The Reserve Bank of India (RBI) has sent out a circular addressed to Authorised Dealer Category I banks regarding relaxed norms for export transactions involving goods sold through warehouses located within Bharat Mart in United Arab Emirates (UAE). The primary objective is to streamline and facilitate exports from India by offering certain concessions and simplifications.
The relaxed regulations include:
1. **Payment and Repatriation**: AD banks are allowed to permit exporters to fully realize and repatriate the export value of goods sold at Bharat Mart warehouses within a period of nine months starting from the date of sale, enhancing liquidity for traders.
2. **Warehouse Operations Financing**: There will be liberalization on allowing opening/hiring of warehouses by Indian exporters in Bharat Mart along with remittances for initial and recurring expenses related to establishing or maintaining business operations. This includes verifying the reasonableness of these expenses.
**Implementation Details**:
- The circular starts immediately, implying an immediate implementation date.
- AD Category I banks are advised to communicate this circular to their relevant stakeholders.
- Guidance is also provided on cautioning against unauthorized or fraudulent requests related to bank account details and passwords, reinforcing the RBI's stance on security.
**Legislative Basis**: The actions outlined in this circular stem from provisions of the Foreign Exchange Management Act (FEMA), 1999 under sections 104 and 111. This indicates that these policies are legally sanctioned and operate within an institutional framework allowing for permissions or approvals as per other laws.
Essentially, RBI aims to extend support to Indian exporters and traders by offering simplified export processes facilitated through a designated UAE-based marketplace named Bharat Mart, thereby strengthening the country's export capabilities with specific financial relaxations.
Key Entities Referenced
RESERVE BANK OF INDIA: The central bank of India, the issuer of the circular.
RBI: Abbreviation for RESERVE BANK OF INDIA
RBI20252630: Reference number for the circular
A.P. DIR Series Circular No. 03: The series and number of the circular being issued by the Reserve Bank of India.
April 23, 2025: Date of the circular.
All Authorised Dealer CategoryI banks: The entities to whom the circular is addressed.
Madam Sir: Formal salutation used in the circular.
Exports through warehouses in Bharat Mart in UAE relaxations: Subject of the circular regarding relaxations for exports through warehouses in Bharat Mart in UAE.
Authorised Dealer Category I banks: Banks authorized to deal in foreign exchange.
AD banks: Abbreviation for Authorised Dealer Category I banks.
Clause a of Sub regulation 1 of Regulation 9 of Foreign Exchange Management Export of Goods Services Regulations, 2015: Reference to a specific clause and regulation related to foreign exchange management for export of goods and services.
Notification No. FEMA 23R2015RB: Notification number related to Foreign Exchange Management Act.
Para C.6 and C.13 of Master Direction Export of Goods Services: References to specific paragraphs within the Master Direction on Export of Goods and Services.
Bharat Mart: A multimodal logistics network based marketplace in United Arab Emirates.
United Arab Emirates: Country where Bharat Mart is located; also referred to as UAE.
UAE: Abbreviation for United Arab Emirates.
Importer Exporter Code: Code required for import and export activities in India.
Foreign Exchange Department, Central Office: Department within the Reserve Bank of India responsible for foreign exchange matters.
Amar Building: Building where the Foreign Exchange Department is located.
Sir P.M.Road, Fort, Mumbai 400 001: Address of the Foreign Exchange Department.
fedcotraderbi.org.in: Email ID for communication related to foreign exchange matters.
Foreign Exchange Management Act: The act under which the directions in the circular are issued; also referred to as FEMA.
FEMA: Abbreviation for Foreign Exchange Management Act.
1999 42 of 1999: Year and Act number of the Foreign Exchange Management Act.
N. Senthil Kumar: Name of the Chief General Manager.
Chief General Manager: Designation of the signatory of the circular.
बेटी बचाओ
बेटी पढ़ाओ
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
RBI/2025-26/30
A.P. (DIR Series) Circular No. 03 April 23, 2025
To,
All Authorised Dealer Category-I banks
Madam / Sir,
Exports through warehouses in ‘Bharat Mart’ in UAE – relaxations
Attention of Authorised Dealer Category – I banks (AD banks) is invited to Clause (a) of
Sub regulation 1 of Regulation 9 of Foreign Exchange Management (Export of Goods &
Services) Regulations, 2015 {Notification No. FEMA 23(R)/2015-RB} and Para C.6 and
C.13 of Master Direction – Export of Goods & Services.
2. To facilitate export through warehouses in ‘Bharat Mart’, a multimodal logistics network
based marketplace in United Arab Emirates (UAE) that will provide Indian traders,
exporters, and manufacturers access to the markets in UAE as well as worldwide, it has
been decided to provide the following relaxations:
a) AD banks may allow exporters to realise and repatriate full export value of goods
exported to ‘Bharat Mart’ within nine months from the date of sale of the goods from
the warehouse.
b) AD banks may allow the following without any pre-conditions, after verifying the
reasonableness of the same:
(i) Opening/hiring of a warehouse in ‘Bharat Mart’ by an Indian exporter with
a valid Importer Exporter Code.
(ii) Remittances by the Indian exporter for initial as well as recurring expenses
for setup and continuing business operations of its offices.
3. The above instructions shall come into force with immediate effect. AD Category-I
banks may bring the contents of this circular to the notice of their constituents concerned.
िवदेशी मुद्रा िवभाग, केंद्रीय कायार्लय, 5वी ंमंिजल, अमर भवन, सर पी.एम.रोड, फोटर् मुंबई - 400 001
Foreign Exchange Department, Central Office, 5th Floor, Amar Building, Sir P.M.Road, Fort, Mumbai – 400 001
Telephone: (91-22) 22603000, Email Id – fedcotrade@rbi.org.in
िहंदी आसान है, इसका प्रयोग बढाइए
चेतावनी : भारतीय �रजवर् बैंक द्वारा ई-मेल, डाक, एसएमएस या फोन-कॉल के ज�रए िकसी की भी ���गत जानकारी जैसे बैंक के खाते का �ौरा, पासवडर् आिद नही ंमाँगी जाती है।
यह धन रखने या देने का प्र�ाव भी नही ंकरता है। ऐसे प्र�ावो ंका िकसी भी तरीके में जबाब मत दीिजए
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like banks account details, passwords, etc.
It never keeps or offers funds to anyone. Please do not respond in any manner to such offers4. The directions contained in this circular have been issued under sections 10(4) and
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,
(N. Senthil Kumar)
Chief General Manager
2