Paragraphs 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraph 2.52 of the Policy decides the currency in which an export contract and invoice are written and in which proceeds are realised. Paragraph 2.53 decides when rupee realisation still earns export benefits and counts towards export obligations. Both were substituted by Notification 30/2026-27 dated 20 August 2026, and this article reads from the Notification. Exporters who claim a refund on these exports can see our GST refund on exports page.
This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. It also takes in Notification No. 30/2026-27 dated 20 August 2026. Later Notifications, Public Notices and Trade Notices should be checked. There is no Handbook paragraph for these two Policy paragraphs.
As notified on 20 August 2026 (Notification No. 30/2026-27), export contracts and invoices, other than those involving member countries of the Asian Clearing Union, may be denominated in foreign currency or Indian Rupees, and proceeds may be realised in any foreign currency or in Indian Rupees (paragraph 2.52(a)). Exports to any country other than Nepal and Bhutan realised in rupees through the route in paragraph 2.53 are eligible for export benefits at par with foreign currency realisation. The chapter file still prints the earlier text.
What the Notification says
The Notification is headed "To be published in the Gazette of India Extraordinary" and is issued in exercise of powers under sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraphs 1.02 and 2.01 of the Policy, with immediate effect. Our articles on section 5 of the FTDR Act and sections 3 and 4 of the FTDR Act on the power to prohibit, restrict and regulate imports and exports cover the source of that power. It carries no S.O. number on the copy consulted, so it is cited here by number and date only.
Paragraph 2.52 as notified on 20 August 2026
As notified on 20 August 2026 (Notification No. 30/2026-27), paragraph 2.52 is headed "Denomination of Export Contracts" and has three sub-paragraphs.
- (a) All export contracts and invoices, other than those involving member countries of the Asian Clearing Union (ACU), are denominated either in foreign currency or in Indian Rupees. Export proceeds are realised either in any foreign currency or in Indian Rupees.
- (b) Export contracts involving member countries of the ACU, other than Nepal and Bhutan, are denominated in a currency determined by the ACU. Such transactions may also be denominated and settled in accordance with the directions issued by the Reserve Bank of India from time to time.
- (c) Export contracts involving Nepal and Bhutan are denominated and settled in Indian Rupees, or in accordance with the directions issued by the Reserve Bank from time to time. Export contracts and invoices under EXIM Bank or Government of India Lines of Credit may also be denominated in Indian Rupees.
Paragraph 2.53 as notified on 20 August 2026
Paragraph 2.53 is headed "Applicability of FTP Schemes for Export Realisations in Indian Rupees". As notified, exports to any country other than Nepal and Bhutan, for which export proceeds are realised in Indian Rupees through banking channels by credit to Indian Rupee accounts of persons resident outside India, opened in accordance with the Foreign Exchange Management (Deposit) Regulations as amended from time to time, are eligible for export benefits or incentives and for fulfilment of export obligations under the Policy, at par with exports realised in any foreign currency. For exports to Iran, these provisions apply subject to compliance with the provisions of paragraph 2.19 of the Policy.
The Notification's own statement of effect
The "Effect of this Notification" note says that paragraphs 2.52 and 2.53 have been amended to align the provisions on the denomination of export contracts and on eligibility for Policy benefits for rupee realisations with the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023. That is the Notification's statement. This article explains no foreign exchange regulation. For those, see our articles on export realisation under section 7 of FEMA and the manner of receipt and on export declaration, realisation period and set-off under the 2026 Regulations.
