Aiming to provide flexibility to exporters in realization of their export proceeds Reserve bank of India (RBI) discontinued the automatic caution-listing while simultaneously monitor the exports realisation through banks on Friday.
RBI introduced Export Data Processing and Monitoring System (EDPMS) in 2014 for all banks to bring their transactions with the exporters online.
The Federation of Indian Export Organisation (FIEO) has welcomed the RBI’s decision of discontinuation of automatic caution-listing of exporters. Sharad Kumar Saraf, President, FIEO thanked RBI for meeting the long pending demand of FIEO, for discontinuing the automatic caution-listing for exporters saying it was a threat, more so, since the outbreak of coronavirus as exporters were not in a position to approach banks physically to get exports realisation entries updated in the EDPMS Module.
FIEO Chief added that accepting the request to do away with automatic caution-listing will provide relief to exporters particularly since in a large number of cases the entries remain non-updated at the end of Authorised Dealer (AD) Banks due to numerous factors.
The responsibility will be on AD Banks to update exports remittance and if payment is not realised, to report the same to RBI for appropriate action. The new mechanism strikes a nice balance between the responsibilities of exporters and bankers while simultaneously ensuring that realisation of exports proceeds is constantly monitored.
FIEO President also said that the changes made in the EDPMS making it more user-friendly and equitable basing it on the case-specific recommendations of the AD banks will further bring ease in the working of the exporting community.
Hailing RBI’s Monetary Policy Statement 2020-21, the FIEO Chief said that the exporters appreciated the bank’s intent to enhance liquidity support for financial markets so as to revive activity in targeted sectors of the economy, besides providing a boost to exports sector.