The Reserve Bank on Friday came out with revised draft regulations that cover export and import transactions under FEMA with an aim to promote ease of doing business. As per the revised draft, if the export proceeds of an exporter remain unrealised for a period beyond two years from the due date and the cumulative unrealised export proceeds of that exporter exceeds Rs 25 crore, he shall undertake further exports only against receipt of full advance or an irrevocable letter of credit.
On import of gold and silver, the RBI has proposed that no advance remittance for the import of gold and silver shall be permitted by an authorised dealer, said the ‘Regulation of Foreign Trade under Foreign Exchange Management Act (FEMA), 1999 — Draft Regulations and Directions’.
In July last year, the RBI had issued the draft, and based on the feedback received from the public and subsequent further consultations with various stakeholders, the proposed regulations and directions have been further revised.
“The emphasis of revised regulations is on enhancing the ease of doing business and bringing all instructions onto a single document,” the RBI said.
The proposed regulations incorporate instructions issued to authorised dealers, including the processes to be followed by the authorised dealers for handling transactions related to export and import, which are at present issued separately as directions to authorised dealers.
The central bank has sought comments and feedback on the draft regulations and directions by April 30, 2025.
