Government of India on Wednesday allowed International Trade Settlements in Indian Rupees in a move aimed at promoting Indian exports.
To this end, suitable amendments were made in the Foreign Trade Policy and Handbook of Procedures to allow for International Trade Settlement in Indian Rupees (INR).
This will lead to invoicing, payment, and settlement of exports / imports in Indian Rupees.
It may be noted that the Directorate General of Foreign Trade (DGFT) had earlier permitted 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.
In continuation to the above notification, changes have been introduced under Para 2.53 of the Foreign Trade Policy, for grant of exports benefits, incentives and fulfilment of Export Obligation under the Foreign Trade Policy, for export realisations in Indian Rupees as per the RBI guidelines dated 11th July 2022.
The updated provisions for Export Realisation in Indian rupees been notified for imports for exports export performance for recognition as Status Holders, Realisation of export proceeds under Advance Authorisation (AA) and Duty Free Import Authorisation (DFIA) schemes and Realisation of Export Proceeds under Export Promotion Capital Goods (EPCG) Scheme.
Accordingly, benefits, incentives and fulfilment of Export Obligation under the Foreign Trade Policy has been extended for realisations in Indian Rupees as per the RBI guidelines dated 11th July 2022.
Given the rise in interest in internationalisation of Indian Rupee, the given Policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian Rupees.