RBI to issue SOP for banks to expedite rupee trade

New Delhi, July 17, 2023 

To tide over the hiccups faced by exporters in the rupee-based trading mechanism for foreign trade, the Reserve Bank of India (RBI) is expected to issue a standard operating procedure for banks to issue proofs of inward remittances for exporters expeditiously, a top government official said.

“There were some initial teething problems with the rupee-trading mechanism, but transactions have started happening in many areas, although we are not sure of the figures at this point,” the senior Commerce Ministry official said.

On reports of some Indian oil firms paying Russia in Chinese Yuan to meet their import bills, the official explained that there is no bar on traders using any currency to make international payments even as the government is keen on promoting rupee-based trade with more countries.

“There were some exporters who had approached us that the FIRC (Foreign Inward Remittance Certificate) from one bank was not being sent to the other, because of which e-BRCs were not getting generated,” he said.

Electronic bank realisation certificates or e-BRCs are issued by banks to exporters as a proof of payment that validates their exports and makes them eligible for any benefits under the Foreign Trade Policy.

“We had taken this up with the RBI and it is in the process of issuing a detailed SOP (Standard Operating Procedure) to all the banks so that e-BRC generation happens in a timely manner. The SOP has been vetted by us and the RBI should be releasing it for the banks in the next few days,” he noted.

[The Hindu]