EEPC India Welcomes RBI Steps on External Trade

Specific measures for facilitating banking and financial transactions by RBI would ease pressure on exporters, said EEPC India Chairman Mr Mahesh Desai, commenting on review of the credit policy by the central bank.

'' Specific measures like giving more powers to banks which are Authorised Dealers would help exporters in easing of transaction pressure, even as export finance continues to remain costly, " Mr Desai said, adding full transmission of the lower rates was not effected by banks.

In the monetary policy review, the RBI has announced certain key measures for exporters.

These include: Delegating additional powers to Authorised Dealer (AD) banks to (a) regularise cases of direct dispatch of shipping documents by the exporter irrespective of the value of export shipment; (b) write off unrealised export bills without limits in specified circumstances; (c) allow set-off of export receivables against import payables with overseas group/associate companies under certain conditions when both the export and import legs have taken place within the same calendar year; and (d) consider refund of export proceeds without insisting on import of goods which are perishable in nature or had been auctioned/destroyed by port/customs/health authorities/any other accredited agency in the importing country, subject to production of documentary evidence, as per the RBI policy document.

Mr Desai said, the exporters are battling multi-prong challenges. Refunds of GST have not been done in a smooth way and are locked in procedural hassles. The EEPC India has taken up with the issue with the Commerce Ministry, raising the same in the recent Board of Trade meeting as well.