The Reserve Financial institution on Friday got here out with revised draft laws that cowl export and import transactions below FEMA with an intention to advertise ease of doing enterprise.
As per the revised draft, if the export proceeds of an exporter stay unrealised for a interval past two years from the due date and the cumulative unrealised export proceeds of that exporter exceeds Rs 25 crore, he shall undertake additional exports solely in opposition to receipt of full advance or an irrevocable letter of credit score.
On import of gold and silver, the RBI has proposed that no advance remittance for the import of gold and silver shall be permitted by an authorised seller, stated the ‘Regulation of International Commerce below International Change Administration Act (FEMA), 1999 — Draft Laws and Instructions’.
In July final 12 months, the RBI had issued the draft, and primarily based on the suggestions obtained from the general public and subsequent additional consultations with numerous stakeholders, the proposed laws and instructions have been additional revised.
“The emphasis of revised laws is on enhancing the benefit of doing enterprise and bringing all directions onto a single doc,” the RBI stated.
The proposed laws incorporate directions issued to authorised sellers, together with the processes to be adopted by the authorised sellers for dealing with transactions associated to export and import, that are at current issued individually as instructions to authorised sellers.
The central financial institution has sought feedback and suggestions on the draft laws and instructions by April 30, 2025.
