RBI extends remittance flexibility to exporters

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SME Times News Bureau | 02 Nov, 2011
The Reserve Bank of India (RBI) Tuesday extended the flexibility to exporters to repatriate their remittances upto a year.

The liberalised norms will continue till September 30, 2012, RBI said in a notification. "It has been decided to further extend by one year- from October 1, 2011 till September 30, 2012, the relaxation with respect to the period of realisation and repatriation to India, of the amount representing the full value of goods or software exported, from six months to 12 months from the date of export...," RBI said.

The RBI had in June 2008, relaxed the norms for repatriation of payments to be received by exporters of goods and services. It allowed upto one year, instead of six months earlier, for such remittances.

Reacting to the central bank's move to help exporters in the face of the ongoing economic turmoil in Europe and the US, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said, "Buyers are more attracted if the credit period is longer."

"Around one-third of our exports go to advanced economies and buyers there are playing safe on account of the ongoing slowdown. RBI's decision to extend the relaxation has a lot to do with that," Sahai said.