Will the authorities initiate action?
This is with reference to news letter dtd17/12/2018 in money life " RBIs reported move over remittances causes panic among exporters".
Dayananda Kamath5 minutes ago It is High time RBI exercise the powers vested with it and stop allowing authorised dealers to misuse the satisfaction clause in allowing transactions under FEMA. Issuing of FIRC for trade transactions was prohibited in FERA as well as FEMA. But allowed to be abused first in consortium finance then universally to everyone as RBI did not initiate action for violations and closed it eyes. Change from Regulation to Management in Forex Act was misinterpreted and it appears they consider mismanagement also management.
Similarly Remitting of commission without declaring to customs is being misused to the hilt and allowed to be abused. It also leads to fraud on Govt by availing export incentives for which they are not eligible as there is no check to return the proportionate incentive on such remittances.
RBI has not initiated action on 88000 defaulters list thrown out by EDPMS for last 2 years. And to come out from this list Exporters as well as authorised dealers are again violating FEMA. It is high time RBI initiate special audit of the elimination of defaulters from the list from FEMA angle in last two years. Will the authorities wake up now. This route is allowed to be abused since 2004 for money laundering and round tripping. And only RBI woke up when its failure was brought to its notice in 2013, after modus operandi of remitting commission was published in news papers and EDPMS was introduced in 2014 more
Dayananda Kamath5 minutes ago It is High time RBI exercise the powers vested with it and stop allowing authorised dealers to misuse the satisfaction clause in allowing transactions under FEMA. Issuing of FIRC for trade transactions was prohibited in FERA as well as FEMA. But allowed to be abused first in consortium finance then universally to everyone as RBI did not initiate action for violations and closed it eyes. Change from Regulation to Management in Forex Act was misinterpreted and it appears they consider mismanagement also management.
Similarly Remitting of commission without declaring to customs is being misused to the hilt and allowed to be abused. It also leads to fraud on Govt by availing export incentives for which they are not eligible as there is no check to return the proportionate incentive on such remittances.
RBI has not initiated action on 88000 defaulters list thrown out by EDPMS for last 2 years. And to come out from this list Exporters as well as authorised dealers are again violating FEMA. It is high time RBI initiate special audit of the elimination of defaulters from the list from FEMA angle in last two years. Will the authorities wake up now. This route is allowed to be abused since 2004 for money laundering and round tripping. And only RBI woke up when its failure was brought to its notice in 2013, after modus operandi of remitting commission was published in news papers and EDPMS was introduced in 2014 more
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