The RBI has proposed rationalizing regulations covering export and importtransactions to promote ease of doing business and enhance the efficiencyof banks serving foreign exchange customers. The draft, titled "Regulationof Foreign Trade under FEMA, 1999", requires exporters to declare the fullexport value of goods or services and ensures repatriation within 9months. Exporters who fail to meet this timeline may be caution listed andsubjected to stricter terms. Additionally, advance remittance for gold andsilver imports requires specific RBI approval. These measures aim tosupport small exporters and importers and empower authorised dealerbanks to provide quicker, more efficient services.
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