RBI moots rationalisation of norms for export, import transactions

The Reserve Bank of India (RBI) has proposed draft norms to rationalize regulations for export and import transactions under the Foreign Exchange Management Act (FEMA) to enhance ease of doing business and improve foreign exchange services. Exporters will be required to declare the full export value, which must be realized and repatriated to India within nine months from the shipment date for goods or invoice date for services. The draft also suggests placing exporters who fail to meet these obligations on a caution list, banning advance payments for gold and silver imports, and requiring banks to implement a policy for handling trade transactions. Comments on the draft are invited until September 1, 2024.