Rules eased to help exporters receive payments in rupees
India has eased rules for rupee-based export payments, allowing exporters to invoice and receive payments in Indian currency or foreign currencies from non-ACU countries. Rupee export realisations will now qualify for trade-policy benefits and count towards export obligations, helping promote wider use of the rupee in international trade.
India has simplified its rules on rupee payments for exports, enabling businesses to invoice international sales and receive funds in Indian currency. This move aligns exporters with foreign-currency earnings, granting them similar trade-policy advantages. The Directorate General of Foreign Trade (DGFT) updated the Foreign Trade Policy (FTP), allowing export contracts and invoices to be settled in rupees or foreign currencies with non-Asian Clearing Union (ACU) nations.
The nine-member ACU, established in 1974, comprises Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. The DGFT's notification indicates a shift towards local currency usage in global trade, with eligible rupee payments for exports no longer limited to Nepal and Bhutan.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