What the chapter file still prints
The chapter text on the DGFT website consulted on 2 October 2026 still showed the earlier paragraphs, which read as follows in substance.
| Earlier paragraph | What the chapter file prints |
|---|---|
| 2.52(a) | Export contracts and invoices denominated in convertible foreign currency or Indian rupees, but proceeds realised in convertible foreign currency |
| 2.52(b) | Proceeds against specific exports may also be realised in rupees through a convertible Vostro account of a non-resident bank in a country other than an ACU member, Nepal or Bhutan, against payment in foreign currency by the buyer in his non-resident bank account |
| 2.52(c) | Contracts paid through the ACU denominated in ACU Dollar, participants may settle in ACU Dollar or ACU Euro as per Reserve Bank notifications, the Central Government may relax, and contracts may be denominated in Indian rupees against an EXIM Bank or Government of India line of credit |
| 2.52(d) | Invoicing, payment and settlement of exports and imports in INR subject to the Reserve Bank's A.P. (DIR Series) Circular dated 11th July, 2022, through Special Rupee Vostro Accounts, with sub-paragraphs (i) for importers and (ii) for exporters |
| 2.53(i) | Rupee proceeds against exports to Iran count for benefits at par with convertible foreign currency, subject to paragraph 2.19 |
| 2.53(ii) | Rupee proceeds as per paragraph 2.52(d)(ii) count for benefits and export obligations |
The two texts differ. The notified paragraph 2.52 has no sub-paragraph (d) and makes no mention of Special Rupee Vostro Accounts, and the notified paragraph 2.53 is a single paragraph. This article gives both and reconciles nothing.
Cross-references that still say "2.52(d)"
Other paragraphs of the Policy and the Handbook still cite "paragraph 2.52(d)", "2.52(d)(i)", "2.52(d)(ii)" or "paragraph 2.53" in the earlier sense. They are paragraphs 1.25(b), 2.46, 4.21 and 5.04(k) of the Policy and paragraphs 4.96(iv), 5.11 and 11.01(b) of the Handbook. Where those paragraphs are explained on this site, they are quoted as printed and a line notes that paragraphs 2.52 and 2.53 were substituted on 20 August 2026. One example is in our article on paragraphs 2.46 to 2.50 on import for export.
Who is affected
An exporter who writes contracts and invoices, a merchant exporter who relies on rupee realisation to claim a scheme benefit, an Advance Authorisation or EPCG holder counting rupee realisations towards an export obligation, and the exporter to Nepal, Bhutan or an ACU country will each look at a different sub-paragraph. The notified paragraph 2.53 is the one that links a rupee realisation to scheme benefits. For refund questions that follow a rupee export, see our article on export refund where the payment is in rupees through a Special Vostro account.
A worked example
Delta Spices Private Limited, an invented exporter, ships to a buyer in a country that is not an ACU member, Nepal or Bhutan. Under paragraph 2.52(a) as notified, the contract and invoice can be in foreign currency or Indian Rupees. If the buyer pays in rupees by credit to a Rupee account of a person resident outside India, opened in accordance with the Deposit Regulations, paragraph 2.53 as notified makes that realisation eligible for export benefits and for fulfilment of export obligations at par with foreign currency. Had the consignment gone to Nepal, paragraph 2.52(c) as notified would require the contract to be denominated and settled in Indian Rupees, or in accordance with Reserve Bank directions.
Need help with an export refund or realisation question?
How a rupee realisation interacts with a GST refund, a scheme benefit and the bank's records is where exporters most often go wrong. Our team can review the papers with our GST refund on exports service.
Key takeaways
- Notification 30/2026-27 of 20 August 2026 substitutes paragraphs 2.52 and 2.53.
- Contracts may be in foreign currency or Indian Rupees; proceeds may be realised in either (notified paragraph 2.52(a)).
- ACU members (other than Nepal and Bhutan) and Nepal and Bhutan have their own sub-paragraphs (notified 2.52(b) and (c)).
- Rupee realisation through the route in notified paragraph 2.53 earns benefits at par with foreign currency; Iran is subject to paragraph 2.19.
- The chapter file consulted still prints the earlier paragraphs, and several paragraphs still cite "2.52(d)".
Read next
- Paragraphs 2.54 and 2.55 of the Foreign Trade Policy, 2023: non-realisation of export proceeds and export credit agencies
- Paragraphs 2.46 to 2.50 of the Foreign Trade Policy, 2023: import for export, replacement, repaired goods and spares
- Export refund where payment is in INR through a Special Vostro account
- Import payments, advances, merchanting trade and reporting under the 2026 FEM Regulations
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.