Module: | MODULE A: INTERNATIONAL BANKING
Q117: Consider the following statements regarding the Export Data Processing and Monitoring System and the handling of small value transactions:
1. For export transactions valued up to 10 lakh rupees, traders can close open entries in the monitoring system through a simple self-declaration without undergoing complex bank reconciliations.
2. Traders are explicitly permitted to submit quarterly declarations directly to their banks for the bulk closure of these small value transactions.
3. The reduction in export value for invoices up to 10 lakh rupees strictly requires an official authorization certificate from the Directorate General of Foreign Trade.
Which of the above statements is or are correct?
2. Traders are explicitly permitted to submit quarterly declarations directly to their banks for the bulk closure of these small value transactions.
3. The reduction in export value for invoices up to 10 lakh rupees strictly requires an official authorization certificate from the Directorate General of Foreign Trade.
Which of the above statements is or are correct?
✅ Correct Answer: A
🎯 Quick Answer:
Statements 1 and 2 are correct. Statement 3 is incorrect.It tracks every export transaction from the initial filing of the customs shipping bill to the final realization of the financial proceeds in the bank.
Structural Breakdown: To ease the heavy burden of compliance, the 2026 regulations introduced self-declaration closures for micro-transactions valued up to 10 lakh rupees.
It also allowed exporters to bundle these small discrepancies and close them out quarterly through their Authorized Dealer Banks.
Historical Context: Previously, resolving minor financial discrepancies in the system, such as small fractional differences caused by fluctuating currency exchange rates, required exhaustive manual reconciliation.
This created massive digital backlogs and compliance headaches for small and medium enterprises.
Causal Reasoning: Statement 3 is incorrect because, under the 2026 ease of doing business provisions, a simple written declaration directly from the exporter to their Authorized Dealer Bank is legally sufficient to reduce the invoice value for transactions under 10 lakh rupees.
Direct intervention or certification from the Directorate General of Foreign Trade is no longer required for these micro-amounts.