Module: | MODULE A: INTERNATIONAL BANKING
Q182: Consider the following statements regarding the monitoring of export trade by the Reserve Bank of India:
1. The Export Data Processing and Monitoring System is a dedicated online software platform launched by the Reserve Bank of India to track the flow of export goods and the matching realization of payments.
2. Authorized Dealer banks are legally required to report the realization of export proceeds into this centralized system.
3. The standard time limit prescribed by the Reserve Bank of India for the realization and repatriation of export proceeds to India is generally 3 years from the date of export.
Which of the statements given above is or are correct?
2. Authorized Dealer banks are legally required to report the realization of export proceeds into this centralized system.
3. The standard time limit prescribed by the Reserve Bank of India for the realization and repatriation of export proceeds to India is generally 3 years from the date of export.
Which of the statements given above is or are correct?
✅ Correct Answer: A
🎯 Quick Answer:
Option A is correct because only statements 1 and 2 are accurate.Structural Breakdown: The system connects the Customs department, Authorized Dealer banks, and the Reserve Bank of India.
When goods are exported, Customs logs the physical shipment.
When the foreign buyer pays, the Authorized Dealer bank logs the financial receipt, closing the loop.
Statement 3 is incorrect because the standard time limit mandated for the realization and repatriation of export proceeds is 9 months from the date of export, not 3 years.
Historical Context: Prior to the digitization of this process, tracking export documents was heavily manual and paper-based, leading to massive reconciliation issues and leaving loopholes for capital flight where goods were exported but money never returned to India.
Causal Reasoning: The strict 9 month time limit is enforced to prevent capital flight disguised as trade.
By mandating swift repatriation, the central bank ensures that India's legitimate trade activities continuously replenish the nation's foreign exchange reserves.