RBI proposes regulations on export, import transactions

Mumbai: The Reserve Bank on Friday came out with revised draft regulations that cover export and import transactions under FEMA with an aim to promote ease of doing business.

As per the revised draft, if the export proceeds of an exporter remain unrealised for a period beyond two years from the due date and the cumulative unrealised export proceeds of that exporter exceeds Rs 25 crore, he shall undertake further exports only against receipt of full advance or an irrevocable letter of credit.

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 dealer, said the ‘Regulation of Foreign Trade under Foreign Exchange Management Act (FEMA), 1999 — Draft Regulations and Directions’.