The Reserve Bank of India (RBI) today extended the flexibility to exporters to repatriate their remittances up to a year, in the face of difficult business environment in world's developed markets.
The RBI had in June 2008, relaxed the norms for repatriation of payments to be received by exporters of goods and services. It allowed up to one year, instead of six months earlier, for such remittances.
The liberalised norms will continue till September 30, 2012, the RBI said in a notification.
"It has been decided to further extend by one year- from October 1, 2011 till September 30, 2012, the relaxation with respect to the period of realisation and repatriation to India, of the amount representing the full value of goods or software exported, from six months to 12 months from the date of export...," the RBI said.
Exporters welcomed the move, stating it would help them in marketing their products and services.
"Buyers are more attracted if the credit period is longer," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.
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He said the situation in major economies like the US and European Union is difficult.
"Around one-third of our exports go to advanced economies and buyers there are playing safe on account of the ongoing slowdown. RBI's decision to extend the relaxation has a lot to do with that," Sahai said.
India's merchandise exports aggregated $246 billion 11 and services,comprising mainly of IT and IT-enabled jobs shipped were valued at $131 billion in 2010-11.