FEMA - Ease of Communication - RBI issues Master Directions
THE Reserve Bank of India yesterday issued 17 Master Directions covering foreign exchange transactions. Master Directions on foreign exchange issued yesterday consolidate relevant A.P (DIR Series) Circulars issued so far within the ambit of the relevant regulations, amended up to date and cover different classes of transactions permitted under the rules and regulations framed under the Foreign Exchange Management Act, 1999 (FEMA).
Master Directions on foreign exchange matters deal with the manner in which an authorised person should conduct cross border/forex transactions. These include directions on:
Import of Goods and Services
Export of Goods and Services
RBI Governor Dr. Raghuram G. Rajan had, in the Fourth Bi-monthly Monetary Policy Statement, 2015-16 announced on September 29, 2015 stated that "the Reserve Bank will update all its master regulations, and streamline the required procedure for compliance with the regulations by January 1, 2016. All master regulations will be fully updated and placed online. The Reserve Bank will also work to improve clarity in regulatory communications."
The process of issuing Master Directions involves issuing one Master Direction for each subject matter covering all instructions on that subject. Any change in the rules, regulation or policy will be communicated during the year by way of circulars. The Master Directions will be updated suitably and simultaneously whenever there is a change in the rules/regulations or there is a change in the policy. All the changes will get reflected in the Master Directions available on the RBI website along with the dates on which changes are made. Explanations of rules and regulations will be issued by way of Frequently Asked Questions (FAQs) after issue of the Master Directions in easy to understand language wherever necessary.
Wish our Revenue Boards could attempt something like this.