New Delhi: The Indian government on Wednesday permitted trade settlement in Indian rupees for export promotion schemes in an effort to streamline and smooth international trade in the local currency. With the revision to the Foreign Commerce Policy, trade can now be invoiced, paid for, and settled in Indian rupee.
“The Government of India has made suitable amendments in the Foreign Trade Policy and Handbook of Procedures to allow for International Trade Settlement in Indian Rupees (INR) i.e., invoicing, payment, and settlement of exports/imports in Indian Rupees. Accordingly, the Directorate General of Foreign Trade (DGFT) had earlier introduced Para 2.52(d) vide Notification No. 33/2015-20 dated 16.09.2022 to permit invoicing, payment and settlements exports and imports in INR in sync with RBI’s A.P. (DIR Series) Circular No.10 dated11th July 2022,” the announcement read.
“The updated provisions for Export Realisation in Indian rupees have been notified for, imports for exports (Para 2.46 of FTP), export performance for recognition as Status Holders (Para 3.20 of FTP), Realisation of export proceeds under Advance Authorisation (AA) and Duty-Free Import Authorisation (DFIA) schemes (Para 4.21 of FTP) and Realisation of Export Proceeds under Export Promotion Capital Goods (EPCG) Scheme (Para 5.11 of HBP),” it added.
Therefore, in accordance with RBI regulations, benefits, incentives, and the fulfilment of export obligations under the Foreign Trade Policy will be extended for realisations in Indian Rupees.
“Given the rise in interest in the internationalisation of the Indian Rupee, the given Policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian Rupees,” the government’s announcement read.