On October 31, 2023, the Reserve Bank of India (RBI) issued a master circular on the import of goods and services titled <a href="https://m.rbi.org.in//Scripts/NotificationUser.aspx?Id=12561&amp;Mode=0">Regulation of Payment Aggregator – Cross Border</a>.&nbsp;&nbsp;

According to the circular, the RBI will regulate all Indian entities facilitating online cross-border payments for the import and export of permissible goods and services. Moreover, these entities will be collectively termed Payment Aggregators Cross Border (PA-CB).

The circular comprises guidelines to streamline the existing cross-border payment framework in India. Previously, cross-border transactions were carried out through Online Payment Gateway Service Providers (<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">OPGSPs</a>) as per a circular issued by RBI in 2015.

OPGSPs operate by partnering with an Authorised Dealer (Category I) Bank (AD Bank) and notifying the RBI. According to RBI guidelines, no formal license is needed to function as an OPGSP.

Hence, RBI has issued a circular to establish a concise and clear framework for cross-border payments. RBI will now oversee all cross-border payments in India related to the import and export of goods. The circular applies to PA-CB, PAs, authorised banks and OPGSPs.&nbsp;The PA-CB circular also denotes that there can’t be any new OPGSP.

This blog discusses the key provisions related to the latest RBI circular on the import of goods and services, RBI guidelines for payment gateway, and OPGSP guidelines.

Master Circular on Import of Goods and Services: RBI Bank Guidelines

The following are the key guidelines mentioned in the circular.

The following entities need to adhere to RBI guidelines/instructions provided in the circular.

Here are the key developments included in the new PACB circular.

Categories of Authorisation as per PA-CB Activity&nbsp;

Based on the cross-border payment activity undertaken by the PA-CBs, they can seek authorisation for one of the following three categories.

PA-CB, facilitating cross-border payments for Indian exporters, has to open an Export Collection Account (ECA) with an AD bank.&nbsp;

ECAs can be opened in either Indian currency or foreign currency. In the case of the latter, various ECAs have to be opened for different currencies.

The PA-CBs will credit all export proceeds in the respective ECAs. Additionally, export PA-CBs need to follow the below guidelines:

Similar to export PA-CBs, import PA-CBs have to open an Import Collection Account (ICA) with an AD bank.&nbsp;

They will collect the payment from importers in an escrow account managed by the payment aggregator. It will then be transferred to ICA and will eventually be transferred to the bank account of the foreign merchants.

These entities are allowed to directly onboard foreign merchants, e-commerce marketplaces, or other overseas entities that offer payment aggregation services.&nbsp;

Here are the guidelines Import PA-CBs need to follow.

Those PA-CB who engage in both import and export activities have to comply with the requirements for both Import PA-CB and Export PA-CB.

They also need to ensure that the maximum value per unit of exported or imported goods or services should be ₹25,00,000.

Non-banks who want to provide PA-CB services will have to seek authorisation from RBI. However, before seeking RBI authorisation, it is necessary to register with the Financial Intelligence Unit-India (FIU-IND).&nbsp;

However, RBI has issued the following net-worth criteria for non-banks providing PA-CB services.

The accounts of existing non-bank PA-CB who are unable to meet the net worth requirement will be closed by banks by 31 July 2024.

Snapshot Comparison Between OPGSP Circular (2015) and PA-CB Circular (2023)&nbsp;

Here are the key differences between the OPGSP Circular (2015) and the PA-CB Circular (2023)

Here is the process of seeking approval from RBI for existing or new PA-CBs.

Step 1: Draft the application through Form A, which includes the following parts.

Step 3: The RBI will process the application.

(RBI may raise queries related to various aspects such as shareholding, product processes, etc.)&nbsp;

Step 4: In principle approval from RBI.

Step 5: Filing of system Audit Report

(RBI may raise queries related to SAR audit observations)&nbsp;

Step 6: Final authorisation(state additional conditions that must be complied with)&nbsp;

The evolving cross-border payments environment and the emergence of several OPGSPs and other fintech entities encouraged RBI to issue the circular. Its main purpose is to ensure seamless and more transparent cross-border payment transactions.

Even though regulatory authorities are constantly working on making cross-border payment transactions seamless, transparent, secure, and quicker, businesses often face difficulties in receiving timely payments.&nbsp;

Skydo aims to simplify the cross-border payment landscape for businesses by automating various tasks and helping businesses open foreign bank accounts. <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Join Skydo today</a> to streamline your invoicing and financial management activities!

