Normal border trade from Dec 1
Source: The Sangai Express

Imphal, November 12 2015: The ongoing border trade between India and Myanmar on around 20 selected items trough Moreh and Myanmar would be transformed into a normal border trade with effect from December 1.The Reserve Bank of India has issued a circular to this effect.

The RBI issued a circular (circular no.26) on November 5 informing the Ministry concerned that the Indo-Myanmar border trade which was formally opened by former Union Commerce Ministry P Chidambaram on April 12, 1995 would be transformed into a normal trade, informed an official source.

Together with the RBI's circular, Ministry of Commerce, Joint Secretary Ravi Kapur sent an intimation to Chief Secretary O Nabakishore on November 9 .

Once the border trade is transformed into a normal trade, all transactions related to the border trade would be done through banks.

Currencies already approved may also be used in the border trade.

The border trade opened in accordance to RBI's circular no 17 issued on October 17, 2000 has seen little growth as traders are often constrained to act as both exporters and importers.

This led to serious problems of trade imbalance.

When TK Nair, advisor to former Prime Minister Dr Manmohan Singh visited Imphal, a high power committee headed by former Commerce and Industries Additional Chief Secretary O Nabakishore was constituted to study technical and other problems of the border trade.

Later, the committee recommended withdrawal of the RBI circular issued on October 17, 2000 .

Once the border trade is transformed into a normal trade, all the problems associated with foreign exchange would be resolved effectively, added the official.

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