RBI Introduces Relaxations for Exports via ‘Bharat Mart’ in UAE

The Reserve Bank of India (RBI) has announced significant relaxations to facilitate exports through warehouses in ‘Bharat Mart,’ a multimodal logistics network-based marketplace in the United Arab Emirates (UAE). This initiative aims to empower Indian traders, exporters, and manufacturers by providing them access to UAE markets and global opportunities.

Key Highlights of the Circular:

Extended Timeline for Export Realization: Exporters can now realize and repatriate the full export value of goods sold through warehouses in ‘Bharat Mart’ within nine months from the date of sale. This extended timeline offers flexibility and supports smoother financial operations for exporters.
Simplified Procedures for Warehouse Setup: Authorised Dealer Category-I banks (AD banks) are permitted to allow Indian exporters with a valid Importer Exporter Code to open or hire warehouses in ‘Bharat Mart’ without pre-conditions. This move simplifies the process for Indian businesses to establish a presence in the UAE.
Ease of Remittances for Business Operations: AD banks can also approve remittances for initial and recurring expenses related to setting up and maintaining warehouses and offices in ‘Bharat Mart.’ This ensures exporters can focus on expanding their business without administrative hurdles.

Why ‘Bharat Mart’ Matters:

‘Bharat Mart’ is envisioned as a strategic hub for Indian exporters, offering a seamless logistics network and access to international markets. By leveraging this platform, Indian businesses can enhance their global footprint, reduce logistical challenges, and tap into the growing demand for Indian goods worldwide.

Immediate Implementation:

The RBI has mandated that these relaxations come into effect immediately. AD banks are advised to inform their constituents about these changes to ensure smooth implementation.

Legal Framework:

These directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999, and are subject to compliance with other applicable laws.

Cautionary Note:

The RBI reiterates that it does not request personal information such as bank account details, passwords, or offer funds through emails, SMS, or calls. Exporters and businesses are advised to remain vigilant against fraudulent activities.

Conclusion:

The RBI’s proactive measures to support exports through ‘Bharat Mart’ reflect its commitment to fostering international trade and empowering Indian businesses. These relaxations are expected to boost India’s export sector, strengthen trade relations with the UAE, and contribute to the country’s economic growth.

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Source: RBI

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