The decision is aimed at raising cash flow and easing trade settlement.
The revised instructions would provide exporters quicker access to funds while ensuring safeguards for genuine transactions, according to a central bank circular.
According to the new guidelines, exporters must have a confirmed letter of credit (LC) or contract to execute shipments. Their past export performance must also be satisfactory, and they will need to demonstrate adequate capacity to fulfil the export order. The advance payment must also be interest-free.
The relaxation will help exporters procure raw materials and continue operations amid global trade challenges, a domestic media outlet reported.
ALCHEMPro News Desk (DS)
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