Can realization of export proceeds be in INR in India?

 

Indian Union Budget 2016-17, Budget speech pdf .  Click here to read

RBI guidelines on realization of export proceeds be in INR

Can realization of export proceeds be in INR in IndiaAs per Foreign Trade policy of India, All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency.

However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his nonresident bank (after deducting bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.

 

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Comments


Meenal: However, export proceeds against specific exports may also be realised in rupees provided it is through a freely convertible Vostro account of a non-resident bank situated in any country, kindly teelme the elaborated meaning of the same.

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