Q1. RBI’s master circular on the import of goods and services and cross-border payments applies to which entities?

Ans. AD banks, PAs, and PA-CBs involved in the online processing/settlement of cross-border payment transactions related to the import and export of goods and services have to comply with the guidelines mentioned in the circular.

Q2. What are various compliances according to RBI payment aggregator guidelines for cross-border payments?

Ans. All PA-CBs have to follow the guidelines provided in the circular dated October 31, 2023. Additionally, they also have to follow the various guidelines for payment aggregators mentioned under a circular issued by RBI on March 17, 2020.&nbsp;The circular includes guidelines related to customer grievance redressal and compliance with Baseline Technology Guidelines to ensure fraud prevention and risk management.

Q3. How can PA-CB seek authorisation for facilitating cross-border payment transactions?

Ans. AD banks do not need to seek authorisation to facilitate cross-border payment transactions. However, a non-bank PA-CB can seek authorisation from RBI by sending the application to the Department of Payment and Settlement Systems (DPSS), RBI, Central Office (CO), by April 30, 2024. PA-CB entities must fulfil the minimum net worth criteria before applying to RBI.

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As an exporter or freelancer working with global clients, using the wrong purpose code during transactions can lead to serious issues, from transaction cancellations to RBI investigations.

But before exploring these consequences, let’s first understand what a purpose code is and why it’s crucial.

A purpose code is a specific alphanumeric code assigned to transactions, indicating the nature and purpose of the fund transfer.&nbsp;

Exporters must use the applicable purpose code both when receiving inward remittances and making international payments. By assigning a purpose code to a transaction, exporters clarify the intended use of the funds, aiding regulatory authorities in monitoring and regulating <a href="https://www.skydo.com/blog/how-you-can-streamline-international-transactions-for-your-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cross-border financial flows</a>.

When Do You Need to Use the Purpose Code?

Purpose codes are mandatory for <a href="https://www.skydo.com/blog/seamlessly-accept-international-payments-in-india?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Indian exporters</a> engaging in international transactions. These codes are required when receiving or making payments for goods and services across borders.

Purpose codes differ based on the nature of the financial transaction and the specific industry context. The primary types of purpose codes include:

Common purpose codes are widely applicable across various industries and financial scenarios. They provide a standardized way to categorize and identify the nature of international transactions. Here are some common purpose codes along with their descriptions:

Certain industries may require specialized purpose codes to address their unique financial activities. Thus, industry-specific purpose codes offer a more granular approach to categorizing transactions. Examples include:

The RBI assumes a key role in overviewing and regulating international transactions. The key aspects of the RBI's role include:

Compliance Requirements for Indian Exporters

Indian exporters engaging in <a href="https://www.skydo.com/blog/real-time-tracking-of-international-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">international transactions</a> must adhere to specific compliance requirements related to purpose codes. Key considerations include:

For exporters, sharing the correct purpose code with their banks is crucial for receiving international payments. An incorrect purpose code can result in delays or even cancellation of the transaction. And, while it is not very common, in some instances, sharing the incorrect purpose code can also lead to compliance issues later on for exporters.  

Beyond these practical reasons, purpose codes are instrumental in monitoring global payments and preventing suspicious activities. Here’s how:

Facilitating Accurate Tracking of Foreign Exchange Transactions

The purpose codes provide a standardized framework for financial institutions and regulatory bodies to track the flow of funds precisely.&nbsp;

Role in Preventing Financial Fraud and Ensuring Transparency

Purpose codes ensure that financial transactions align with the intended purposes declared by Indian exporters. It also helps detect and prevent illicit activities such as money laundering and fraudulent financial practices.&nbsp;

Process of Selecting the Right Purpose Code&nbsp;

Finding the right code for your inward remittance can be confusing due to technical jargon and overlapping descriptions. Having assisted over 3,000 customers, we understand this challenge well.

Consider the following factors when selecting the appropriate purpose code

Factors influencing the choice of Purpose Code

Steps Involved in Determining the Appropriate Purpose Code

It’s important to choose the right code to avoid legal complications, delays or freezing of payments, and penalties from the regulator.

