RBI & Commerce Ministry Discuss Liberalisation Of FEMA For E-commerce Exports

New Delhi, Mar 15 (KNN) Director General of Foreign Trade (DGFT), Santosh Kumar Sarangi, revealed that the Commerce Ministry is engaged in discussions with the Reserve Bank of India (RBI) regarding the liberalisation of Foreign Exchange Management Act (FEMA) guidelines to facilitate e-commerce exports.

Speaking at the 1st Asia Pacific e-commerce policy summit organised by economic think tank ICRIER on Thursday, Sarangi highlighted recent meetings with the RBI officials, expressing optimism about forthcoming liberalisation in RBI guidelines within the next two to three months.

He stated, “A few days back we had a meeting with the entire team of RBI officials who deal with this. There is a lot of liberalisation which is coming in the RBI guidelines and we should be seeing the results in next two to three months with regard to ecommerce (export) policies.”

Sarangi underscored the significance of extending the time frame for realising payments in Business to Business (B2B) shipments, indicating the Commerce Department's efforts to collaborate with the RBI to liberalise guidelines for e-commerce exports.

Further elucidating on the current process, Sarangi explained the necessity of Electronic Bank Realisation Certificates (e-BRCs) generated against shipping bills for export realisation.

He mentioned ongoing efforts by the DGFT's team to work with the RBI to facilitate self-declaration based e-BRCs, enhancing ease of doing business for e-commerce players, particularly those dealing with numerous consignments of smaller values.

Presently, e-BRCs are uploaded on the DGFT system by banks upon the realisation of export payments. Sarangi emphasised the vital role of e-BRCs as proof of payment realisation for firms applying for benefits under Foreign Trade policy.

Sarangi also revealed collaborative efforts between the Commerce Department, the Department of Revenue, and the Department of Post to expedite e-commerce exports.

Key focus areas include designated zones ensuring accountability and responsibility, expediting clearance of consignments, and ensuring adequate warehousing facilities to meet consumer demand in real-time. Overall, concerted efforts involving various stakeholders aim to enhance policies impacting e-commerce.

(KNN Bureau)