12th August 2021

To All Members,

Sub: Information needed from members regarding problem being faced by them in making Refund of advance foreign exchange payments received from foreign tour operators/clients

Dear Friends,

We were given to understand by some of our members that they are facing problems in making refund of advance payments which  they have received in foreign exchange from their foreign tour operators/clients for the bookings which were cancelled due to Covid -19 and foreign tourists could not travel to India.

The reason given by the banks to our members was that after one year they cannot refund the money without the approval of RBI and it takes  4-5 months to get approval from RBI.

 

IATO therefore approached Chairman, Reserve Bank of India and requested him to ease the policy for making refunds to our foreign tour operators/clients  by removing this clause of RBI approval and all banks be authorised to make refund without RBI approval as they have been doing normally like other refunds (within one year of receipt of payments).

We have received reply from Foreign Exchange Department, Reserve Bank of India asking us to share details of such cases with the details and the names of banks involved to examine the matter and issue necessary instructions/clarifications in required.

Members who are facing any such problem in making refund of foreign exchange to their clients are required to submit the following information to IATO by Saturday, the 14th August 2021.

  1. Name of the Company
  2. Name of the bank with address
  3. Reference/Bank acknowledge receipt if any for refund
  4. Amount to be refunded

Please share the above information definitely by Saturday, the 14th August 2021 on email id operations@iato.in, iato.circulars@gmail.com

 

Thanking you and with best regards,

 

 

Rajnish Kaistha

Hony. Secretary