Mumbai, Apr 5 (KNN) The Reserve Bank of India (RBI) on Friday issued a revised draft of regulations under the Foreign Exchange Management Act (FEMA), 1999, aimed at simplifying and streamlining export and import procedures to promote ease of doing business.
One of the key proposals states that exporters with unrealised export proceeds exceeding Rs 25 crore, pending for over two years from the due date, will only be allowed to carry out further exports if payments are made in full advance or backed by an irrevocable letter of credit.
In a significant move concerning precious metal imports, the RBI has proposed that authorised dealers shall not permit any advance remittance for importing gold or silver. This marks a shift in the approach to regulating such high-value transactions.
The central bank first issued a draft in July 2023. After reviewing public feedback and engaging in further discussions with stakeholders, it has now released a revised version for comments.
“The emphasis of revised regulations is on enhancing the ease of doing business and bringing all instructions onto a single document,” the RBI said in a statement.
Currently, directions to authorised dealers are issued separately; the proposed changes aim to consolidate them into a unified framework.
The RBI has invited public comments and suggestions on the draft regulations and directions until April 30, 2025.
This initiative is part of a broader effort to modernise India’s foreign trade regulations in alignment with evolving global business practices.
(KNN Bureau)
