ECONOMY
RBI puts out draft paper to rationalise export and import regulations
- IBJ Bureau
- Jul 03, 2024
The Reserve Bank of India (RBI) has proposed rationalisation of norms governing export and import transactions to promote ease of doing business and empower banks to deliver quicker and more efficient services to foreign exchange customers.
According to draft norms, every exporter should furnish a declaration specifying the amount of the full export value of the goods or services.
The amount representing the full export value of goods and services shall be realised and repatriated to India within nine months from the date of shipment for goods and date of invoice for services, the RBI has said.
This is a part of the draft regulations released by the central bank on Tuesday under the Foreign Exchange Management Act (FEMA) and directions to authorised dealer banks. It has sought comments by September 1, 2024.
The draft has proposed that the authorised dealer may place an exporter, who has not realised the full value of export within the time specified, in the caution list. An exporter who has been in caution listed can undertake export only against receipt of advance payment in full or against an irrecoverable letter of credit to the satisfaction of the authorised dealer.
The draft has said that no advance remittance for the import of gold and silver should be permitted unless specifically approved by the central bank.
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