**Summary:**
This circular, A.P. DIR Series Circular No. 03, issued by the Reserve Bank of India (RBI) on October 9, 2020, revises the procedure for caution-listing and de-caution-listing exporters under the Export Data Processing and Monitoring System (EDPMS) module. The changes aim to make the system more exporter-friendly and equitable.
Key changes include:
* Withdrawal of existing Para 3.1 (i) and 3.1 (ii) of APDIR Circular No. 74 dated May 26, 2016, which previously outlined the caution/de-caution listing procedures.
* Under the revised procedure, the RBI will caution-list exporters based on recommendations from their Authorised Dealer (AD) banks.
* AD banks will recommend caution-listing to the Regional Office of the Foreign Exchange Department of the RBI if the exporter:
* Has come to the adverse notice of enforcement agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), or Directorate of Revenue Intelligence (DRI).
* Is not traceable.
* Is not making sincere efforts to realize export proceeds.
* AD banks will also make recommendations to the Regional Office of the RBI for de-caution-listing exporters as per the laid down procedure.
* The procedural aspects regarding the handling of shipping documents of caution-listed exporters by AD banks, as outlined in Para 3.2 of APDIR Circular No. 74 dated May 26, 2016, remain unchanged.
* Master Direction number 16/2015 dated January 1, 2016, is being updated to reflect these changes.
The directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999).
AD banks are instructed to bring the contents of this circular to the notice of their concerned constituents.
The issuing authority is the Reserve Bank of India (www.rbi.org.in). Ajay Kumar Misra, Chief General Manager-in-Charge, is the contact person.
Key Entities Referenced
Reserve Bank of India: The central bank of India and the issuer of this circular.
Export Data Processing and Monitoring System: A system related to monitoring export data, specifically the module for caution/de-caution listing of exporters.
Authorised Dealer Category I banks: Banks authorized to deal in foreign exchange.
Foreign Exchange Department of the Reserve Bank: A department within the Reserve Bank of India.
Enforcement Directorate: A law enforcement agency in India investigating economic crimes and foreign exchange violations.
Central Bureau of Investigation: The premier investigating agency of India.
Directorate of Revenue Intelligence: An Indian intelligence agency responsible for combating smuggling.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2020-2021/50
A.P. (DIR Series) Circular No.03 October 09, 2020
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Export Data Processing and Monitoring System (EDPMS) Module for ‘Caution/De-
caution Listing of Exporters’ - Review
Please refer to Para 4 of Statement on Development and Regulatory Policies issued on
October 9, 2020. In this connection, attention of Authorised Dealer Category – I banks (AD
banks) is invited to Para 3.1 of the APDIR Circular No. 74 dated May 26, 2016 on the Module
for ‘Caution/ De-caution Listing of Exporters’ in the EDPMS. The extant procedure as laid
down in the above para has since been revisited and it has been decided to withdraw the
existing para 3 (1) (i) and 3 (1) (ii) with a view to make system more exporter friendly and
equitable.
2. Under the revised procedure, an exporter would be caution-listed by the Reserve Bank
based on the recommendations of the AD bank concerned, depending upon the exporters
track record with the AD bank and investigative agencies. The AD bank would make
recommendations in this regard to the Regional Office concerned of the Foreign Exchange
Department of the Reserve Bank in case the exporter has come to the adverse notice of the
Enforcement Directorate(ED) / Central Bureau of Investigation (CBI) / Directorate of Revenue
Intelligence (DRI) /any such other law enforcement agency and/or the exporter is not traceable
and/or is not making sincere efforts to realise the export proceeds.
3. Similarly, the AD bank would also make recommendations to the Regional Office of the
Reserve Bank for de-caution-listing an exporter as per the laid down procedure.
4. The procedural aspects on handling of shipping documents of the caution-listed exporters
by the AD banks, as outlined in Para 3.2 of the circular ibid, remain unchanged.
5. AD banks may bring the contents of this circular to the notice of their constituents
concerned. The Master Direction number 16/2015 dated January 1, 2016 is being updated to
reflect the above changes.
6. The directions contained in this circular have been issued under Section 10 (4) and
Section 11 (1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are
without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Ajay Kumar Misra)
Chief General Manager-in-Charge