RBI issues draft guidelines to rationalise export, import regulations under FEMA

Reserve Bank of India

The Reserve Bank of India (RBI) on July 2 released the draft guidelines to rationalise export and import regulations under the Foreign Exchange Management Act (FEMA) and has invited public feedback by September 1.

The proposed regulations are intended to promote ease of doing business, especially for small exporters and importers, the central bank said in a release, while sharing the Statement on Developmental and Regulatory Policies of June 2024.

“They are also intended to empower Authorised Dealer banks to provide quicker and more efficient service to their foreign exchange customers,” the release added.

As per notification, every exporter have furnish to the specified authority, specifying the amount representing the full export value of the goods or services.

The exporter shall submit to the Authorised Dealer the documents pertaining to export, within twenty-one calendar days from the date of shipment in case of goods or from the date of invoice in case of services, RBI said in a notification.

The receipt of payments for export of goods and services shall be in the manner specified in the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, RBI said.

Provided further that Authorised Dealer may, for reasonable and sufficient cause shown by the exporter, and on being satisfied that such cause is justifiable, extend the specified period, RBI said.