The Reserve Bank of India has notified the Foreign Exchange Management (Export of Goods & Services) (Second Amendment) Regulations, 2025 vide Notification F. No. FEMA 23(R)/(7)/2025-RB dated 13 November 2025, introducing significant relief measures for Indian exporters.
1. Extended Export Realisation Period
Earlier Provision (Old Rule): Pursuant to Regulation 9, Export proceeds were required to be realised and repatriated to India within 9 months from the date of export.
Revised Provision (New Rule): Under the amended regulation, the permitted realisation period is now extended to 15 months.
2. Extended Period for Shipment against Advance Payments
Earlier Provision (Old Rule): Pursuant to Regulation 15, where an exporter had received advance payment, whether bearing interest or otherwise, from a foreign buyer or any third party abroad, such exporter was obligated to effect shipment of the goods within a period of one year from the date of receipt of the said advance.
Revised Provision (New Rule): Under the amended regulation, the permissible period for completion of shipment of goods against advance payments has been extended to three years from the date of receipt of such advance, subject to the condition that the advance has been duly declared in the prescribed export documentation.
3. Implications for Exporters
These amendments signal RBI’s intent to align export compliance with real trade cycles. The extended timelines:
- Support exporters in managing delayed remittances
- Lower compliance burden and follow-up pressure
- Improve liquidity and internal planning
- Streamline documentation and write-off processes
- Help AD Banks recalibrate monitoring and reporting systems