Reserve Bank of India simplifies rules for exporters

In the case of exports where RBI has prescribed longer period of realisation, the facility would be available for exports prior to July 2003, but proceeds of which were due for realisation within the prescribed period of one year.

Exporters dealing with more than one authorised dealer (AD) can avail of this facility through each ad within the set limit, the central

bank said here.

However, exporters operating under a consortium of banks or with multiple banks would also have the option of computing the 10 per cent limit on an aggregate basis provided the lead bank or a nodal bank undertakes to verify the exporter’s annual performance, it added.

RBI said within a month from the close of the calendar year, exporters should submit a statement, giving details of export proceeds due, realised and not realised to the concerned AD. The AD should then verify the statement with his records and review the export performance of the exporter during the calendar year to ascertain that in cases where the 10 per cent limit of self extension, write-off and non-realisation has been breached, exporter has sought necessary approval before the end of the calendar year.

In cases where exporters have failed to comply with this requirement, the ad may promptly advise them to seek extension of time/reduction in invoice value/write-off in respect of non-realisation in excess of the 10 per cent limit, failing which, the ad may inform the exporter about the withdrawal of this facility within a month, under advice to the concerned regional office of RBI.