Common Challenges Faced by Indian Exporters Regarding Purpose Code

How to Ensure Compliance With Purpose Codes

Tips for Avoiding Errors and Ensuring Compliance

For Indian exporters, RBI Purpose Codes are key to transparent and compliant cross-border transactions. They ensure that funds are used correctly and regulatory requirements are met, while incorrect usage can lead to transaction rejections.

To navigate these complexities, follow best practices: train your team, use the best digital tools, and stay updated on regulatory changes.

Q1. How do I determine the appropriate purpose code for my international transaction?

Ans: Analyze the nature and purpose of the transaction, consult RBI guidelines, and consider industry specifics for accurate code selection. Consult&nbsp; a CA or your banking partner for more details and clarifications.

Q2. What are some common purpose codes and their meanings?

Q3. Do purpose codes vary by country or region?

Ans: Purpose codes can vary by country or region, reflecting different regulatory requirements and standards.

Q4. Can I change the purpose code after initiating an international transaction?

Ans: Typically, purpose codes cannot be changed after initiation, so selecting the correct code from the outset is crucial.

Q5. What resources can I use to find the appropriate purpose code for my international transaction?

Ans: Refer to the Reserve Bank of India (RBI) guidelines circulars and collaborate with financial institutions to guide selecting the right purpose code.

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Ever wondered about those alphanumeric characters in your bank details? Meet the sort code – a six-digit marvel shaping financial transactions in the UK and Ireland. It serves as a unique identifier for individual banks and their specific branches. Here are more reasons why sort codes are important in the said countries.

While sort codes are fundamental in the UK, transactions in the Republic of Ireland are primarily processed using the International Bank Account Number (IBAN) due to its Eurozone affiliation.&nbsp;

Sort codes began during the era of handwritten cheques. When individuals manually drafted cheques, we needed a systematic method to verify the legitimacy and destination of these instruments. Sort code provided a structured means of distinguishing between various banks and their respective branches.

A sort code on a cheque served as an encoded directive. This discrete yet vital information functioned like an address, guiding financial institutions on the accurate allocation of funds. It improved the efficiency and security of the cheque clearance process.

As technological advancements transformed banking practices, sort codes transitioned from handwritten notes on cheques to integral components of digital transactions. In the <a href="https://www.skydo.com/blog/global-payment-trends-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">current financial landscape</a>, sort codes are foundational and indispensable in authenticating transaction origins.

When we break down a sort code like 334455, we uncover its encoded information, revealing critical details about the associated bank, city, and branch. Let’s have a look.

A sort code is a numerical roadmap guiding financial transactions seamlessly from the sender to the recipient.&nbsp;

Role in Account Routing for Accurate Transactions

Sort codes act as a numerical roadmap and facilitate the accurate routing of funds during transactions. When an individual initiates a payment, the sort code directs the funds to the correct bank and branch.&nbsp;

Consequences of Incorrect or Mismatched Sort Codes

IBAN, or International Bank Account Number, is a universal identifier facilitating global transactions. In the UK, an IBAN includes a country code, check digits, Basic Bank Account Number (BBAN), and a sort code. The sort code resides as the 9th - 14th digits within an IBAN, simplifying the decoding process.

You may use the following to retrieve your sort code:

Other bank codes and how it impacts Indian IT service providers and Freelancers

Several bank codes are crucial in global transactions, significantly impacting Indian IT service providers and freelancers.&nbsp;

Sort codes are like navigators in the banking world and ensure our money takes the right route during transactions. Their job is simple but crucial: to avoid mix-ups and keep things moving smoothly. Knowing your sort code ensures accuracy. In a nutshell, sort codes are the behind-the-scenes heroes, ensuring our transactions are hassle-free and on point.

Q1. Is a sort code the same as an account number?

Ans: No, a sort code and an account number are distinct. The sort code identifies the bank and branch, while the account number specifies the unique account.

Q2. Can I use my sort code for international transactions?

Ans: Yes, you can use your sort code for domestic transactions within the UK. However, you'll likely need additional details like a SWIFT code or IBAN for international transactions.

Q3. Do sort codes change if I move or switch banks?

Ans: Yes, if you switch banks, your sort code will change. If you move but stay with the same bank, your sort code may remain the same, but it's advisable to confirm with your bank.

Q4. What happens if I provide the wrong sort code for a transaction?

Ans: Providing the wrong sort code can result in delays, rejections, or misdirection of funds. It's crucial to double-check and ensure accuracy to avoid inconvenience.

Q5. Can a sort code reveal sensitive information about my account?

