAS BANK ACCOUNTS

The Reserve Bank of India has said that foreign airlines cannot route collections from online tickets sales in India directly to foreign bank accounts. At present, some airlines give Indian passengers the option to buy tickets online with the option to make payments in a foreign currency. The Indian central bank has been allowing Indian cardholders to make small purchases through international credit cards. However, in case of airfares, RBI has pointed out that under the Foreign Exchange Management Act 2000, foreign airlines can repatriate ticket proceeds through their agents in India after payment of the local expenses and applicable