Question : PAYMENT TO OVERSEAS LAWYERS IN FOREIGN EXCHANGE



(a) whether the Government have decided to permit companies to carry out payments in foreign exchange to their Overseas lawyers and bankers;

(b) if so, the details thereof;

(b) whether Indian companies have been unable to firm up their loan agreements; and

(d) if so, details thereof?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI V. DHANANJAYA KUMAR)


(a), (b), (c) & (d) :- As per guidelines on External Commercial Borrowings (ECB), Indian Companies are permitted to make payments in foreign exchange to their overseas lawyers and bankers from out-of-pocket expenses and this is provided for as a part of ECB approvals. Operating and out-of-pocket expenses incurred for potential ECBs that do not result in loans, are allowed by Reserve Bank of India(RBI) as per prevailing RBI`s guidelines on current account transactions, subject to a cap.