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MUMBAI, Jan. 28

IN a move that will enable exporters to give credit to overseas buyers for a longer time, the Reserve Bank of India has permitted authorised dealers to extend the period of realisation beyond six months from the date of export for amounts up to $1,00,000.

However, exporters must submit a declaration that they will realise the export proceeds during the extended period.

The extension may be granted up to three months at a time and while considering the extension beyond one year from the date of export, the total export outstanding should not be more than 10 per cent of the average of export realisations during the preceding three financial years, said an RBI press release.

The ceiling of $1,00,000 will not apply where exporters have filed suits against the importers abroad. In such cases, the extension may be granted up to six months at a time, irrespective of the amount involved.

For cases where the export invoices are under investigation by the Enforcement Directorate or the Central Bureau of Investigation, or other investigating agencies and where the invoice value exceeds $1,00,000, it would require prior approval of the RBI.

The cases that are not covered by these instructions would also require prior approval from the RBI, the release said.

At present, exporters who have not realised and repatriated the proceeds of exports within six months from the date of export have to obtain approval of the RBI for extension of the period of realisation, the release said.

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