DGFT Allows Export Payments in Indian Rupees

The Directorate General of Foreign Trade (DGFT) has amended Paragraphs 2.52 and 2.53 of the Foreign Trade Policy 2023 through Notification No. 30/2026-27 dated 20 August 2026.

The amendment, effective immediately, provides greater flexibility for export contracts, invoices and payments in Indian Rupees.

· What Has Changed?

For exports to countries other than Asian Clearing Union (ACU) member countries, export contracts and invoices may be denominated in:

Any permitted foreign currency, or
Indian Rupees (INR)

Export proceeds may also be received in foreign currency or INR, subject to applicable banking and foreign exchange regulations.

Infographic explaining that export contracts, invoices, and proceeds for non-ACU countries may be in permitted foreign currency or Indian Rupees (INR), subject to applicable banking and foreign exchange regulations.

· Will INR Payments Qualify for Export Benefits?

Eligible export proceeds received in Indian Rupees may qualify for:

DGFT export benefits and incentives
Fulfilment of Export Obligations
Treatment at par with proceeds received in foreign currency

The payment must be received through prescribed banking channels involving eligible INR accounts of persons residing outside India, in accordance with applicable FEMA regulations.

Eligibility under schemes such as Advance Authorisation and EPCG will remain subject to their respective conditions.

Infographic confirming that eligible INR export proceeds may qualify for DGFT export benefits and fulfilment of export obligations when received through prescribed banking channels and eligible INR accounts, subject to FEMA and scheme-specific conditions.

· Special Country Rules

Exports involving ACU member countries, except Nepal and Bhutan, must follow the currency and settlement rules prescribed by the ACU and RBI.
Exports to Nepal and Bhutan may be denominated and settled in INR or as permitted by RBI.
Contracts under EXIM Bank or Government of India Lines of Credit may be denominated in Indian Rupees.
Exports to Iran remain subject to Paragraph 2.19 of FTP 2023.

Infographic outlining special export-payment rules for ACU members, Nepal and Bhutan, EXIM Bank or Government of India Lines of Credit, and Iran under RBI regulations and FTP 2023.

· What Should Exporters Check?

Before accepting an export payment in INR, exporters should confirm:

The permitted payment mechanism
The buyer’s eligible INR banking arrangement
RBI and FEMA compliance
Documentation required by the Authorised Dealer Bank
Eligibility under the relevant DGFT scheme
Proper reporting of export realisation, including e-BRC, wherever applicable

Infographic checklist for exporters before accepting INR payments, covering permitted payment mechanisms, the buyer’s eligible INR banking arrangement, RBI and FEMA compliance, authorised dealer bank documents, DGFT scheme eligibility, and export-realisation reporting, including e-BRC.

· Conclusion

This DGFT amendment supports the wider use of the Indian Rupee in international trade and may help exporters reduce foreign exchange risk and conversion costs.

However, INR export payments must be received through an authorised banking route. Exporters should consult their bank before finalising the payment terms.

For assistance with DGFT, Advance Authorisation, EPCG and export-import compliance, contact DGFT EXIM Consultants.