On September 08, 2021, the Reserve Bank of India has notified the Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2021 to amend the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015.
The Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2021 amend regulation 15 of Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 which deals with advance payment against exports in the following manner:
In cases where an exporter receives advance payment, the exporter shall be under an obligation to ensure that the rate of interest, if any, payable on the advance payment shall not exceed 100 basis points above the London Inter-Bank Offered Rate (LIBOR) or other applicable benchmark as may be directed by the Reserve Bank, as the case may be.
*Tanvi Singh, Editorial Assistant has reported this brief.
