Bank process to refund export payments received from Overseas buyer

RBI guidelines to refund  payments received under export of goods and services

According to Reserve Bank of India update as on 08th January 2021,   the directions on Exporter Bank rules in India to refund export remittance is given below:

D.2 Refund of export proceeds

AD Category – I banks, through whom the export proceeds were originally realized may consider requests for refund of export proceeds of goods exported from India and being re-imported into India on account of poor quality. While permitting such transactions, AD Category – I banks shall:

  1. Exercise due diligence regarding the track record of the exporter;
  2. Verify the bona-fides of the transactions;
  3. Obtain from the exporter a certificate issued by DGFT / Custom authorities that no export incentive has been availed by the exporter against the relevant export or the proportionate incentives availed, if any, have been surrendered;
  4. Not insist on the requirement of re-import of goods, where exported goods have been auctioned or destroyed by the Port / Customs / Health authorities/ any other accredited agency in the importing country subject to submission of satisfactory documentary evidence.

D.2.1. In all other cases AD banks shall ensure that procedures as applicable to normal imports are adhered to and that an undertaking from the exporter, to re-import the goods within three months from the date of refund of export proceeds, shall be obtained.




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