What changed
RBI issued Master Circular No.06/2010-11 consolidating all prior instructions on export of goods and services into a single document. The circular includes a sunset clause, meaning it will be withdrawn on July 1, 2011, and replaced by an updated version.
What it means for you
Banks now have a single reference point for export-related compliance under FEMA, reducing the need to track multiple circulars. The one-year validity signals that RBI expects regular updates, so banks must stay alert for the next version. This consolidation simplifies audit and training for export processing.
What you must do
- Review the master circular and ensure your export processing procedures align with the consolidated instructions.
- Train staff handling export documents on the single reference document to avoid reliance on outdated circulars.
- Prepare for the sunset date by monitoring RBI for the updated master circular expected by July 1, 2011.
- Maintain records of underlying circulars listed in the appendix for audit trail purposes.
Who it affects
All Category-I Authorised Dealer banks, Exporters and their bank relationship managers, RBI compliance and forex operations teams
What is the legal basis for this master circular?
It is issued under clause (a) of sub-section (1) and sub-section (3) of Section 7 of FEMA 1999, read with the Foreign Exchange Management (Current Account) Rules, 2000.
When will this circular be withdrawn?
The circular has a sunset clause of one year and will stand withdrawn on July 1, 2011, to be replaced by an updated version.
Does this circular introduce new rules?
No, it consolidates existing instructions on export of goods and services into one place. No new requirements are introduced.