AEPC welcomes easing export remittance rules by RBI

New Delhi, Dec 7 (KNN) Apparel Export Promotion Council (AEPC) has welcomed Reserve Bank of India’s (RBI) decision to liberalise the rules for writing off unrealized export bills saying it is a big relief to the exporting community.

“RBI’s move to simplify its procedures for writing off unrealized export bills particularly during the prevailing circumstances has come as a big relief to the exporters who had anyway invested in the consignments that gave no return,” said Chairman Dr A Sakthivel.

The Chairman, in a letter to RBI Governor Shaktikanta Das, thanked the central bank for permitting Authorised Dealer (AD) banks to write off unrealized export bills of any amount, which earlier was allowed only up to a certain limit beyond which the AD bank had to approach RBI for approval.

“We also welcome the decision to allow AD banks to regularize cases of direct dispatch of shipping documents by the exporter irrespective of the value of export shipment, and to set off export receivables against import payables with overseas group/ associate.

“Further, the AD banks have also been allowed to consider refund of export proceeds (due to poor quality of goods exported) without insisting on import of goods, which are perishable in nature or had been auctioned or destroyed by an authorized agency in the importing country.

“These changes have been done with the aim of simplifying the procedure, reducing the time taken for getting approvals and thereby reducing the regulatory cost. These measures will be very helpful for the large number of cases where exporters have been suffering from non-realization of export proceeds due to bankruptcy and insolvency.

“In fact, these measures recognize the growing need for addressing the increased risk in global business and need for timely redressal against such exposures in exports. More powers to AD banks will quicken the approval process, improve ease of doing business and enhance our export competitiveness,” Dr Sakthivel said.