31 March 2020
Reserve Bank of India (Foreign Exchange Management)
The Reserve Bank of India has introduced an amendment pertaining to the 'realisation period' and 'repatriation' of export proceeds vide Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2020 on March 31, 2020 followed by a press release on April 1, 2020. As per the amendment and the clarification provided by the RBI, the time period for realization and repatriation of export proceeds for exports made up to or on July 31, 2020 has been extended to a period of 15 months (earlier 9 months) from the date of export. This relief measure will enable the exporters to realise their receipts, especially from COVID-19 affected countries within the extended period and provide greater flexibility to the exporters to negotiate future export contracts with buyers abroad.
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