08/12/2020
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 the 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 realized, irrespective of the value of the export shipment, will provide 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 lockdown.
Similarly, a large number of cases will be closed by banks, providing a write-off of unrealized export value exceeding 10 percent 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.
