Govt Allows Trade Settlement in RUPEE for Claiming EXPORT INCENTIVEs
The Directorate General of Foreign Trade (DGFT) with its Notification No 43/2015-2020 Dated 9th November 2022 (Wednesday) notified norms allowing exporters to avail export incentives under the foreign trade policy (FTP), even on realisation in Indian Rupees (INR). As per the notification, the DGFT, under the Ministry of Commerce and Industry, has allowed invoicing, payment & settlement of imports and exports in INR. This move is aimed at facilitating trade in domestic currency.
In July 2022, the Reserve Bank of India (RBI) had requested banks to make additional arrangements for import/export transactions in INR considering the increasing interest of global trading community in the domestic currency.
The DGFT notification said that “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 Dated 11th July 2022″
The notification highlighted changes announced in the Foreign Trade Policy (FTP) for grant of export incentives, fulfilment of Export Obligation (EO), and for export payment realisations in INR as per the RBI guidelines released in July 2022.
This decision would definitely facilitate ease in international trade transactions in INR considering the growing interest in internationalisation of Indian Rupee.
DGFT
Legal
Company Secretarial
DGFT Notifications
Others
Recent Posts
- Deadline for Filing Annual RODTEP Return (ARR) for FY 2023-24 Extended to 30th June 2025
- Advance Authorisation License Norms Fixation: Everything You Need to Know in 2025
- Advance License Authorisation Amendment: Latest Updates and Simplified Guide (2025)
- Bombay High Court Rules: No Interest or Penalty on IGST for Past Imports under Advance Authorisation
- Advance Authorisation License Clubbing: A Complete 2025 Guide to New Rules, Benefits & Compliance
- Call for Feedback: Review of Automobile Tyre SIONs
- Revalidation and Extension of Export Obligation Period for Advance Authorisation License
- How to Procure Raw Materials Domestically Through ‘Advance Authorisation License’ Invalidation
FeATURED ARTICLES
Deadline for Filing Annual RODTEP Return (ARR) for FY 2023-24 Extended to 30th June 2025 As per the recent update…
Advance Authorisation License Norms Fixation: Everything You Need to Know in 2025 For Indian exporters, obtaining an Advance Authorisation license…
Advance License Authorisation Amendment: Latest Updates and Simplified Guide (2025) The Advance License Authorisation Amendment process is an important step…
Bombay High Court Rules No Interest or Penalty on IGST for Past Imports under Advance Authorisation In a landmark judgment,…
