RBI publicizes measures to assist exporters

The Reserve Bank on Wednesday (October 1, 2025) introduced a number of measures to assist exporters tide over challenges posed by the imposition of fifty per cent tariffs by the U.S. administration on Indian shipments.

The measures embody decreased paperwork and compliance burden for small exporters and importers.

RBI MPC assembly updates on October 1, 2025

“The export sector is a vital part of India’s economy,” stated RBI Governor Sanjay Malhotra, whereas saying steps to additional strengthen the sector and improve ease of doing enterprise for merchants.

One of the important thing measures is the extension of the time interval for repatriation from international forex accounts of Indian exporters in IFSC, from one month to 3 months.

In January 2025, the RBI had permitted Indian exporters to open international forex accounts with a financial institution outdoors India for the realisation of export proceeds.

Funds in these accounts can be utilized for making import funds or should be repatriated by the top of subsequent month from the date of receipt of the funds.

“It has now been decided to extend the time period for repatriation, from one month to three months, in case of such foreign currency accounts maintained in IFSC in India,” the RBI stated, including this may encourage Indian exporters to open accounts with IFSC Banking Units and in addition enhance foreign exchange liquidity in IFSC.

The amendments to rules shall be notified shortly.

The RBI additionally elevated the interval for foreign exchange outlay for Merchandise Trade transactions from 4 months to 6 months, a transfer anticipated to assist Indian retailers overcome the challenges they face in finishing their enterprise transactions effectively whereas sustaining profitability.

“In terms of extant guidelines on MTT, outlay of foreign exchange is allowed up to four months. It has now been decided to increase the period for the forex outlay from four months to six months, in case of MTT,” it stated.

Further, with a view to ease compliance for exporters/importers, particularly of small-value items and companies, the RBI has determined to simplify the method of reconciliation within the Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS).

As per the revised pointers, payments may be reconciled and closed by a financial institution in EDPMS or IDPMS, based mostly on a declaration by the involved exporter or importer that the quantity has been realised in EDPMS/IDPMS of a price equal to Rs 10 lakh per invoice, or much less.

“The revised procedure will also enable a reduction in the realisable value of bills by AD banks based on such a declaration. This measure is expected to reduce compliance burden on small value exporters and importers and enhance ease of doing business,” RBI stated.

Governor Malhotra additionally introduced plans to rationalise FEMA rules concerning non-residents establishing their enterprise presence in India.

Also, key provisions regarding eligible debtors, recognised lenders, limits on borrowing, value of borrowing, end-use and reporting, within the External Commercial Borrowing rules, issued below FEMA, are proposed to be rationalised.