As informed earlier on 9th October 2020, the RBI Governor had announced the Monetary Policy Committee (MPC)'s decisions and also announced a host of new measures to be undertaken by the central bank. From Exports point of view, it was announced that the system-based automatic Caution Listing of Exporters has been withdrawn/reviewed to make the process exporter-friendly and equitable.
In continuation of the same, the Reserve Bank of India (RBI) has now issued Circular vide ref no. RBI/2020-2021/50 A.P. (DIR Series) Circular No.03 dated October 09, 2020 regarding Export Data Processing and Monitoring System (EDPMS) Module for ‘Caution/De-caution Listing of Exporters’ – Review.
In this connection, attention of Authorized Dealer Category – I banks (AD banks) is invited to Para 3.1 of the APDIR Circular No. 74 dated May 26, 2016 on the Module for ‘Caution/ De-caution Listing of Exporters’ in the EDPMS.
The extant procedure as laid down in the above para has since been revisited and it has been decided to withdraw the existing para 3 (1) (i) and 3 (1) (ii) with a view to make system more exporter friendly and equitable.
Under the revised procedure, an exporter would be caution-listed by the Reserve Bank based on the recommendations of the AD bank concerned, depending upon the exporters track record with the AD bank and investigative agencies. The AD bank would make recommendations in this regard to the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank in case the exporter has come to the adverse notice of the Enforcement Directorate(ED) / Central Bureau of Investigation (CBI) / Directorate of Revenue Intelligence (DRI) /any such other law enforcement agency and/or the exporter is not traceable and/or is not making sincere efforts to realize the export proceeds.
Similarly, the AD bank would also make recommendations to the Regional Office of the Reserve Bank for de-caution-listing an exporter as per the laid down procedure. The procedural aspects on handling of shipping documents of the caution-listed exporters by the AD banks, as outlined in Para 3.2 of the circular, remain unchanged.
Members are requested to take note of above said RBI Circular on Review of Automatic EDPMS System which will help the concerned exporters. The said circular is available for reference on below link:-
Feed-backs, if any, may also be sent on id’s email@example.com, firstname.lastname@example.org, email@example.com and firstname.lastname@example.org for records/taking it further, if required.
(S. G. BHARADI)