RBI Revised FEMA Draft on Exports and Gold Imports
Why in the news
The RBI issued revised draft FEMA rules for cross-border trade, balancing easier business with tighter safeguards.
Key facts
| Area | Proposal | Who is affected |
|---|---|---|
| Export proceeds | Unrealised beyond two years and cumulatively above ₹25 crore: further exports only against 100% advance or irrevocable LC | Exporters |
| Gold and silver imports | No advance remittance | Importers, authorised dealers |
Purpose
- Clearer rules and timely realisation of export earnings.
- Stop misuse of trade channels in precious metals.
- Match global best practices.
Impact
- Exporters with big dues must review risk management.
- Bullion importers must rely on post-shipment payments.
Exam angle
- Law: Foreign Exchange Management Act (FEMA).
- Threshold: ₹25 crore and two years.