Ans: No, a sort code alone cannot reveal sensitive information about your account. It is a part of the necessary transaction details but doesn't expose personal or confidential details.

Q6. Are sort codes used in other countries besides the UK and Ireland?

Ans: No, sort codes are specific to the UK and are not used in other countries. Different countries have their own systems, such as SWIFT codes or routing numbers, for bank identification and transactions.

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The Directorate General of Foreign Trade (DGFT) is committed to facilitating exports and imports, focusing on efficient, transparent, and accountable delivery systems. Hence, the DGFT has implemented an upgraded Electronic Bank Realisation Certificate (eBRC) system to enhance trade facilitation for exporters.

The enhanced eBRC system is based on the streamlined processing of electronic Inward Remittance Messages (IRMs) transmitted directly by banks to DGFT. Under this system, exporters are empowered to self-certify their eBRCs based on the IRMs received. This move intends to reduce transaction time and costs for exporters, simplify the reconciliation process for banks, and promote a more business-friendly environment.

Pilot launch of the improved e-BRC system

The DGFT had proposed a soft launch of the enhanced eBRC system from November 15, 2023. For this, banks will set individual cut-off dates based on their readiness after completing User Acceptance Testing (UAT). Both the upgraded and legacy eBRC systems will run simultaneously until all the banks transition to the improved system.

Banks have been asked to transition through mandatory API integration for prompt data exchange by January 31, 2024. The DGFT website will host a list of banks with their respective IRM cut-off dates.

Streamlined Workflow of the Enhanced e-BRC System

Previously, the Bank Realization Certificate (BRC) was processed manually. Exporters were required to submit a physical copy of the BRC to the relevant Regional Authority of the Directorate General of Foreign Trade (DGFT). Subsequently, export transaction details from the BRC were manually entered, resulting in a time-consuming and complex procedure for claiming export incentives.

DGFT introduced the eBRC Module to promote paperless trade—a unified platform facilitating the direct electronic transmission of <a href="https://www.skydo.com/blog/forex-and-its-impact?https://www.skydo.com/blog/forex-and-its-impact">Foreign Exchange</a> Realization Information from Banks to DGFT’s server. Incorporating digital certificates adds an extra layer of security to this process.

With the implementation of the eBRC system, exporters are no longer compelled to visit their banks for a Bank Realization Certificate. This has significantly streamlined the process of claiming export incentives and benefits from DGFT and other relevant export agencies, making it more accessible for exporters.

The revamped eBRC system follows a structured workflow:

The enhanced Electronic Bank Realisation Certificate (e-BRC) system offers several benefits for exporters and stakeholders, including:

The enhanced e-BRC system offers a more modern, efficient, and user-centric approach to the certification process, contributing to a smoother export documentation experience for businesses.

<a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/pilot-launch-of-upgraded-electronic-bank-realisation-certificate-system-for-exporters-from-nov-15/articleshow/105185227.cms">According to Sanjay Budhia, the Chairman of the CII National Committee on EXIM and Managing Director of Patton Group</a>, "This will help exporters and banks optimize their resources and cut costs. Over the years, DGFT has almost completely automated its processes, and now, with this new step, exporters can fully focus on enhancing exports and achieve our targeted goal of USD 2 trillion of exports by 2030."

To read more about e-BRC, check out <a href="https://www.skydo.com/blog/what-is-e-BRC?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">this</a> blog.

Ans: You can follow the below steps to check the status of your e-BRC:

Q2. How to download eBRC from the DGFT website?

Ans: You can follow the below steps to download your e-BRC from the DGFT website:

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In recent news, the Income Tax Department has flagged <a href="https://www.business-standard.com/india-news/tax-evasion-89-high-value-foreign-remittances-under-income-tax-scanner-123040400511_1.html">89 high-value foreign remittance transactions</a> on grounds of tax evasion. Such instances are not uncommon in India. Transfer of black money, tax evasion, and fraud in cross-border transactions are highly prevalent in India and globally.&nbsp;

While RBI creates many rules to mitigate such activities, here is some information on what they are and how you can comply with them.

To curb tax evasion and money laundering through foreign remittances, the Reserve Bank of India (RBI) has issued various guidelines for foreign remittances. Exporters and importers must provide <a href="https://www.skydo.com/blog/autosave-the-purpose-code-for-future-invoices-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">purpose codes</a> for foreign exchange transactions starting 31st May 2021.&nbsp;

These purpose codes are unique codes that help authorized dealer (AD) banks verify the purpose of cross-border transactions and determine the service the exporter provides.

