RBI's draft trade norms envisage more discretion for ADs

Last Tuesday, the Reserve Bank India (RBI) placed on its website, new draft regulations and directions for export and import of goods and services that will come into effect later, with amendments, if any, based on the feedback they get from the exporters, importers and authorised dealer banks (ADS).

- TNC RAJAGOPALAN

At first glance, what is striking is the brevity of the proposed regulations and directions. The draft regulation (872 words) is less than a quarter of the present export regulations (3,700 words). The proposed directions to ADs on exports and imports (2,284 words) is about a twelfth of the current master directions for exports of goods and services (16,122 words) and imports of goods and services (10,828 words) put together. Exporters and importers who are used to detailed RBI guidelines will now have to await the guidelines from the ADS, who have been asked to put in place a comprehensive, well-documented policy as approved by their Board of Directors within six months for handling payment transactions related to export/import of goods and services and merchanting trade.