The Reserve Bank of India vide its notification dated 4th December 2020 with a view to further enhance the ease of doing business and quicken the approval process, has decided to delegate more powers to the Authorised Dealer Category – I banks on direct dispatch of shipping documents, write-off of unrealised export bills, set-off of export receivables against import payables, and refund of export proceeds.
The AD banks have been allowed to regularise cases of dispatch of shipping documents by the exporter direct to the consignee or his agent resident in the country of the final destination of goods, up to USD 1 million or its equivalent per export shipment.
The AD bank shall ensure that the exporter seeking write-off has submitted documentary evidence towards surrendering of proportionate export incentives, if any, availed of in respect of the relative export bill.
Presently, AD banks are allowing exporters/importers to set-off their outstanding export receivables against outstanding import payables from/to the same overseas buyer/supplier. The Bank has been receiving requests from AD banks, on behalf of their Importer/Exporter constituents, for allowing such set-off with their overseas group/associate companies either on net basis or gross basis, through an in-house or outsourced centralised settlement arrangement. Accordingly, it has been decided to delegate powers to AD banks to also consider such requests of set-off.