Through the exporter’s self-declaration they understand whether the money received is a return earned from investments in foreign securities, forex receipts from transferring patents, or any other intellectual property sold to a non-resident Indian.&nbsp;

In addition to the purpose codes, RBI has also made it mandatory for exporters to submit <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">Foreign Inward Remittance Advice (FIRA)</a> receipts for each forex receipt. Although this helps in reconciling financial statements and adhering to tax compliances, ensuring compliance with purpose codes and FIRA processes is cumbersome.&nbsp;

Since non-compliance or procedural errors can cause delay or cancellation of forex payments, there is additional fear of stuck cash flow and negative impact on business operations.&nbsp;

Skydo, a modern payment solution for receiving cross-border payments smoothly, tech exporters and freelancers can simplify their compliances and easily adhere to RBI guidelines. This blog explains Skydo’s unique and autosaved purpose code, automated GST-compliant FIRA features that help businesses easily adhere to RBI guidelines and mitigate compliance risks.

Skydo's Solution: Simplifying the Purpose Code Process

RBI has released a long list of <a href="https://www.rbi.org.in/upload/ERSystem/FETERSV62New.doc">126 purpose codes</a> for inward remittance transactions.&nbsp; Exporters must mention the purpose codes for inward remittance based on the type of foreign transaction.

When you send invoices created on MS Excel or use any other customizable template, adding the purpose code for inward remittance for every invoice may seem manageable initially. However, as your business scales, manually adding codes for several transactions and verifying them is lengthy and costly.

Moreover, in the case of incorrect/missing purpose codes, banks reject the transaction and/or flag it as a fraudulent transaction for tax evasion. Once the transaction fails, you go through a long process: clarify the purpose code, request your client to resend the payment, and even pay a hefty non-compliance fee.&nbsp;

Skydo saves you the hassle of manually entering the purpose codes each time you prepare an invoice for a client. Instead, here is how the autosave purpose code for the inward remittance feature works:

Ultimately, Skydo is a modern payment platform that offers the following benefits by automating the purpose code process:

Skydo's Solution: Simplifying the FIRA Generation Process

FIRA is a document generated by authorized banks to provide complete details of a forex transaction. It is necessary for tax compliance and to get GST refunds. However, banks take around 7-15 days to generate FIRA receipts for cross-border transactions. Moreover, you must download and keep each FIRA certificate securely in a folder for each transaction. Now, imagine repeating the process a thousand times every year.&nbsp;

It creates a huge hassle for businesses. However, Skydo helps organizations manage this challenge by automatically generating FIRA certificates for each cross-border payment added to your dashboard. All the certificates are stored online in your Skydo account. You can view FIRA receipts for particular transactions within a few seconds through Skydo's intuitive dashboard. Moreover, Skydo allows users to download all the foreign inward remittance advice certificates in just a single click.

The following are some of the most significant advantages of using Skydo for simplifying the <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">foreign inward remittance advice</a> process:

The RBI has imposed strict guidelines for cross-border transactions by enforcing purpose codes for inward remittances and issuing FIRA. Such measures play a significant role in curbing tax evasion and other fraudulent activities. However, it also creates a hassle for businesses because non-compliance with purpose codes and FIRA guidelines can cause delay or cancellation of cross-border transactions, ultimately posing business risk.

Skydo eliminates this hassle by automatically filling purpose codes in invoices after the first entry. It also automatically generates FIRA certificates that enable businesses to receive timely payments and claim tax refunds smoothly.&nbsp;

Join <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> today and scale your business by automating payment compliances and minimizing risk!

Ensure RBI Guidelines for Cross-Border Transactions with Skydo

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TechX, a growing software company, recently expanded internationally. However, they unintentionally violated data protection and payment laws by neglecting <a href="https://www.skydo.com/blog/ensuring-financial-compliance-5-tips-to-safeguard-your-businesss-finances?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">compliance requirements</a>. Unaware of complex regulations, their negligence enabled data theft and scrutiny from regulatory bodies. This resulted in the revocation of their license, barring further exports.

These incidents showcase the critical need for tech exporters to prioritise global compliance. Though regulations may seem like jargon. But following them is vital for smooth international trade, mitigating reputational risks, and succeeding globally.

