RBI Proposes Simplified Foreign Trade Regulations to Boost Business Efficiency

The RBI has proposed new regulations to streamline export and import transactions, aiming to enhance ease of doing business and empower banks to offer more efficient foreign exchange services. The draft regulations seek comments by September 1 and include measures for exporters to declare full export value and repatriate within nine months.

The Reserve Bank of India (RBI) has unveiled proposed regulations aimed at streamlining export and import transactions. This move seeks to improve ease of doing business and empower banks to offer more efficient foreign exchange services to their clients.

The central bank has released the 'Regulation of Foreign Trade under Foreign Exchange Management Act (FEMA), 1999 – Draft Regulations and Directions.' According to the draft, exporters must declare the full export value of goods or services to a specified authority and repatriate it to India within nine months.

Additionally, exporters failing to realize full export value within the specified time could be caution-listed by authorized dealers, restricting them to advance payment or irrevocable letters of credit. The draft prohibits advance remittance for gold and silver imports without RBI approval and seeks public comments by September 1.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)