The Reserve Bank of India (RBI) has restored the time limit for realisation of export proceeds to nine months from 15 months, as part of a broader package of measures aimed at strengthening India’s external sector and supporting foreign exchange inflows.
The move means exporters will once again be required to bring export earnings back to the country within nine months of shipment, reducing the flexibility that had been available under the extended 15-month window.
The measure is expected to improve the timing of foreign exchange inflows into India and help strengthen the country’s balance of payments at a time of heightened global uncertainty, volatile capital flows and pressure on emerging market currencies.
The restoration of the nine-month timeline was among several steps announced by the RBI alongside measures to attract foreign capital, including expanded access for foreign investors to government securities, incentives for overseas borrowings by public sector enterprises and support for foreign currency deposits.
Manoranjan Sharma, Chief Economist at Infomerics Ratings, said the RBI’s latest set of measures is aimed at easing pressure on the rupee and narrowing part of the balance-of-payments gap. He noted that the restoration of export proceeds realisation timelines, along with other foreign exchange initiatives, reflects the central bank’s efforts to strengthen India’s external position amid heightened global turbulence.
Industry bodies welcomed the move as part of the RBI’s broader strategy to manage external-sector risks while maintaining policy flexibility.
According to PHD Chamber of Commerce and Industry (PHDCCI), the central bank has announced a slew of measures to enhance foreign capital inflows and support financial stability as global volatility, higher commodity prices and geopolitical tensions weigh on economic conditions.
According to Ravi Narayanan, MD & CEO, SMFG India Credit, the policy infuses predictability for MSMEs and rural entrepreneurs—the very heartbeat of India’s growth story.
“For NBFCs, the status quo ensures steady, affordable credit access, empowering small businesses to navigate volatile import-export dynamics and confidently expand operations,” he said.
Source: CNBC TV18
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