The RBI on Tuesday proposed rationalising regulations that cover export and import transactions with an aim to promote ease of doing business and empower banks to provide more efficient service to their foreign exchange customers.
The central bank has issued ‘Regulation of Foreign Trade under Foreign Exchange Management Act (FEMA), 1999 – Draft Regulations and Directions’ in this regard.
As per the draft, every exporter should furnish to the specified authority a declaration specifying the amount representing 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,” it said.
The draft also proposes that an exporter who has not realised the full value of export within the time specified may be caution listed by the authorised dealer.
An exporter who has been 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.
According to the draft, no advance remittance for the import of gold and silver should be permitted unless specifically approved by the Reserve Bank of India.
The RBI said the proposed regulations are intended to promote ease of doing business, especially for small exporters and importers.
They are also intended to empower Authorised Dealer banks to provide quicker and more efficient service to their foreign exchange customers, the central bank said.
The RBI has sought comments on the draft regulations under FEMA and directions to authorised dealer banks by September 1.