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The Reserve Bank of India ("RBI") has introduced 2 noteworthy relaxations through an amendment to the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015, notified on November 13, 2025. These changes extend key statutory timelines and provide additional flexibility to Indian exporters and businesses engaged in cross-border trade.
A brief summary of the amendments is set out below.
- Extension of
timeline for realisation of export proceeds: The
RBI had earlier prescribed a 9-month timeline within which an
Indian exporter was required to realise the full value of any
goods, software or services exported out of
India. The effect of this amendment has been
to extend the 9-month timeline to 15 months
from the date of export of the goods, software or services in
question thereby giving exporters more flexibility in
recovering payments. It is interesting that this relaxation
would extend to export transactions between Indian subsidiaries of
foreign parents and their foreign parents/group companies, which
could assist in a group cash flow perspective.
This revised 15-month period also applies to exports made to overseas warehouses (and is calculated from the date of shipment) as well as to exports made by units in Special Economic Zones (SEZ), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs as well as to Status Holder exporters / Export Oriented Units (EOUs). - Extension of timeline for advance payment shipments: The RBI had also prescribed a maximum time frame within which an Indian exporter was required to export goods against which the exporter had received an advance payment for shipment of goods. Under the earlier construct and unless specifically exempted, an exporter was required to export the goods in question within a maximum period of 1 year from the date on which it had received an advance from a customer, however under the amended construct, this time frame has been extended to 3 years from the date of receipt of the advance. In the event that the exporter does not export the requisite goods within the 3-year prescribed period, then the exporter would (as in the earlier construct) provide a refund of the advance (along with any interest payable on the advance) to the customer in question. It is worth noting that any refund of an advance (or payment of any interest on such an advance) beyond the 3-year period, can only be done with the prior approval of the RBI.
This amendment provides Indian exporters with a longer operational window to complete shipments and realise export proceeds, especially in complex or long-cycle transactions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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