Following renewed bilateral relations between the U.S.A and Cuba, the former has announced that it will ease restrictions on business and travel with the latter.

This is the latest move by President Barack Obama to improve relations with her North American neighbours.

The rules, which go into effect on Monday, relate to travel, telecom, internet-based services, business operations, banking and remittances.

US businesses will now be allowed to open up locations in Cuba.

Cuban President Raul Castro and US President Barack Obama discussed the move in a phone conversation on Friday.

The changes come as the US and Cuba normalise relations after 53 years.

"A stronger, more open US-Cuba relationship has the potential to create economic opportunities for both Americans and Cubans alike," said US Treasury Secretary Jacob Lew in a statement.

"By further easing these sanctions, the United States is helping to support the Cuban people in their effort to achieve the political and economic freedom necessary to build a democratic, prosperous and stable Cuba."

Authorised travellers will be permitted to open and maintain bank accounts in Cuba, senior administration officials said on Friday.

Close relatives will now be allowed to accompany authorised travellers going to Cuba for educational, journalistic, humanitarian or religious activities or research.

Officials said travel to Cuba for tourist activity is still prohibited by statute.

Image copyright AP Image caption US businesses will be able to open physical locations in Cuba and Americans w