The RBI directions seek to protect small and retail participants, such as small and medium enterprises (SMEs), ensuring that customised products are only offered to large, sophisticated, non-retail users, who are capable of managing attendant risks better.
RBI said that all payments related to IRD transactions of a non-resident may be routed through a rupee account of the non-resident or through a vostro account maintained with a bank in India. Image source: Reuters