¨
RBI has introduced
several measures to support exporters amid global trade uncertainties.
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New guidelines will soon
be issued by RBI to extend the forex outlay period for Merchanting Trade
Transactions from four to six months.
¨
This extension will help
Indian merchants manage transactions more efficiently and maintain
profitability.
¨
The repatriation period
for funds in foreign currency accounts within IFSC Banking Units has also been increased
by RBI from one month to three months.
¨
This will encourage
exporters to open IFSC accounts and boost forex liquidity there.
¨
The reconciliation
process in the Export Data Processing and Monitoring System (EDPMS) and Import
Data Processing and Monitoring System (IDPMS) will also be simplified by the
RBI.
¨
For bills up to ten lakh
rupees, exporters and importers can now close bills by submitting a declaration
that payment has been received.
¨
A revised framework for
External Commercial Borrowings (ECB) is being prepared to make regulations
clearer and easier to follow.
¨
The new ECB rules will
expand the list of eligible borrowers and recognized lenders.
¨
They will also relax
borrowing limits and ease restrictions on the average maturity period.
¨
Restrictions on borrowing
costs for ECBs will be removed. End-use restrictions for ECBs will be reviewed.
¨
The reporting
requirements for ECBs will also be simplified under the updated framework.
