Amendments in Foreign Exchange Management (export of goods and services) Regulations 2015 – enhancement of period of export realization and exports against advance payments
NO. CLE-HO/POL/CIRCULAR/2025
24th November 2025
Members of the Council
Sub : Amendments in Foreign Exchange Management (export of goods and services) Regulations 2015 – enhancement of period of export realization and exports against advance payments
Dear Member
The Reserve Bank of India has issued a Notification dated 13.11.25 (copy enclosed), making following amendments
1. Period for realization of export proceeds have been enhanced from nine months to fifteen months.
2. Period for export of goods when advance payment is received, has been enhanced from one year to three years.
We are also sending herewith the RBI Master notification on Foreign Exchange Management (export of goods and services) Regulations 2015 , wherein above amendments have been incorporated.
The relevant provisions of the said Foreign Exchange Management (export of goods and services) Regulations concerning export realization and exports against advance payments are reproduced below.
Sub – Regulation 9. Period within which export value of goods/software/ services to be realised:-
(1) The amount representing the full export value of goods / software/ services exported shall be realised and repatriated to India within fifteen months or within such period as may be specified by the Reserve Bank, in consultation with the Government, from time to time, from the date of export, provided
(a) that where the goods are exported to a warehouse established outside India with the permission of the Reserve Bank, the amount representing the full export value of goods exported shall be paid to the authorised dealer as soon as it is realised and in any case within fifteen months or within such period as may be specified by the Reserve Bank, in consultation with the Government, from time to time from the date of shipment of goods;
(b) further that the Reserve Bank, or subject to the directions issued by that Bank in this behalf, the authorised dealer may, for a sufficient and reasonable cause shown, extend the said period.
(2) (a) Where the export of goods / software / services has been made by Units in Special Economic Zones (SEZ) / Status Holder exporter / Export Oriented Units (EOUs) and units in Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs) as defined in the Foreign Trade Policy in force, then notwithstanding anything contained in sub-regulation (1), the amount representing the full export value of goods or software shall be realised and repatriated to India within fifteen months or within such period as may be specified by the Reserve Bank, in consultation with the Government, from time to time, from the date of export.
Provided further that the Reserve Bank, or subject to the directions issued by the Bank in this behalf, the authorised dealer may, for a sufficient and reasonable cause shown, extend the said period.
(b) The Reserve Bank may for reasonable and sufficient cause direct that the said exporter/s shall cease to be governed by sub-regulation (2);
Provided that no such direction shall be given unless the unit has been given a reasonable opportunity to make a representation in the matter.
(c) On such direction, the said exporter/s shall be governed by the provisions of sub-regulation (1), until directed otherwise by the Reserve Bank.’
Explanation:
For the purpose of this regulation, the “date of export” in relation to the export of software in other than physical form, shall be deemed to be the date of invoice covering such export.
Sub – Regulation 15. Advance payment against exports:-
(1) Where an exporter receives advance payment (with or without interest), from a buyer / third party named in the export declaration made by the exporter, outside India, the exporter shall be under an obligation to ensure that –
i) the shipment of goods is made within three years from the date of receipt of advance payment;
ii) the rate of interest, if any, payable on the advance payment shall not exceed 100 basis points above the London Inter-Bank Offered Rate (LIBOR) or other applicable benchmark as may be directed by the Reserve Bank, as the case may be; and.
iii) the documents covering the shipment are routed through the authorised dealer through whom the advance payment is received;
Provided that in the event of the exporter’s inability to make the shipment, partly or fully, within 5three years from the date of receipt of advance payment, no remittance towards refund of unutilized portion of advance payment or towards payment of interest, shall be made after the expiry of the period of 5three years, without the prior approval of the Reserve Bank.
(2) Notwithstanding anything contained in clause (i) of sub-regulation (1), an exporter may receive advance payment where the export agreement itself duly provides for shipment of goods extending beyond the period of 5three years from the date of receipt of advance payment.
Members may kindly note the above.
Thanks and regards
R. Selvam
Executive Director