What changed
RBI introduced a one-time measure for AD banks to close certain old export bills that were outstanding beyond specified periods. Previously, all such bills had to be reported half-yearly in Form XOS indefinitely. Now, eligible bills can be closed and removed from future XOS reporting after submission of a closure report.
What it means for you
Banks can clean up aged export bill portfolios without ongoing follow-up, reducing compliance burden. This helps in resolving legacy cases where recovery is impractical, but banks must ensure no pending litigation or enforcement action exists. The closure is a one-time opportunity, not a recurring facility.
What you must do
- Identify export bills outstanding beyond 15 years (up to USD 1 lakh) or beyond 5 years (up to USD 50,000) with untraceable customers as of Dec 31, 2012.
- Verify no pending civil/criminal suit, and no adverse notice from DoE, CBI, DRI, or similar agencies.
- Obtain proof of non-traceability from competent authority for the USD 50,000 category and ensure board-approved policy is in place.
- Close eligible bills and submit a report in the prescribed Excel format to the concerned RBI Regional Office.
- Stop reporting these closed bills in future XOS statements.
Who it affects
All Category-I Authorised Dealer Banks, Exporters with old outstanding bills, RBI Regional Offices handling XOS statements
What are the eligibility criteria for closing an old export bill under this circular?
The bill must not be subject to any pending civil or criminal suit, the exporter must not be on the adverse list of enforcement agencies like DoE, CBI, or DRI, and there should be no externalisation issues with the recipient country. Additionally, the bill must fall under either: (a) outstanding beyond 15 years as of Dec 31, 2012 with a ceiling of USD 1,00,000, or (b) outstanding beyond 5 years as of Dec 31, 2012 with a ceiling of USD 50,000 where the customer is untraceable (with proof).
What reporting is required after closing these bills?
AD banks must submit a report of closed cases to the concerned RBI Regional Office in an Excel sheet following the format provided in the circular's annex. After closure, these bills will not be reported in future Export Outstanding Statements (XOS).