The Reserve Bank of India is taking decisive action to boost the global use of the Indian rupee. It has amended foreign trade regulations to give exporters more time to receive payments when they invoice and settle deals in rupees.
New Rules for Exporters
Under the revised regulations set for 2026, exporters will see a clear distinction based on the currency they use. If an exporter invoices in foreign currency, they will continue to have up to 15 months to realise export proceeds. However, for those who bill and settle transactions in Indian rupees, the realisation period will be extended to 18 months.
Encouraging Rupee Trade
This differentiated timeline serves a specific purpose. It aims to enable Indian exporters to offer more flexible credit terms to their overseas buyers. By providing an extra three months for payment, exporters can make rupee-denominated deals more attractive to international partners.
The move signals a clear policy preference from the RBI. It wants to promote the internationalisation of the Indian rupee by making it easier and more beneficial for global trade to be conducted in the local currency.
Benefits for Exporters
Exporters who choose to transact in rupees can now negotiate better terms with buyers. The extended payment window allows them to structure deals that might be more appealing, especially in competitive international markets.
This regulatory change is part of broader efforts to reduce dependence on foreign currencies in India's trade relationships. By incentivising rupee settlements, the RBI hopes to see wider adoption of the currency across global trade networks.
