RBI issues draft norms to rationalise export-import transactions

The Reserve Bank of India on Tuesday released draft regulations to rationalise norms for export-import transactions, proposing discretionary powers for banks when it comes to a 'caution list' for exporters who fail to bring in foreign exchange on time.

"Where an export amount is outstanding in EDPMS (export data processing and monitoring system) for a period of more than two years from the due date of realization (including extension of the period granted by authorised dealer bank, if any), AD banks shall ensure that exporter is flagged as 'caution listed' in the EDPMS," the RBI said in the draft regulations and directions.

The draft regulations, which are under the Foreign Exchange Management Act (FEMA), are available for public response and feedback may be forwarded to the RBI via email by September 1, the central bank said.


The RBI said that the proposed regulations are intended to promote ease of doing business, especially for small exporters and importers, while empowering authorised dealer banks to provide quicker and more efficient services to foreign exchange customers.

It said while flagging an exporter as 'caution listed', banks must duly inform exporters and that they must be given the opportunity to be heard.