DGFT Eases Rupee Invoicing Rules for Exporters

DGFT Eases Rupee Invoicing Rules for Exporters

Category: Economy / International Trade / Foreign Exchange

Notes

• Directorate General of Foreign Trade (DGFT) eased rules concerning rupee-based export transactions.
• Export contracts and invoices involving countries outside the Asian Clearing Union (ACU) can now be denominated in INR or foreign currencies.
• Eligible rupee payments for exports to countries other than Nepal and Bhutan can qualify for FTP benefits and fulfilment of export obligations.
• Exports financed through EXIM Bank or Government of India lines of credit may also be invoiced in INR.
• The changes align FTP 2023 with RBI's Foreign Exchange Management regulations.

Key Pointers

• DGFT → Ministry of Commerce & Industry
• ACU: Asian Clearing Union.
• Important for internationalisation of the Indian Rupee.
• Exporters get greater flexibility in invoicing and payment settlement.