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09 Dec 2020

New RBI facilitation measures to encourage exports: FIEO

The discontinuation of automatic caution listing earlier and external trade facilitation measures recently has been a big supportive step by the Reserve Bank of India (RBI) to exporters, according to Sharad Kumar Saraf, president of the Federation of Indian Export Organisations (FIEO). He also welcomed the unchanged key rates and making RTGS system 24X7. He was reacting to the RBI’s bi-monthly policy released recently. Saraf said in a press release that the removal of the monetary ceiling in respect of direct dispatch of shipping documents to overseas buyers and regularising such cases, where export proceeds have been realised, irrespective of value of export shipment, will provide a great relief to exporters whose bills are pending in the Export Data Processing and Monitoring System (EDPMS). This also addresses the concern of those exporters who were forced to send the documents directly to buyers during the pandemic as courier services were not functioning in India due to lock down. Similarly, a large number of cases will be closed by banks, providing write off of unrealised exports value exceeding 10 per cent of previous calendar years exports, without referring to the RBI. This will save the transaction time of exporters, FIEO said. It was a long pending demand of exporters to permit set off export receivables against import payables when such goods are consigned to from their associate companies and accepting this demand in today’s announcement is a welcome step, added the FIEO president. Off late dispute was arising between the exporters and banks regarding refund of export proceeds, where the goods had perished/destroyed/auctioned as banks were insisting on imports of such material which was not pragmatic. Allowing refund in such cases, of course on submission of documentary evidence, will certainly settle the dispute.