RBI proposes rationalisation of norms for India's exim transactions

Every exporter should furnish a declaration specifying the amount of the full export value of the goods or services, according to the Reserve Bank of India (RBI) draft norms.

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, RBI said.

The central bank sought comments on the draft by September 1 this year.

The authorised dealer may place an exporter who has not realised the full value of export within the time specified in the caution list, the draft proposed.

An exporter who has been in caution listed can export only against receipt of advance payment in full or against an irrecoverable letter of credit, to the satisfaction of the authorised dealer.

Advance payment for export of goods and services can be received according to the export contract. Rate of interest charged on the advance for export shall not exceed the all-in-cost ceiling of trade credit.

If the exporter is unable to meet the export obligation as per the contract terms, the advance received should be refunded immediately, the draft norms said. The authorised dealer could extend the time for the completion of the export obligation.

Banks should put in place a comprehensive, well-documented policy approved by its Board within six months of issuance of this circular for handling payment transactions related to export/import of goods and services, the central bank added. 

Fibre2Fashion News Desk (DS)