What changed
The earlier relaxation allowing 12 months (instead of 6 months) for export proceeds realisation, which expired on Sep 30, 2012, has been extended from Oct 1, 2012 to Mar 31, 2013. No changes for SEZ units or exports to overseas warehouses.
What it means for you
Exporters get continued breathing room to bring back earnings within a year, easing working capital pressure. Banks must update their compliance monitoring systems for the extended window. The temporary nature signals RBI may review again post-March 2013.
What you must do
- Update internal systems to reflect the extended realisation period up to March 31, 2013.
- Notify all export customers about the continued 12-month window for proceeds repatriation.
- Ensure SEZ and overseas warehouse export transactions continue to follow existing rules unchanged.
- Monitor expiry date and prepare for possible further extension or reversion to 6 months.
Who it affects
AD Category-I banks, Exporters of goods and software, Units in Special Economic Zones (SEZs) – indirectly, as rules unchanged
Does this extension apply to SEZ units?
No, the provisions for SEZ units and exports to overseas warehouses remain unchanged as per earlier circulars.
What was the previous deadline for this relaxation?
The 12-month realisation period was earlier available only up to September 30, 2012.
What happens after March 31, 2013?
The circular does not specify; banks should watch for further RBI guidance as the extension is temporary.