RBI to discontinue system-based automatic caution-listing of exporters

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to discontinue the system-based automatic caution-listing of exporters in view of the impact of COVID-19 pandemic.

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Key-Points

The decision will also empower exporters to negotiate better terms with overseas buyers.

As part of automation of the Export Data Processing and Monitoring System, the ‘Caution/De-caution Listing’ of exporters was automated in 2016.

Accordingly, the exporters were to be caution-listed automatically, if any shipping bill against them remained outstanding for more than two years.

After contracting for six months in a row, India’s exports grew by 5.27 percent year-on-year to 27.4 billion dollars in September while the trade deficit narrowed to a three-month low of 2.91 billion dollars.