RBI's draft trade norms envisage more discretion for ADs

ADs will handle the documents of a 'caution listed' exporter only against full advance payment from the buyer or irrevocable letter of credit

Last Tuesday, the Reserve Bank India (RBI) placed on its website, new draft regulations and directions for export and import of goods and services that will come into effect later, with amendments, if any, based on the feedback they get from the exporters, importers and authorised dealer banks (ADs).  
 

At first glance, what is striking is the brevity of the proposed regulations and directions. The draft regulation (872 words) is less than a quarter of the present export regulations (3,700 words). The proposed directions to ADs on exports and imports (2,284 words) is about a twelfth of