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RBI/2006/371
A.P. (DIR Series) Circular No. 31
April 21, 2006
To
All Banks Authorised to Deal in Foreign Exchange
Madam / Sirs,
Export of Goods and Services – Extension of period
of realization
Attention of Authorised Dealer (AD) banks is
invited to AP(DIR
Series) Circular No.20 dated January 28, 2002, in terms of which AD banks
have been permitted to grant extension of time for realization of export proceeds
beyond the prescribed period from the date of export, where invoice value does
not exceed US$ 100,000 subject to the conditions prescribed therein.
2. As a measure of further liberalization,
it has now been decided to increase the invoice value limit to US$ 1 million
from existing US$ 100,000 with immediate effect. Accordingly, AD banks
may henceforth grant extension of time for realization of export proceeds beyond
prescribed period from the date of export up to the invoice value of US$ 1 million
subject to existing terms and conditions.
3. AD banks may bring the contents of this
Circular to the notice of their constituents concerned.
4. The directions contained in the Circular
have been issued under Section 10(4) and Section 11(1) of Foreign Exchange Management
Act, 1999 (42 of 1999) and without prejudice to permissions/approvals, if any,
required under any other law.
Yours faithfully,
(M. Sebastian)
Chief General Manager
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