Forex is a critical part of the travel industry, it needs concessions, changes to stay afloat: Forex companies

NEW DELHI: With travel and tourism companies taking a beating after the pandemic and subsequent blockade across the country, forex The companies, which fall under the category of essential travel items, are facing extreme stress when people began to cancel overseas travel plans, students returned home, and tourist tickets sold out.

India currency market , a crucial travel accessory and valued at around $ 60 billion annually, expects 2020 to be a year of laundering.

The entire Indian Association of Authorized Money Changers and Money Transfer Companies, regulated entities of the RBI, representing around 80% of the currencies. business across India have written to the Government of India demanding urgent Demand and cost side interventions to help the forex industry.

“In the case of travel business , focus tends ro remain on the more visible aspects of the industry like hotels and airlines. But foreign exchange is a crucial link too. Since we are staring at a bleak future this year, what we need, urgently, on the demand side is an e-KYC mechanism for issuing forex . This will allow the industry to work even without customers having to necessarily walk into our offices,” said Sudarshan Motwani, founder and CEO of online forex marketplace BookMyForex.

The industry, in its request to the government, also said that the Center should consider expanding the categories of services currently allowed under the remittance scheme. They have said that the maintenance of close relatives, gifts and donations should be added to the list.

However, donations are likely to be a controversial category as it poses multiple regulatory challenges.

Forex business have also demanded a reduction in GST from the current 18% to 12% of the taxable value of service, and urged the government to reduce the rate to an even lower 5% level Especially because the sector is unlikely to recover before 2 years, at least.

Stressing on the need for e-KYC and making a case for non-face-to-face, video KYCs applicable to all authorized persona for approving forex transactions, the industry body also said efforts should be made to reduce the burden of documentation under FEMA for both purchase and sale.