From Executive Director, CLE
The Reserve Bank of India vide circular No. 10 dated 11th July 2022 has notified the settlement mechanism for exports and imports in Indian Rupees. This circular states the following
(a) Indian importers undertaking imports through this mechanism shall make payment in Indian Rupees (INR) which shall be credited into the Special Vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller /supplier.
(b) Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid the export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country.
The RBI circular further states that the export / import undertaken and under the rupee mechanism shall be subject to usual documentation and reporting requirements. Letter of Credit (LC) and other trade related documentation may be decided mutually between banks of the partner trading countries under the overall framework of Uniform Customs and Practice for Documentary Credits (UCPDC) and incoterms. Exchange of messages in safe, secure, and efficient way may be agreed mutually between the banks of partner countries. This mechanism also has provisions for receiving advance payments.
You are aware that the DGFT has issued Notification No. 15/2015-20 dated 1st July 2022 extending the time for submitting applications under Merchandise Exports from India Scheme (MEIS) for exports made in the period 01.09.20 to 31.12.20 upto 31.8.22. I would urge all members to utilize this opportunity and file their MEIS claims
With best regards,
R. Selvam, I.A.S.
Council for Leather Exports