What changed
RBI issued a comprehensive Master Circular that consolidates all existing instructions on export of goods and services under FEMA, replacing multiple earlier circulars. The circular includes a sunset clause, meaning it will stand withdrawn on July 1, 2013, and be replaced by an updated version.
What it means for you
Banks now have a single reference document for export-related compliance, reducing the need to track multiple circulars. The sunset clause ensures regular updates, keeping guidelines current. AD banks must align their internal processes with this consolidated framework to avoid regulatory gaps.
What you must do
- Update internal manuals and training materials to reference this Master Circular as the primary source for export guidelines.
- Ensure all staff handling export transactions are familiar with the consolidated procedures, especially GR/SDF/PP/SOFTEX forms and follow-up of overdue bills.
- Monitor the sunset date (July 1, 2013) and prepare for the next updated circular to maintain compliance continuity.
- Review operational guidelines for advance payments, consignment exports, and write-offs to align with the circular's provisions.
Who it affects
All Category-I Authorised Dealer Banks, Exporters and their authorised representatives, Branches handling export bills and foreign currency accounts
What is the purpose of this Master Circular?
It consolidates all existing FEMA instructions on export of goods and services into one document for easier reference by AD banks and exporters.
Does this circular introduce new rules?
No, it consolidates existing instructions. No new rules are introduced; it merely brings together all prior circulars on the subject.
What happens after the sunset date?
The circular will stand withdrawn on July 1, 2013, and be replaced by an updated Master Circular, ensuring guidelines remain current.