Export proceeds can be realised in any foreign currency or in Indian Rupees; rupee realisations get FTP benefits — Paras 2.52 and 2.53 amended by DGFT Notification 30/2026-27
DGFT has rewritten Paras 2.52 and 2.53 of the Foreign Trade Policy 2023. Export contracts and invoices (other than with ACU member countries) may be denominated in foreign currency or Indian Rupees, and proceeds realised in either. Exports realised in rupees through rupee accounts of non-residents qualify for export benefits and export obligation, at par with foreign currency.
Key facts
- In force
- With immediate effect from 20 August 2026
- Who it affects
- Exporters, Advance Authorisation and EPCG holders, AD banks, exporters invoicing in Indian Rupees
- What it is
- Rule change
- Section
- Foreign Trade
- Published
- 20 August 2026
In 30 seconds
- Notification No. 30/2026-27 is dated 20 August 2026 and takes effect immediately.
- Para 2.52(a): contracts and invoices, other than those involving ACU member countries, to be denominated in foreign currency or Indian Rupees; proceeds realised in any foreign currency or in Indian Rupees.
- ACU member countries other than Nepal and Bhutan: a currency determined by the ACU, or as per RBI directions.
- Nepal and Bhutan: Indian Rupees, or as per RBI directions.
- Para 2.53: rupee realisations by credit to rupee accounts of persons resident outside India are eligible for export benefits and fulfilment of Export Obligation, at par with foreign currency — for any country other than Nepal and Bhutan.
- For exports to Iran, this is subject to para 2.19 of the FTP.
हिंदी में सार
DGFT ने Notification 30/2026-27 (20 अगस्त 2026) से विदेश व्यापार नीति 2023 के पैरा 2.52 और 2.53 बदल दिए हैं। अब ACU सदस्य देशों को छोड़कर बाक़ी निर्यात अनुबंध विदेशी मुद्रा या भारतीय रुपये में हो सकते हैं और भुगतान भी किसी भी विदेशी मुद्रा या रुपये में लिया जा सकता है। नेपाल और भूटान को छोड़कर किसी भी देश को किया गया निर्यात, जिसका भुगतान अनिवासी के रुपया खाते से बैंकिंग चैनल के ज़रिये मिला हो, FTP के लाभ और Export Obligation के लिए विदेशी मुद्रा के बराबर माना जाएगा।
Before and now
Contracts could be denominated in freely convertible currency or Indian rupees, but export proceeds had to be realised in freely convertible currency; rupee realisation was allowed for specific exports on conditions.
Proceeds may be realised either in any foreign currency or in Indian Rupees (other than contracts involving ACU member countries, which have their own rule).
What has been amended
By Notification No. 30/2026-27 dated 20 August 2026, the Central Government has amended Para 2.52 (Denomination of Export Contracts) and Para 2.53 (Applicability of FTP Schemes for Export Realisations in Indian Rupees) of the Foreign Trade Policy 2023, with immediate effect.
The notification states its purpose: to align the provisions on denomination of export contracts, and on eligibility for FTP benefits for export realisations in Indian Rupees, with the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023.
Para 2.52 — before and after
| Subject | Existing para | Revised para |
|---|---|---|
| General rule | Contracts and invoices in freely convertible currency or Indian rupees, but proceeds to be realised in freely convertible currency | Contracts and invoices, other than those involving ACU member countries, in foreign currency or Indian Rupees. Proceeds realised in any foreign currency or in Indian Rupees |
| Rupee realisation | Allowed for specific exports, through a freely convertible Vostro account of a non-resident bank in a country other than an ACU member, Nepal or Bhutan, matched by free foreign currency paid by the buyer | No such conditions in the revised para |
| Asian Clearing Union (ACU) | Contracts settled through the ACU to be denominated in ACU Dollars; settlement in ACU Dollar or ACU Euro per RBI notifications | Contracts involving ACU member countries, other than Nepal and Bhutan, in a currency determined by the ACU; they may also be denominated and settled in accordance with RBI directions |
| Nepal and Bhutan | Not dealt with separately as to denomination | Denominated and settled in Indian Rupees, or in accordance with RBI directions |
| Lines of credit | Rupee denomination allowed under an EXIM Bank / Government of India line of credit | Retained: contracts and invoices under EXIM Bank / Government of India Lines of Credit may also be denominated in Indian Rupees |
| INR trade settlement | Permitted subject to RBI’s A.P. (DIR Series) Circular No. 10 dated 11 July 2022, through Special Vostro accounts | Not carried as a separate clause |
Para 2.53 — FTP benefits on rupee realisations
The earlier para gave benefits in two cases: rupee proceeds against exports to Iran (subject to para 2.19), and rupee proceeds realised under the Special Vostro route of para 2.52(d)(ii).
The revised para is general. 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 — are eligible for export benefits, incentives and fulfilment of Export Obligations under the FTP, at par with exports realised in any foreign currency.
For exports to Iran, these provisions apply subject to compliance with para 2.19 of the FTP.
What exporters should do
- If you invoice or plan to invoice in rupees, note that the realisation itself may now be in Indian Rupees, and it counts for export benefits and export obligation where it is credited through banking channels to a rupee account of a non-resident opened under the FEMA Deposit Regulations.
- For buyers in ACU member countries, follow the ACU-determined currency or the RBI directions in force.
- For Nepal and Bhutan, contracts are in Indian Rupees or as RBI directs; the revised Para 2.53 does not extend to these two countries.
- For Iran, check para 2.19 of the FTP before claiming benefits.
Questions and answers
Can export proceeds now be realised in Indian Rupees?
Yes. Under the revised Para 2.52(a), export contracts and invoices other than those involving ACU member countries may be denominated in foreign currency or Indian Rupees, and export proceeds may be realised either in any foreign currency or in Indian Rupees.
Do rupee realisations qualify for export incentives and export obligation?
Yes, under the revised Para 2.53, where the export is to a country other than Nepal and Bhutan and the proceeds are realised in Indian Rupees through banking channels by credit to Indian Rupee accounts of persons resident outside India opened under the Foreign Exchange Management (Deposit) Regulations. Such exports are treated at par with exports realised in any foreign currency.
What is the rule for Nepal and Bhutan?
Export contracts involving Nepal and Bhutan are to be denominated and settled in Indian Rupees, or in accordance with the directions issued by the Reserve Bank of India from time to time.
What about exports to ACU member countries?
Contracts involving ACU member countries, other than Nepal and Bhutan, are to be denominated in a currency determined by the ACU. They may also be denominated and settled in accordance with RBI directions.
Is there a special condition for Iran?
Yes. For exports to Iran, the revised Para 2.53 applies subject to compliance with the provisions of para 2.19 of the FTP.
Published 20 August 2026. Updated 7 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.