New Delhi : Indian exporters can now invoice and receive payment in rupees for a wider range of overseas transactions after the government amended its foreign trade rules.
The Directorate General of Foreign Trade has amended the Foreign Trade Policy 2023 to allow export contracts, invoices and payments to be denominated and settled in Indian rupees or foreign currency for trade with countries outside the Asian Clearing Union. The change took effect immediately.
Rupee payments received through permitted banking channels will qualify for applicable Foreign Trade Policy benefits and can be counted towards export obligations, like eligible foreign-currency receipts.
The provision covers exports to countries outside the Asian Clearing Union, which comprises India, Bangladesh, Bhutan, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka.
Existing arrangements continue to apply to trade involving ACU members.Exports financed through the Export-Import Bank of India (EXIM Bank) or under Government of India lines of credit can also be invoiced in rupees under the amended policy.
The change does not remove the option of using dollars, euros or other foreign currencies. It gives exporters another way to structure international transactions where overseas buyers agree to settle in rupees.
The move is part of the government’s efforts to widen the use of the rupee in international trade.
Rupee receipts from eligible exports will now qualify for the relevant trade-policy benefits and can be counted towards export obligations, provided the payments come through permitted banking channels.
