Reserve Bank of India (RBI) issues the revised draft Export and Import Regulations and Directions (EXIM Guidelines) to streamline the process for Authorized Dealer (AD) Banks

RBI issued the Draft Foreign Exchange Management (Export and Import of Goods and Services) Regulations 2025 and Draft Directions on Export and Import of Goods and Services (collectively, the ‘Draft EXIM Policy 2025’) basis the public feedback received on the draft Foreign Exchange Management (Export and Import of Goods and Services) Regulations 2024 and the draft Directions on Export of Goods and Services (collectively, the ‘Draft EXIM Policy 2024’).

The new changes proposed in the Draft EXIM Policy 2025 are outlined below:

• The definitions of ‘export of service’ and ‘import of service’ have been expanded to include software as well.
• For similar nature of services (including software) exported to multiple recipients, a single declaration form i.e. Export Declaration Form (EDF) can be submitted, subject to INR one lakh per invoice limit.
• The export realization period for goods sent to warehouses outside India would be nine months from the sale date (instead of date of shipment) to the ultimate overseas buyer as compared to the current fifteen months from the date of shipment.
• AD banks are directed to implement a customer grievance escalation process, ensure that all regulatory applications are submitted to the RBI via the Platform for Regulatory Application, Validation and Approvals (PRAVAAH), an online portal launched by RBI to streamline regulatory approvals, and report any suspicious transactions to the Enforcement Directorate (ED), in accordance with applicable compliance requirements.
• Outstanding import advances over INR 25 crores would require future payments to be backed by a standby Letter of Credit or guarantee.
• Exporters with unrealized proceeds exceeding INR 25 crores for more than two years must secure further exports solely against full advance or an irrevocable Letter of Credit.
• The requirement to credit export proceeds to the exporter's bank account only after filing of EDF has been removed.
• Submission of EDF separately is no longer required if a declaration to report the exports has already been submitted as part of the shipping bill.
• Omission of the requirement to hold inward remittances in the merchanting trader's Exchange Earners' Foreign Currency (EEFC) account before outward remittance.
• Project exporters have been permitted to invest temporary cash surpluses in short-term instruments outside India. Project exporters can deploy these temporary cash surpluses, generated outside India from exports, for investments in short-term instruments (with original or residual maturity of one year or less) such as treasury bills and deposits with banks outside India, subject to monitoring by an AD Bank.

Once notified, the EXIM Guidelines would be effective after nine months and shall apply to export and import transactions initiated from that date.

Source: Press Release issued by RBI dated 4 April 2025