RBI unveils draft guidelines to ease export, import deals
Chandigarh, July 2
With an aim to rationalise export and import regulations under the Foreign Exchange Management Act (FEMA), the Reserve Bank of India (RBI) today released the draft guidelines, and invited feedback on the draft proposals from stakeholders by September 1.
9 NBFCs surrender licence to RBI
The RBI on Tuesday said nine non-banking financial companies, including Ujjivan Financial Services, have surrendered their certificate of registration to it. Some of the NBFCs are Vigfin Holdings, Strip Commodeal, Allium Finance, Eternite Finvest, and Fino Finance.
The proposed regulations are intended to promote ease of doing business, especially for small exporters and importers, an RBI communique said, while sharing the Statement on Developmental and Regulatory Policies of June 2024.
Notably, the proposed rationalisation aims to simplifying operational procedures thereby promoting ease of doing business for all the stakeholders. “They are also intended to empower authorised dealer banks to provide quicker and more efficient service to their foreign exchange customers,” the release added.
As per draft guidelines, every exporter shall furnish to the specified authority, specifying the amount representing the full export value of the goods or services. The exporter shall submit to the authorised dealer the documents pertaining to export, within twenty-one calendar days from the date of shipment in case of goods or from the date of invoice in case of services, the RBI said in a notification.
Also, the receipt of payments for export of goods and services shall be in the manner specified in the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, RBI said.
Also, 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. It can be extended if the authorised dealer give the reasons which are justified.
For export of goods or services on deferred payment terms or in execution of a turnkey project or a civil construction contract, the exporter shall, before entering into any such export arrangement, submit the proposal for prior approval of the Authorised Dealer, which shall consider the proposal in accordance with the rules/regulations/directions under FEMA.
