Policy amended as interest rises in Rupee internationalisation
The Government has made suitable amendments in the Foreign Trade Policy and Handbook of Procedures to allow for international trade settlement in Indian Rupees such as invoicing, payment and settlement of exports and imports.
Given the rise in interest in internationalisation of Indian Rupee, the Policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian Rupees, the Commerce and Industry Ministry said on 9 Nov 2022.
Accordingly, the Directorate General of Foreign Trade (DGFT) had earlier introduced Para 2.52(d) vide Notification No. 33/2015-20 dated 16 Sept 2022 to permit invoicing, payment and settlements exports and imports in the Rupee in sync with RBI’s A.P. (DIR Series) Circular No.10 dated 11 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 and fulfilment of Export Obligation under the Foreign Trade Policy, for export realisations in Indian Rupees as per the RBI guidelines dated 11 July 2022.
The updated provisions for Export Realisation in Indian rupees been notified for, imports for exports (Para 2.46 of FTP), export performance for recognition as Status Holders (Para 3.20 of FTP), Realisation of export proceeds under Advance Authorisation (AA) and Duty Free Import Authorisation (DFIA) schemes (Para 4.21 of FTP) and Realisation of Export Proceeds under Export Promotion Capital Goods (EPCG) Scheme (Para 5.11 of HBP).
Accordingly, benefits / fulfilment of Export Obligation under the Foreign Trade Policy has been extended for realisations in Indian Rupees as per the RBI guidelines dated 11 July 2022. fiinews.com
