RBI hikes limit for repatriation of export proceeds

In another notification,the RBI has made it mandatory for units in special economic zones (SEZs) to repatriate full value of exports. Earlier,there was no time limit for realisation of exports made by units in SEZs. In 2010,the RBI had issued stiff guidelines for settlement of export-related receipts through online payment gateways and allowed authorised dealers Category-1 banks to handle repatriation of export-related receipts by entering into standing arrangements with OPGSPs.

The limit then was $500. OPGSP should open a liaison office with the approval of the RBI before operationalising the arrangement.

The hike in repatriation limit will boost small-time exporters who display and sell their products or services on websites and enable foreign buyers to purchase online and pay through their credit cards or bank accounts.