RBI Permits 15-Month Time For Exporters To Bring In Proceeds Of Overseas Shipments
Exporters are facing issues due to the steep tariffs imposed by the US on Indian shipments.
In a major relief to exporters, the Reserve Bank of India has permitted them to bring proceeds of their shipments in 15 months, instead of the current timeframe of nine months.
The relief was granted in view of the stress being faced by a section of exporters due to the shorter timeframe.
The move also comes at a time when the United States has slapped tariffs as high as 50% on Indian goods, effective Aug. 27. Exporters are facing issues due to these steep duties imposed by the US on Indian shipments.
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 Nov. 13 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.
Additionally, the RBI has also increased the time period for shipment of goods "from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later".
The Reserve Bank has taken the following measures with a view to mitigate the impact of trade disruptions on exports arising on account of global headwinds
Trade Relief Measures
The RBI has eased the burden on debt repayments on "specific impacted sectors", by offering a moratorium or deferment of payment of all of term loans and recovery of interest on working capital loans falling due between Sept. 1, 2025, and Dec. 31, 2025.
The sectors covered include chemicals, plastics, rubber, handbags, carpets, apparel, footwear, aluminium, nuclear reactors, electrical machinery and equipment, vehicles, and furniture, according to the notification issued by the RBI.
Additionally, articles of stone, plaster, cement, asbestos, mica or similar materials, along with articles of iron or steel, would also be covered, as per the notification.
The central bank has also granted permission to lenders to recalculate ‘drawing power’ in working capital facilities either by reducing the margins or basis reassessment, during the above period.
The RBI said it has taken the following measures with a view to mitigate the impact of trade disruptions on exports arising on account of global headwinds.
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.
The government on Wednesday approved the Export Promotion Mission (Rs 25,060 crore) and the Credit Guarantee Scheme (Rs 20,000 crore).
Prime Minister Narendra Modi on Thursday said the Export Promotion Mission (EPM) will improve export competitiveness, help MSMEs, first-time exporters and sectors that are labour-intensive.
With PTI inputs