With complicated guidelines, global compliance is tricky yet acts as a protective guard amid competitive pressures. Mastering it is essential for tech export companies.

Compliance in the tech export industry refers to following the laws, regulations, and industry standards to ensure ethical and legal business practices. It encompasses various aspects, such as data protection, payment laws, and industry-specific regulations.&nbsp;

According to experts in the field, compliance is crucial for tech exporters as it helps build trust and credibility among stakeholders, including customers, partners, and regulatory bodies.&nbsp;

Compliance protects sensitive data, fosters transparency in financial transactions, and helps navigate the ever-changing regulatory landscape. This way, tech exporters can create a secure and reliable environment, mitigate risks, and establish themselves as responsible players in the industry.

Implementing data protection measures in India requires a proactive approach. Small businesses often handle customer data, and a failure to comply with data protection regulations can have severe consequences, especially considering limited resources and brand reputation.&nbsp;

Customers often choose a company that prioritises data security and respects privacy. This way, ensuring data protection compliance can provide a competitive advantage over non-compliant competitors.

Several regulations and frameworks govern data protection practices in India, providing a framework for businesses to follow.

Experts also emphasise the importance of implementing privacy policies and consent mechanisms that align with Indian data protection laws. Businesses must ensure that individuals are adequately informed about the purpose and nature of data processing and have the right to access, rectify, and delete their personal information.&nbsp;

The Reserve Bank of India (RBI) governs payment systems and regulates transactions in India. The Foreign Exchange Management Act (FEMA) also plays a significant role in regulating <a href="https://www.skydo.com/blog/future-of-cross-border-payments-2030-and-beyond?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cross-border transactions</a> and foreign exchange transactions.

Non-compliance with payment laws can have severe implications for tech exporters. The RBI and guidelines set by FEMA can initiate inquiries and impose penalties for violations. These penalties may include monetary fines, suspension of payment licenses, or even imprisonment in extreme cases. Non-compliance can disrupt business operations, cause reputation loss, and strained relationships with business partners and customers.

A budding e-commerce brand, Company B, faces industry-specific regulations related to consumer protection, data privacy, and online transactions. They prioritise transparency by clearly outlining terms and conditions, refund and privacy policies.&nbsp;

Additionally, Company B invests in <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">secure payment gateways</a> and encryption technologies to protect customer data. They create a trustworthy user environment and build long-term customer relationships by complying with industry regulations.

To comply with changing regulations, tech exporters can follow these steps:

Global compliance software and tools offer features such as automated regulatory monitoring, document management, risk assessment, and audit trails. These tools help exporters stay updated on changing regulations, maintain documentation, and ensure adherence to compliance requirements.&nbsp;

Expert recommendations and authoritative reviews can guide tech exporters in selecting the most appropriate compliance software and tools. 

Agencies for Providing Guidance on Regulatory Compliance

Numerous local, state, and federal agencies oversee laws and regulations applicable to organisations. These entities, and occasionally additional groups, offer guidance to assist companies in comprehending and adhering to the applicable laws and regulations. This list encompasses some of these agencies and groups:

1. Directorate General of Foreign Trade (DGFT)&nbsp;

The DGFT is the nodal agency for administering India's foreign trade policy. They offer extensive guidance on regulatory compliance for export businesses, including:

2. Export Inspection Council of India (EIC)

The EIC oversees the quality and standards of exported goods. They offer:

The BIS sets national standards for various products and services. They play a vital role in:

The Customs Department facilitates smooth import and export clearance. They offer:

EPCs are industry-specific organisations that promote exports from India. They offer:

Moreover, If you're working with clients in the US, it's important to know about these local market agencies. They can have a big impact on your success and help you navigate the ins and outs of the market.

Understanding regulations, seeking legal counsel, and leveraging technology tools are crucial. Compliance ensures a trustworthy environment, mitigates risks, and protects customer data. It is an ongoing requirement in a changing landscape, providing a strategic advantage for tech exporters to build credibility and achieve long-term success.

Ans: Regulatory requirements are the rules, laws, and guidelines established by government authorities or regulatory bodies that businesses and individuals must adhere to in their operations. These regulations aim to ensure fair practices, protect consumers, maintain market stability, and address specific industry concerns. Failure to comply with regulatory requirements may result in legal consequences, fines, or other penalties, emphasising the importance of understanding and adhering to these standards within a given jurisdiction.

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