GJEPC has urged the Reserve Bank of India (RBI) to introduce a series of banking and regulatory reforms to strengthen the competitiveness of India\u2019s gem and jewellery exports. The Council\u2019s recommendations focus on improving exporters\u2019 access to working capital, reducing compliance bottlenecks, streamlining banking procedures and creating a more facilitative regulatory framework for the sector.<\/p>\n
The recommendations were presented by Sabyasachi Ray, Executive Director, GJEPC, during an interaction between RBI Governor Sanjay Malhotra, Deputy Governor Rohit Jain and senior RBI officials with Export Promotion Councils (EPCs), trade bodies and industry associations at the RBI Central Office in Mumbai on 25 June. The GJEPC delegation also included Mital Doshi, Convener, Banking, Insurance & Taxation Committee (BITC), and Sudhir Patil, Manager \u2013 Trade, Policy & Projects.<\/p>\n
To improve exporters\u2019 access to raw materials and working capital, GJEPC sought a calibrated relaxation allowing advance remittances of up to US$500,000 for imports of gold from OECD- and LBMA-approved suppliers by recognised exporters, SEZ units and export-oriented manufacturers.<\/p>\n
The Council also requested RBI to permit advance payments for importing findings, mountings and other jewellery components, noting that these are essential manufacturing inputs rather than tradable commodities.<\/p>\n
The Council also urged RBI to advise banks to ensure that service charges levied on MSME exporters are reasonable and commensurate with the services provided, noting that disproportionately high banking charges increase transaction costs and adversely impact the competitiveness of small exporters.<\/p>\n
GJEPC highlighted persistent operational issues in the Import Data Processing and Monitoring System (IDPMS) and Export Data Processing and Monitoring System (EDPMS), particularly legacy entries that continue to affect exporters\u2019 regulatory compliance and access to bank credit. The Council proposed greater integration between RBI, DGFT and Customs systems to streamline reporting and reduce transaction delays.<\/p>\n
The Council also pointed out that several banks continue to keep low-value export shipping bills pending despite RBI permitting export shipments of up to \u20b910 lakh to be regularised based on the exporter\u2019s declaration. GJEPC requested RBI to ensure uniform implementation of these guidelines across all Authorised Dealer (AD) Banks.<\/p>\n
GJEPC further called for standardised implementation of the revised Foreign Exchange Management (Export and Import of Goods and Services) Regulations across AD Banks to minimise variations in interpretation and improve ease of doing business.<\/p>\n
Highlighting the rapid growth of online jewellery exports, GJEPC sought clear operational guidelines for e-commerce transactions involving returned goods. The Council noted that while some consignments are re-imported into India, others remain warehoused overseas for future orders or are not re-imported because of their low value. It requested uniform guidelines for exporters and AD Banks on refunding export proceeds to overseas buyers in such cases.<\/p>\n
The Council also recommended restoring the export proceeds realisation period for SEZ units from the revised 9 months to 12 months, citing the industry\u2019s longer credit cycles, consignment-based business model and international trade practices. According to GJEPC, the shorter timeline could weaken India\u2019s competitiveness against manufacturing hubs such as the UAE, Hong Kong and Thailand.<\/p>\n
GJEPC recommended a clear regulatory distinction between gold mobilised for domestic consumption and gold utilised for export manufacturing. It proposed that export-linked Gold Metal Loans be governed under a separate framework to facilitate export production while ensuring appropriate safeguards for domestic gold financing.<\/p>\n
The Council also recommended faster digital Customs processes, improved inventory and receivables reporting, and stronger coordination between regulatory agencies to reduce transaction costs and improve export efficiency.<\/p>\n
During the meeting, RBI officials outlined recent measures to facilitate exports, including simplified export transaction procedures, improvements to EDPMS, greater flexibility for Merchanting Trade Transactions, liberalised norms for overseas warehouses, promotion of INR trade settlement, and the revised FEMA regulations that will take effect from 1 October 2026.<\/p>\n
The Department of Regulation also highlighted initiatives to improve export credit availability, including the revised interest subvention scheme, enhanced prudential norms for MSMEs, lower risk weights, and measures to ensure banking charges remain commensurate with the services provided.<\/p>\n","protected":false},"excerpt":{"rendered":"
GJEPC has urged the Reserve Bank of India (RBI) to introduce a series of banking and regulatory reforms to strengthen the competitiveness of India\u2019s gem and jewellery exports. The Council\u2019s recommendations focus on improving exporters\u2019 access to working capital, reducing compliance bottlenecks, streamlining banking procedures and creating a more facilitative regulatory framework for the sector.…<\/p>\n","protected":false},"author":1,"featured_media":37055,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[],"thb-sponsors":[],"class_list":["post-37054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bulletin"],"acf":[],"yoast_head":"\n