The Reserve Bank of India (RBI) has provided a major relief for businesses involved in export-import trade.
The deadline for Merchanting Trade Transactions (MTT) has now been extended from four months to six months.
This change will especially help traders dealing with small-value trades, offering them more flexibility amid the current volatile and uncertain global market.
What Are Merchanting Trade Transactions (MTT)?
MTT refers to transactions where Indian traders buy goods from one foreign country and sell them directly to another foreign country, without the goods physically entering India.
Payments in these trades must be made within a specified timeframe, which has now been extended.
Why Was the Deadline Extended?
Global trade continues to face uncertainty, with frequent shipment and delivery delays.
Businesses needed extra time to complete transactions and avoid losses. The RBI’s decision is aimed at supporting smaller export-import deals.
Benefits for Traders
Exporters and importers now have more time to complete transactions.
Closing shipping bills and bills of entry becomes easier and less stressful.
Small businesses will face reduced compliance burden and greater convenience.
