NEW DELHI, 28th June, 2024 (WAM) -- India is to end the hitherto existing practice of manually ascertaining and publishing the exchange rate of the Indian rupee against 22 global currencies.
The decision will ease the conditions for doing business with India for traders across the world – both for importers and exporters.
India’s Central Board of Indirect Taxes and Customs (CBIC) yesterday announced the launch of an Exchange Rate Automation Module (ERAM) which will become operational on 4th July.
“The new automated system of ascertaining and publishing the exchange rate will replace the existing manual process, and shall come into effect from 4th July, 2024,” the announcement said.
“ERAM is a significant step towards trade facilitation as the exchange rates of 22 currencies against the Indian rupee would now be published online in advance for ease of use by all importers and exporters,” it said.
The Indian rupee is fully convertible only in the “current” account. That means the domestic currency can be converted into foreign currency and vice versa only for trade in goods and invisibles such as services, transfers or income from investment.
Hitherto, the CBIC’s practice was to notify exchange rates through a manual notification.
With the launch of ERAM, exchange rates would be available on the Indian Customs gateway website – known as ICEGATE – twice a month, on the evening of the 1st and the 3rd Thursdays of the month and would be effective from midnight of the following day.
The announcement said the “CBIC has been consistently making strides in enhanced digitalization of Customs processes in India and the launch of ERAM is a step in this direction.”