The Reserve Bank of India (RBI) has issued a directive allowing export proceeds to be settled in Indian Rupees (INR) for goods and supplies made in foreign currency, effective from July 11, 2022. This change, aligned with FEMA regulations and the Foreign Trade Policy, requires exports to be realised in convertible INR within a stipulated period. The policy also covers imports, including capital goods, which must be settled via a special Vostro account. Various export schemes and units like SEZ and EOU are also subject to these INR settlement rules.
The RBI being the Nodal bank and the central bank has come with a circular Dated 11-7-2022 to settle the export proceeds in INR for goods /supplies done in respective foreign currency.
The FEMA regulation 1999 has clearly and Foreign trade policy 2015-20 in handbook FTP 2.5 clearly says all the e
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