The Reserve Bank of India (RBI) has extended the period for realization and repatriation of export proceeds to nine months from the date of export, providing exporters with greater operational flexibility while supporting the country’s foreign exchange management framework.
The decision restores the earlier nine-month timeline that had been in place before being reduced to six months. The move comes amid evolving global trade conditions and is expected to ease compliance requirements for exporters dealing with longer payment cycles in overseas markets.
Under the revised norms, exporters will have up to nine months to receive payment for goods and services exported from India and bring the proceeds back into the country. Industry stakeholders have welcomed the measure, noting that extended payment periods are common in several international markets and sectors, particularly in engineering goods, textiles, chemicals, seafood, and other export-oriented industries.
The RBI said the relaxation is aimed at facilitating trade and ensuring smoother export operations while maintaining adequate oversight of foreign exchange transactions. The measure is also expected to improve liquidity management for exporters and reduce pressure arising from delayed payments caused by global economic uncertainties, shipping disruptions, and supply chain challenges.
Export promotion bodies have described the move as a positive step that aligns India’s foreign exchange regulations with prevailing international business practices. The additional time for repatriation is expected to help exporters strengthen relationships with overseas buyers by offering more flexible payment terms without facing regulatory constraints.
The extension forms part of a broader set of measures announced by the central bank to support external sector stability and encourage foreign exchange inflows. Market participants believe the revised timeline will enhance ease of doing business for exporters while contributing to sustained growth in India’s merchandise and services exports.
India’s export sector remains a key contributor to economic growth, and the RBI’s latest decision is expected to provide timely support as businesses navigate a dynamic global trade environment and seek to expand their presence in international markets.
