K C Mehta & Co LLP’s Post

Banks should not hold up crediting exporters money due to the fault of ICEGATE Exporters have been facing challenges related to the non-fulfillment of export obligations (EO) against advance authorizations and EPCG authorizations issued between 2002 and 2007. While the government demands records dating back 15-20 years, exporters argue that they are only required to preserve records for 2-3 years from the date of redemption. The situation is exacerbated by discrepancies in the EDPMS system, where shipping bills are not reflected. Many exporters report similar issues, but some banks are withholding credits while others are not. If your bank is uncooperative, consider escalating the matter to higher authorities or even the RBI. The original article can be found on the blog #exports , #exportcompliance , #exportsuccess , #exportimport, #internationalmarketing #internationalbusiness , #globalcommerce, #globalbusiness, #globaleconomy #globaleconomy , #consultant, #consultancy #consultingservices

The Reserve Bank of India (RBI) has issued draft regulations and directions to Authorised Dealers Category-I banks (AD banks) on the export and import of goods and services on 2 July 2024 for public comments. The proposed regulations are a part of a larger push towards the ease of doing business and aim at empowering the AD banks, thus enhancing the efficiency in foreign exchange matters. However, certain proposed provisions in the draft regulations require further clarifications from the RBI and are expected to be addressed in the final regulations after feedback and suggestions from all stakeholders The RBI has sought comments and feedback on the draft proposals by 1 September 2024. Read more: https://bit.ly/3LfQlCp

The Reserve Bank of India on Tuesday released draft regulations to rationalise norms for export-import transactions, proposing discretionary powers for banks when it comes to a 'caution list' for exporters who fail to bring in foreign exchange on time. "Where an export amount is outstanding in EDPMS (export data processing and monitoring system) for a period of more than two years from the due date of realization (including extension of the period granted by authorised dealer bank, if any .. - - - #NiryatBusiness #Niryat #Global #Import #export #RBI #ExportImport #ForeignExchange #Regulations #Banking #TradeFinance #Exporters #EDPMS #IndianEconomy #FinancialRegulations #DraftRegulations

The Reserve Bank of India on Tuesday released draft regulations to rationalise norms for export-import transactions, proposing discretionary powers for banks when it comes to a 'caution list' for exporters who fail to bring in foreign exchange on time. "Where an export amount is outstanding in EDPMS (export data processing and monitoring system) for a period of more than two years from the due date of realization (including extension of the period granted by authorised dealer bank, if any .. - - - #NiryatBusiness #Niryat #Global #Import #export #RBI #ExportImport #ForeignExchange #Regulations #Banking #TradeFinance #Exporters #EDPMS #IndianEconomy #FinancialRegulations #DraftRegulations

Discover how cross-border payments are evolving! 🌐 The recent introduction of the Regulation of Payment Aggregator - Cross-Border (PA-CB) guidelines means entities managing international transactions now fall under direct RBI supervision. 💳 Expect notable changes in Indian business dynamics with the forthcoming RBI guidelines. Count on SabPaisa for a seamless cross-border transaction experience in harmony with the latest regulations. 🌏 #Payments #RBI #Guidelines #CrossBorder #Business #Import #Export #Regulations #PaymentGateway

The Federal Board of Revenue (FBR) has conducted an analysis revealing that the actual trade gap between Pakistan and China is estimated to be between US$2-3 billion, as opposed to the previously reported figure of US$7 billion. This adjustment is attributed to under-invoicing practices. #FBR #TradeGap #PakistanChinaTrade #UnderInvoicing #EconomicAnalysis 📊🌐

The Reserve Bank of India (RBI) is implementing new regulations for export and import transactions, with a focus on cross-border payment services provided by non-bank entities like payment aggregators (PAs). Key Updates: - Non-banks are required to obtain RBI authorization as payment system operators by April 30, 2024. - A minimum net worth of INR 15 crore at the time of application and INR 25 crore by March 31, 2026 is necessary for non-bank entities. - Compliance standards include customer due diligence, security assessments, and the maintenance of specific accounts for import/export transactions. These regulatory changes are designed to strengthen the security and compliance of cross-border payments. #RBI #CrossBorderPayments #PaymentAggregators #Compliance #Regulations

A Letter of Credit (LC) discounting is a financial service that allows exporters to receive immediate payment for goods or services sold, rather than waiting for the buyer to pay on the due date. There are two main types of LC discounting: 1. *Local LC Discounting*: - *Local LC* refers to a Letter of Credit issued by a bank in the same country as the seller (exporter). - *Process*: The exporter presents the LC to a local bank, which then pays the exporter the value of the LC minus a discount fee. The bank waits for the buyer to pay on the due date. - *Benefits*: Provides immediate cash flow to the exporter, reduces credit risk, and can be more cost-effective due to lower fees. 2. *Foreign LC Discounting*: - *Foreign LC* refers to a Letter of Credit issued by a bank in a different country than the seller (exporter). - *Process*: Similar to local LC discounting, but involves an international bank or the exporter’s local bank with international banking facilities. The bank pays the exporter the value of the LC minus a discount fee and then collects payment from the foreign bank. - *Benefits*: Helps exporters manage international trade risks, improves cash flow, and mitigates the risk of foreign exchange fluctuations. Both types of LC discounting are crucial in facilitating international and domestic trade by providing liquidity and reducing payment risks for exporters. www.loanbazaaronline.com https://lnkd.in/epcuDwM #Finance #loanservices #digitalmarketing #graphicdesigning #financialservices #startupfunding #FinancialAnalyst #loanbazaar #dsa #nbfc

RBI has released draft regulations and draft directions to simplify the exchange control regulations for import and export. A quick reading indicates: i) it seems even export of services will be covered under the prescribed declarations (which currently is typically limited to export of goods and software) – this will have a significant impact on service providers including law firms, bankers, consultants in India etc. who advise offshore clients; ii) enhanced roles and responsibilities given to the AD to determine compliance with the regulations and also consider exemptions in specific cases. The attempt to simplify the regulations is a welcome move. Comments can be shared with RBI by September 1, 2024. https://lnkd.in/guRA28qH #regulatoryupdates #RBI #FEMA #export #import #banks

Ministry of Finance Updates: CBIC initiates electronic disbursal of duty drawback amount directly to exporter’s bank accounts through PFMS from 5th June 2024 [PIB Dated June 5, 2024] In an effort to facilitate trade, Central Board of Indirect Taxes and Customs (CBIC) will electronically disburse duty drawback amount directly to exporter’s bank account in a transparent and efficient manner with effect from 5th June, 2024. The payment of duty drawback amounts into the exporters' accounts will be facilitated through the Public Finance Management System (PFMS) automatically. This is another initiative of the CBIC towards paperless Customs and enhanced trade facilitation. For details: https://lnkd.in/gtycHCfd