RBI reduces realisation period for exporters
PTI MUMBAI, July 22, 2013
The Reserve Bank of India on Monday brought down the period of realisation and repatriation for exporters of goods and software to nine months from earlier 12 months, a move which could shore up foreign exchange inflows.
Last November, the RBI had increased the time limit to bring in export earnings to 12 months, from six months at that time, in view of global slowdown.
However, said industry experts, because of the country’s worsening current account deficit (CAD) and the weakening of the rupee against the U.S. dollar, it has now shortened the timeframe to bring in the money.
“...it was decided, in consultation with the government to bring down the above stated realisation period from 12 months to nine months from the date of export valid till September 30,” the RBI said in a notification.
It further said the provisions in regard to period of realisation and repatriation to India of the full export value of goods or software exported by a unit situated in a special economic zone (SEZ) as well as exports made to warehouses established outside India remain unchanged.