An importer in India needs to remit foreign currency to a foreign supplier for goods purchased. Under the Foreign Exchange Management Act, 1999, the remittance can be made only through:

Section 3 of the Foreign Exchange Management Act, 1999, prohibits dealing in or transferring foreign exchange except through a person authorised under the Act. Section 10 defines an authorised person as an authorised dealer, money changer, off-shore banking unit or any other person specifically authorised by the Reserve Bank of India to deal in foreign exchange or foreign securities, and banks holding such authorisation are the usual conduit for import remittances. The Reserve Bank regulates the terms on which authorised persons transact. An ordinary banking licence under the Banking Regulation Act does not by itself confer authority to deal in foreign exchange, and no licence from the Central Government, SEBI or a clearing corporation substitutes for the Reserve Bank's authorisation.