RBI Extends Export Fund Repatriation Period to Three Months; Permits Rupee Loans Abroad:

RBI Extends Export Fund Repatriation Period to Three Months; Permits Rupee Loans Abroad The Reserve Bank of India (RBI) has recently issued a press release dated October 13, 2025, titled "Facilitation of External Trade and Payments – Amendment to Regulations". According to the press release, the central bank has introduced a few amendments to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 and Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015. This action is the conclusion to the announcement in the Statement on Developmental and Regulatory Policies on October 01, 2025, and is part of continuous efforts towards ‘facilitating external trade and payments’.

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The Reserve Bank of India (RBI) has made a few key changes related to foreign exchange rules on October 6, 2025: Rupee Lending to Neighbouring Countries: Authorised Dealer, or AD banks and their foreign branches, have now been allowed to provide loans in Indian Rupees to people and banks in Bhutan, Nepal, and Sri Lanka. This action will make cross-border trade between these countries and India easier (As per the Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025). Extension of Time for Repatriating Export Proceeds: Previously, the Indian exporters were allowed by the Reserve Bank of India (RBI) to open foreign currency accounts with a bank outside India for realisation of export proceeds, in January 2025, but they had to bring back (repatriate) any unutilised balances by the end of the next month after receiving them. The central bank has now decided to extend this repatriation period upto three months. This extension is for the foreign currency accounts with a bank in an IFSC (International Financial Services Centre) in India. (As per the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Seventh Amendment) Regulations, 2025).

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The RBI has also updated its Master Directions-Export of Goods and Services and Master Directions-Deposits and Accounts to include these new changes.