Regulation 17 - Issue of Directions by Reserve Bank in Certain Cases

Export payment security: central bank may mandate irrevocable letters of credit and declaration approvals before export proceeds are recognised.

Regulation 17 authorises the Reserve Bank to direct that, for specified exports, exporters comply with pre export conditions to ensure receipt of full export value, including that payment be covered by an irrevocable letter of credit or alternative arrangements, that declarations be submitted to the authorised dealer for prior approval and that declaration copies be certified by an indicated authority; it also requires that exporters be given a reasonable opportunity to make representations before any direction is issued or approval withheld.