Currency Repatriation Rules Notified

The directive has six articles and gives exporters three months to declare 95% of their hard currency from the time their customs export license has been issued, CBI’s website reported. Exporters can keep the remaining 5% for such costs as marketing, advertisement and overseas office expenses. Any extension of the three-month deadline has to be approved by the Ministry of Industries, Mining and Trade. Hard currency repatriation can be undertaken through imports by the exporter or a third party, repayment of foreign currency loans, sale of hard currency to banks or certified exchange bureaux or making foreign currency deposits in banks. The banks said any special services to exporters, including obtaining loans and commercial cards, is contingent upon them meeting their “foreign currency commitments”. After introducing strict forex controls in April, the government on August 6 eased foreign exchange rules and allowed exchange shops to resume work at open market rates. The latest move is intended to accelerate currency supply into the market, according to Financial Tribune.