Remittance Norms Eased For Exporters

The Reserve Bank of India (RBI) has raised the limit for inward remittance of export earnings in foreign currency for specific categories of exporters. These exporters will now be allowed to remit up to 70 per cent of their foreign currency earnings in their exchange earners foreign currency (EEFC) accounts.

Exporters represented by the Federation of Indian Exporters Organisation and other bodies, has been persistently requesting the RBI to raise the limit for inward remittances from 50 per cent to 100 per cent. The increase to 70 per cent is being seen as a step in that direction.

The step will ease exporters access to foreign currency funds as very few procedures have to be followed to deposit and withdraw funds from EEFC accounts. Since exporters will be free to hold funds in foreign currency, they will face relatively few procedural hassles in case they need to make payments in foreign currency.

 

The exporting units that can avail of this benefit include 100 per cent export-oriented units (EOUs) and units located in export processing zones (EPZs), software technology parks (STPs) and electronic hardware technology parks (EHTPs).

The RBI has also said that in terms of the latest Exim policy, supplies made to units in domestic tariff areas (DTA) by EoUs, EPZs, EHTPs, and STPs, against payment in foreign exchange will be deemed sales towards fulfilment of export obligation.