An important banking alert has been issued for NRIs. Continuing to use a regular resident savings account after becoming an NRI is considered a violation of FEMA and RBI rules. Failure to convert the account into an NRO or NRE account on time may lead to account freeze, penalties, or legal action.
In exports, payments are mainly received through Advance or Letter of Credit (LC). In Advance, the buyer pays upfront, reducing risk. In LC, the buyer’s bank guarantees payment, but correct documentation is required. For new exporters, advance payment is generally safer.
