RBI allows 15-month time for exporters to bring in proceeds of overseas shipments

New Delhi: The Reserve Bank has permitted exporters to bring proceeds of their shipments in 15 months as against the prevailing timeframe of 9 months in view of stress being faced by them.

Exporters are facing issues due to a steep tariff imposed by the US on Indian shipments since August. The US imposed a steep 50 per cent tariff on goods from India, which took effect on August 27.

Currently, the value of goods or software exports made by exporters is required to be realised fully and repatriated to the country within a period of nine months from the date of export.

The changes have been made following amendments to the Foreign Exchange Management (Export of Goods & Services) Regulations.

These regulations may be called the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025, a gazette notification dated November 13 signed by RBI regional director Rohit P Das said.

“They shall come into force from the date of their publication in the Official Gazette,” it said.

The Reserve Bank of India (RBI) had extended this timeframe for exporters to 15 months during 2020 during the COVID-19 period.

Besides, the RBI provided an extension in the period of shipment of goods, on receipt of advance payment against exports, from one year to three years.

Welcoming the RBI’s decision, Federation of Indian Export Organisations (FIEO) said that the central bank has eased the burden on debt repayments on specific impacted sectors through moratorium or deferment of payment, and also provided the permission to lenders to recalculate ‘drawing power’ in working capital facilities.

“The extension will bring great relief to the export trade. Exporters will be able to offer a better credit period to the foreign buyers.

Trade-related compliance will get strengthened due to this pro-trade development. Indian exporters will get sufficient time in the shipment of goods, on receipt of advance payment,” FIEO president S C Ralhan said.

Relief measures related to term loans and packing credit will enable exporters to manage their liquidity suitably, he added.

Earlier in the week, the government approved two schemes with a combined outlay of over Rs 45,000 crore for exporters, which are expected to help boost the country’s outbound shipments and enhance the competitiveness of domestic goods in the global markets.