EEPC welcomes RBI reforms easing compliance for small exporters

Kolkata, Oct 3 (UNI) EEPC India today welcomed the Reserve Bank of India’s move to ease the Merchanting Trade Transaction (MTT) rules by extending the time period for outlay of foreign exchange from four to six months and simplifying the process for timely closure of entries in Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS) for transactions up to Rs 10 lakh per bill.

The move would significantly improve ease of doing business, especially for small exporters and merchants, EEPC India chairman Pankaj Chadha said.

“EEPC India welcomes the decision as it will significantly ease compliance burden for small exporters and provide flexibility to merchant traders,” he said.

“The reforms introduced by the RBI were long-pending demands of EEPC India. We welcome the decision and the circulars issued in this regard. The move is set to reduce compliance burden for MSME exporters and ensure procedural flexibility for traders,” Chadha opined.

The RBI circular extending the time period for outlay of foreign exchange to six months under the Merchanting Trade Transactions (MTT) framework has come into effect from October 1, 2025. The other circular regarding closure of entries in EDPMS and IDPMS is also effective immediately.

Under the new rule, entries (including outstanding entries) in EDPMS and IDPMS of value up to Rs 10 lakh can be reconciled and closed based on a declaration provided by the concerned exporter that the amount has been realised or by the importer that the amount has been paid.

Any reduction in declared value or invoice value of shipping bills/bills of entry shall also be accepted, based on the declaration by the concerned exporter or importer.

The circular states that Authorised Dealer Category–I banks (AD banks) shall not levy any penal charges for delays in adherence to regulatory guidelines.

RBI has taken several other noteworthy steps recently to boost trade. These include promotion of the Indian Rupee (INR) in the settlement of cross-border trade and setting reference rates for the rupee against currencies of major trade partners. The RBI has also announced that balances in Special Rupee Vostro Accounts (SRVA) may be invested in corporate bonds and commercial papers.

“All these measures would give a big push to trade and investment besides helping the Indian Rupee go global gradually,” Chadha said.

 

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