RBI tweaks trade rules to favour rupee-settled exports, extends realisation timeline for exporters
The RBI has amended foreign trade rules to encourage rupee-denominated trade by giving exporters more time to realise export proceeds when invoices are raised and settled in Indian rupees. The move is positioned as part of efforts to internationalise the rupee.
MUMBAI: The Reserve Bank of India has adjusted foreign trade rules to promote wider use of the Indian rupee in cross-border transactions, extending the time allowed for exporters to realise proceeds on exports that are invoiced and settled in rupees.
Under the revised 2026 framework, exporters who invoice in foreign currency will continue to have up to 15 months to bring in export proceeds. However, exporters who bill and settle transactions in Indian rupees will be allowed a longer realisation period of 18 months, effectively giving additional flexibility when overseas buyers agree to rupee settlement.
The differentiated timeline signals a clear policy preference for rupee-denominated trade, as it allows Indian exporters to offer more accommodating credit terms without falling foul of settlement timelines. For importers and exporters, the change is intended to remove operational frictions that can discourage switching away from hard-currency invoicing.
Policy watchers say the measure fits into a broader set of steps aimed at internationalising the rupee—by making rupee trade easier to execute, easier to price and less administratively risky. While currency choice ultimately depends on counterparties, extended timelines can become a practical incentive in competitive export markets.
The impact will depend on uptake across sectors and trade corridors, especially where buyers are willing to hold rupees or have access to rupee settlement channels. For now, the RBI’s change provides exporters with a tangible benefit if they can shift contracts to rupee invoicing and settlement.