Indian exporters have reported a relatively hassle-free experience in banking transactions and reduction in transaction costs, due to a slew of measures taken by the Reserve Bank of India to reform processes and liberalise foreign exchange management, according to an RBI survey.
The improvements in bank-related activities involved in export processing have been substantial. Over 70 per cent respondents did not experience procedural delay for "availing post-shipment credit", RBI said in a statement on Friday.
Procedural delays, however, are reported in the cases of certain activities like "realisation of duty draw back" and "issuance of bank realisation certificate".
RBI's analysis is based on the responses received from a sample of 120 export firms representing all 15 major commodity groups, including textiles and clothing, gems and jewellry, software, agriculture products.
There was no visible discrimination towards any particular size class (in terms of volume of exports) for almost all activities except for certain customs related activities, like 'clearing custom formalities' and 'realisation of duty drawback'.
The small exporters reported severe delays due to procedural bottlenecks in custom clearance and duty drawback.
The steps like delegation of powers to exporters to extend the realisation time, reduction of invoice value and write-off up to 10 per cent of export due to realisation and enhancement of export realisation period up to 12 months for EOUs have been effective in reducing the transaction cost.
