The Reserve Bank on Friday released revised draft regulations covering export and import transactions under FEMA, aiming to promote ease of doing business.
As per the revised draft, if an exporter’s proceeds remain unrealised beyond two years from the due date and the cumulative unrealised export proceeds exceed ₹25 crore, further exports shall be undertaken only against full advance payment or an irrevocable letter of credit.
On the import of gold and silver, the RBI has proposed that no advance remittance shall be permitted by an authorised dealer, as per the Regulation of Foreign Trade under Foreign Exchange Management Act (FEMA), 1999 — Draft Regulations and Directions.
In July last year, the RBI had issued a draft, and based on public feedback and further consultations with stakeholders, the proposed regulations and directions have been 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 for handling export and import transactions, which are currently issued separately as directions.
The central bank has invited comments and feedback on the draft regulations and directions by April 30, 2025.
Source from: https://www.moneycontrol.com/news/business/rbi-proposes-regulations-on-export-import-transactions-12985607.html
