In an effort to provide flexibility to exporters in the realisation of export proceeds, the Reserve Bank has decided to discontinue the system-based automatic caution-listing of exporters.
Addressing a virtual press conference today, RBI Governor Shaktikanta Das said the decision will also empower exporters to negotiate better terms with overseas buyers. Stating that exports have been adversely affected due to the pandemic related contraction in demand, Mr. Das said the decision is likely to make the system more exporter-friendly and equitable.
As part of automation of the Export Data Processing and Monitoring System, the ‘Caution/De-caution Listing’ of exporters was automated in 2016. Accordingly, the exporters were to be caution-listed automatically, if any shipping bill against them remained outstanding for more than two years.
After contracting for six months in a row, India’s exports grew by 5.27 percent year-on-year to 27.4 billion dollars in September while the trade deficit narrowed to a three-month low of 2.91 billion dollars.