The Reserve Bank on Friday announced further liberalisation in the extant policies governing certain export transactions by delegating more powers to banks with an aim to improve the ease of doing business for exporters.
The measures are related to direct dispatch of shipping documents, write-off of unrealised export bills, set-off of export receivables against import payables, and refund of export proceeds.
In his address post the Monetary Policy Committee’s meeting, RBI Governor Shaktikanta Das said the central bank has announced several measures to enhance export competitiveness, ease of doing business for exporters and minimise procedural delays.
Continuing with these efforts, he said, it has been decided to further facilitate external trade by delegating additional powers to Authorised Dealer banks to regularise cases of direct dispatch of shipping documents by the exporter, irrespective of the value of export shipment and write-off unrealised export bills without limits in specified circumstances.
“…these announcements may sound very complicated, but let me assure you that export sector and the exporters do know that what kind of ease of doing business it will facilitate and how it simplifies their day-to-day activities and operations,” Das said.
The governor said he was confident that the procedural changes being made will improve ease of doing business for exporters and “really help our exports sector”.
More powers will be delegated to banks to allow set-off of export receivables against import payables with overseas group/associate companies under certain conditions when both the export and import legs have taken place within the same calendar year.
Banks will get more powers to consider refund of export proceeds without insisting on import of goods which are perishable in nature or had been auctioned/destroyed by port/customs/health authorities/any other accredited agency in the importing country, subject to production of documentary evidence, Das said.
India’s exports fell 9 per cent to USD 23.43 billion in November 2020 on an annual basis due to a drop in shipments of segments such as petroleum products, engineering and chemicals.