RBI decreases realization period for exporters from 12 to 9 months
Responding further to the increasing pressure on Current Account Deficit (CAD) due reduced exports and depreciation of rupee against dollar, the Reserve Bank of India has brought down the period of realization and repatriation for exporters of goods and software from 12 to 9 months with a view to increase foreign exchange inflows.
The period of realization 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 remains unaltered.
India’s exports reduced by 4.6% for the 2nd consecutive month to USD 23.79 billion in June 2013 compared to year ago interval.
The rupee has depreciated by over 12% against the dollar since the beginning of the fiscal. Central bank and capital markets regulator SEBI had to take unconventional measures to control the market.
Month: Current Affairs - July, 2013