RBI Announces Measures To Help Exporters

Mumbai -The Reserve Bank on Wednesday announced a host of measures to help exporters tide over challenges posed by the imposition of 50 per cent tariffs by the US administration on Indian shipments.

The measures include reduced paperwork and compliance burden for small exporters and importers.

“The export sector is a vital part of India's economy,” said RBI Governor Sanjay Malhotra, while announcing steps to further strengthen the sector and enhance ease of doing business for traders.

One of the key measures is the extension of the time period for repatriation from foreign currency accounts of Indian exporters in IFSC, from one month to three months.

In January 2025, the RBI had permitted Indian exporters to open foreign currency accounts with a bank outside India for the realisation of export proceeds.

Funds in these accounts can be used for making import payments or have to be repatriated by the end of next month from the date of receipt of the funds.

“It has now been decided to extend the time period for repatriation, from one month to three months, in case of such foreign currency accounts maintained in IFSC in India,” the RBI said, adding this will encourage Indian exporters to open accounts with IFSC Banking Units and also increase forex liquidity in IFSC.

The amendments to regulations will be notified shortly.

The RBI also increased the period for forex outlay for Merchandise Trade transactions from four months to six months, a move expected to help Indian merchants overcome the challenges they face in completing their business transactions efficiently while maintaining profitability.

“In terms of extant guidelines on MTT, outlay of foreign exchange is allowed up to four months. It has now been decided to increase the period for the forex outlay from four months to six months, in case of MTT,” it said.

Further, with a view to ease compliance for exporters/importers, especially of small-value goods and services, the RBI has decided to simplify the process of reconciliation in the Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS).

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