**Policy Summary**
**Subject:** Insertion of Para 2.52(d) under the Foreign Trade Policy (2015-2020) regarding INR Invoicing, Payment, and Settlement of Exports and Imports.
**Issuing Authority:** Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.
**Date of Notification:** September 16, 2022
**Notification Number:** 33/2015-2020
**Purpose:** To amend the Foreign Trade Policy (2015-2020) to align with Reserve Bank of India (RBI) A.P.DIR Series Circular No. 10, dated July 11, 2022, enabling invoicing, payment, and settlement of exports and imports in Indian Rupees (INR).
**Key Provision:** A new sub-paragraph 2.52(d) is inserted into the Foreign Trade Policy, explicitly permitting invoicing, payment, and settlement of exports and imports in INR, in accordance with RBI guidelines. Settlement of trade transactions in INR will be facilitated through Special Rupee Vostro Accounts opened by Authorized Dealer (AD) banks in India, as permitted under Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016.
**Operational Mechanism:**
* Indian importers will make payments in INR, which will be credited to the Special Vostro account of the correspondent bank of the partner country, against invoices for goods or services.
* Indian exporters will receive export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country.
**Effective Date:** Immediate.
**Impact:** This notification formally incorporates the RBI's circular into the Foreign Trade Policy, providing a framework for INR-based international trade transactions.
**Contact:** Santosh Kumar Sarangi, Director General of Foreign Trade & Ex-officio Addl. Secretary to the Government of India, Email: dgft@nic.in, File No. 01/93/180/32/AM19/P.C.IIB/PART.I/E-21759.
Key Entities Referenced
Foreign Trade Policy 2015-2020: A policy governing India's import and export regulations, amended periodically.
Foreign Trade Development and Regulation Act, 1992: An act of the Indian Parliament to provide for the development and regulation of foreign trade.
Directorate General of Foreign Trade: A department under the Ministry of Commerce and Industry, Government of India, responsible for implementing the Foreign Trade Policy.
Reserve Bank of India: The central bank of India.
RBI A.P.DIR Series Circular No.10: A circular issued by the Reserve Bank of India (RBI) related to regulations and directions concerning Authorized Persons (APs) dealing in foreign exchange.
INR: Indian Rupee, the official currency of India.
Special Rupee Vostro Accounts: Accounts opened by AD (Authorised Dealer) banks in India for settling trade transactions in Indian Rupees (INR).
Foreign Exchange Management Deposit Regulations, 2016: Regulations governing the management of foreign exchange deposits in India.
[To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub-Section (II)]
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Notification No. 33 /2015-2020
New Delhi, Dated: 16"" September, 2022 .
Subject: Insertion of Para 2,52(d) under the Foreign Trade Policy in syne with RBI
A.P.(DIR Series) Circular No.10 dated 11" July 2022.
S.0.(E): In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade
(Development and Regulation) Act, 1992, read with paragraph 1.02 of the Foreign Trade Policy,
2015-2020, as amended from time to time, the Central Government hereby inserts sub-para (d)
under Para 2.52 ‘Denomination of Export Contracts’ of the Foreign Trade Policy in sync with the
RBI’s A.P. (DIR Series) Circular No.10 dated 11" July, 2022:
Para 2.52(d) is introduced as under:
(d) Invoicing, payment and settlement of exports and imports is also permissible in INR
under RBI’s A.P.(DIR Series) Circular No.10 dated 11" July, 2022. Accordingly, settlement of
trade transactions in INR may also take place through the Special Rupee Vostro Accounts
opened by AD banks in India as permitted under Regulation 7(1) of Foreign Exchange
Management (Deposit) Regulations, 2016, in accordance to the following procedures:
(i) Indian importers undertaking imports through this mechanism shall make payment in INR
which shall be credited into the Special Vostro account of the correspondent bank of the partner
country, against the invoices for the supply of goods or services from the overseas seller
/supplier.
(ii) Indian exporters, undertaking exports of goods and services through this mechanism, shall be
paid the export proceeds in INR from the balances in the designated Special Vostro account of
the correspondent bank of the partner country.
Effect of this Notification: Para 2.52(d) is notified, to permit Invoicing, payment and
settlement of exports and imports in INR in sync with RBI’s A.P. (DIR Series) Circular No. 10
dated 11" July, 2022. This shall come into force with immediate effect.
This issues with the approval of Minister of Commerce & Industry. Point
(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex-officio Addl. Secretary to the Government of India
Email: dgft@nic.in
[File No.01/93/180/32/AM-19/P.C.II(B)/PART.I/E-21759]