The Reserve Bank has announced a slew of measures for exporters to tide over challenges that they may be facing due to global uncertainties in trade. 

In the Statement on Developmental and Regulatory Policies issued today, RBI said it will shortly issue guidelines to increase the period for the forex outlay from four months to six months, in case of Merchanting Trade Transactions. RBI said this relaxation is expected to help Indian merchants overcome the challenges they face in completing their business transactions efficiently while maintaining profitability.  

 

The apex bank has further decided to extend the time period for repatriation from foreign currency accounts of Indian exporters in Indian Financial System Code- IFSC, from one month to three months. According to the RBI, this move will encourage Indian exporters to open accounts with IFSC Banking Units and also increase forex liquidity in IFSC. 

Additionally, RBI has decided to simplify the process of reconciliation in Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS).With a view to ease compliance for exporters/importers, especially of small value goods and services, RBI has said that bills can now be reconciled and closed based on a declaration by the concerned exporter or importer that the amount has been realised for entries of value equivalent to ten lakh rupees per bill. 

 

 

Further, with a view to rationalise and simplify the regulations governing External Commercial Borrowings – ECB, a revised framework will be issued shortly to allow expansion of eligible borrower and recognized lender base, rationalization of borrowing limits, rationalization of restrictions on average maturity period, removal of restrictions on the cost of borrowing for ECBs, review of end-use restrictions and simplification of reporting requirements.