Notification No.– 30/2026-27
Dated: 20th August, 2026
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has issued Notification No. 30/2026-27, amending Paras 2.52 and 2.53 of the Foreign Trade Policy (FTP), 2023.
The amendment expands the circumstances in which exporters can invoice and receive export payments in Indian Rupees while qualifying those payments for export benefits, subject to applicable RBI requirements.
The changes also bring the FTP provisions in line with the applicable foreign exchange framework governing rupee-denominated export transactions.
What Has Changed
The amendment makes changes to two related aspects of export transactions: how export contracts can be denominated and settled, and when rupee payments can be treated as export realisation for benefits under the FTP.
Para 2.52: Pricing and Settlement of Export Contracts
Para 2.52 deals with the currency in which exporters can price their export contracts and receive payment. The amendment provides greater flexibility for transactions involving Indian Rupees.
- Earlier: Export contracts could be denominated in freely convertible foreign currency or Indian Rupees, but payment generally had to be received in freely convertible currency, subject to specified exceptions involving arrangements such as Vostro accounts and the Asian Clearing Union (ACU) mechanism.
- Now: For countries other than ACU member countries, export contracts can generally be invoiced and settled in either freely convertible foreign currency or Indian Rupees, subject to RBI regulations.
- For ACU countries other than Nepal and Bhutan, export contracts should generally be denominated and settled in the currency prescribed under the ACU mechanism, unless otherwise permitted by RBI.
- For Nepal and Bhutan, contracts may be denominated and settled in Indian Rupees or handled as permitted under RBI instructions.
Para 2.53: Recognition of Rupee Payments for Export Benefits
The amendment also changes when rupee payments received for exports can be treated as export realisation for purposes such as export benefits and fulfilment of export obligations.
- Earlier: Rupee payments were recognised in specified circumstances, including exports to Iran and payments received through the prescribed Vostro account mechanism.
- Now: Rupee payments received for exports to countries other than Nepal and Bhutan can generally qualify as export realisation, provided they are received through permitted banking channels and credited to the appropriate rupee accounts in accordance with RBI regulations.
- Exports to Iran remain subject to the additional conditions specified under Para 2.19 of FTP 2023.
What This Means for Exporters
The revised provisions give exporters greater flexibility to use Indian Rupees for international trade while retaining eligibility for applicable export benefits. However, the treatment of specific transactions continues to depend on RBI regulations and the special arrangements applicable to ACU countries, Nepal, Bhutan and Iran.
Conclusion
DGFT Notification No. 30/2026-27 broadens the use of Indian Rupees for export invoicing and settlement and expands the circumstances in which rupee export realisations can qualify for benefits under FTP 2023. The changes provide greater flexibility while maintaining the specific rules applicable to certain countries and RBI-regulated payment arrangements.
To view the DGFT notification, click here.
You may contact professional DGFT consultants for assistance with export contracts, rupee invoicing, and other DGFT-related requirements.
