Rupee trade: notification allowing exporters earning rupee to benefit from existing regimes

As India prepares to start a full-fledged rupee trade with Russia and also engages in talks with some other countries, such as the United Arab Emirates and Sri Lanka, for a similar deal, the Center is expected to issue a notification soon allowing exporters to take advantage of all existing export benefits, such as import duty refund schemes, even if they do not earn foreign currency, an official who follows the report said. ‘affair.

In addition, exporters, who have imported under various export obligation schemes, may be allowed to fulfill the Indian Rupee obligation against free foreign currency imports, if they have been exporting under of the rupee’s trading mechanism, the official said. activity area.

Should not be excluded

“To encourage exporters to participate in the rupee swap scheme, it is important to ensure that they are not excluded from the various existing schemes if they earn rupees. Notifications for the same are likely to be released very soon. The Ministry of Commerce, Ministry of Finance and RBI are in talks on this,” the official said.

In July this year, the RBI issued a circular authorizing invoicing, payment and settlement of exports and imports in Indian Rupees. The RBI said the idea was to promote growth in global trade with a focus on India’s exports and to support the global trading community’s growing interest in the Indian rupee. The move would serve the dual purpose of dealing with countries under Western sanctions such as Russia, which has been targeted by the US and EU for its continued aggression in Ukraine, as well as helping India. to overcome its problem of depletion of foreign exchange reserves. .

“Exporters, through various representations, have insisted on the need for clarity on the continuation of various schemes such as the Remission of Duties and Taxes on Exported Products (RoDTEP). They have also requested acceptance of the Indian Rupee export requirement for items imported under various schemes. The government is primarily of the view that these are valid expectations that need to be met,” he said.

India’s engagement with Russia for the establishment of a rupee-denominated trade facility is at an advanced stage, with the RBI having given approval to UCO Bank to open a special Vostro account with Russian bank Gazprombank. Two Russian banks, Sberbank and VTB Bank have already opened a special vostro account in their respective branches in Delhi, according to media reports.