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Indian exporters now have a revised set of rules for deciding how export contracts can be priced and how export payments received in Indian Rupees will be treated under the Foreign Trade Policy.
The Directorate General of Foreign Trade (DGFT) issued Notification No. 30/2026-27 on 20 August 2026, amending Para 2.52 and Para 2.53 of the Foreign Trade Policy (FTP) 2023 with immediate effect.
The changes deal with two connected issues. Para 2.52 decides how export contracts and invoices may be denominated and how export proceeds can be realised. Para 2.53 explains when export proceeds received in Indian Rupees can be recognised for FTP benefits, incentives and fulfilment of export obligations.
For exporters, the change gives more room for INR-based trade, but the rule is not identical for every destination. ACU countries, Nepal, Bhutan and Iran have to be looked at separately. RBI and FEMA requirements also continue to matter.
| Particular | Details |
| Issuing Authority | Directorate General of Foreign Trade |
| Ministry | Ministry of Commerce and Industry |
| Department | Department of Commerce |
| Notification Number | 30/2026-27 |
| S.O. Number | S.O. 4601(E) |
| Date | 20 August 2026 |
| Effective Date | Immediate effect |
| Policy Amended | Foreign Trade Policy 2023 |
| Paragraphs Amended | Para 2.52 and Para 2.53 |
| Governing Law | Foreign Trade (Development & Regulation) Act, 1992 |
| Main Subject | Export contract currency and INR export realisation |
| Main Stakeholders | Exporters, businesses using FTP benefits and companies having export obligations |
| Special Treatment | ACU countries, Nepal, Bhutan and Iran |
| Related Framework | Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 |
The Gazette states that the Central Government has used powers under Sections 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with the relevant provisions of FTP 2023, to make these amendments.
For a business, this is not just a change in legal wording. It can influence the currency mentioned in a contract, the way an overseas buyer pays, and whether that payment can later be counted for an FTP benefit or export obligation.
FTP 2023 lays down the broader policy framework for India's export and import system. It covers several matters connected with foreign trade, including authorisations, export obligations, incentives and the treatment of export proceeds.
Within that framework, Para 2.52 deals with the denomination of export contracts. In simple terms, it answers a basic question: in what currency can an exporter raise the contract or invoice?
Para 2.53 deals with a different question. If the exporter receives the payment in Indian Rupees, can that receipt still be recognised for benefits or obligations under FTP?
These questions also overlap with India's foreign-exchange rules. DGFT may decide how an export is treated under FTP, but RBI and FEMA determine how cross-border payments can actually be received and settled.
That is why exporters should not read the amended FTP paragraphs in isolation. The payment route has to work under both the foreign-trade framework and the applicable foreign-exchange rules.
The amendment is intended to align the FTP provisions dealing with the denomination of export contracts, and eligibility for FTP benefits on INR export realisations with the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023.
In practical terms, the older FTP wording had to be brought closer to the newer payment framework.
This is useful because exporters often have to check two separate sets of rules. One set determines whether the payment route itself is permissible. The other determines how that payment will be treated under FTP.
The revised wording reduces some of that mismatch.
It does not, however, mean that any exporter can simply ask an overseas buyer to pay in Rupees and assume the transaction is compliant. The destination country, banking channel, RBI directions and the purpose for which the payment is later being used all remain relevant.
Para 2.52 deals with the currency of export contracts and invoices.
The revised provision now separates transactions according to the country involved instead of placing every export under one broad rule.
For export contracts and invoices that do not involve a member country of the Asian Clearing Union, the revised provision allows them to be denominated either in:
The export proceeds may also be realised either in foreign currency or in Indian Rupees. This distinction between denomination and realisation is worth understanding.
Denomination simply refers to the currency written in the contract or invoice. Realisation refers to the actual receipt of money by the exporter. An invoice might be raised in one permitted currency, but the way the money is finally received still has to comply with the applicable regulatory and banking framework.
Transactions involving member countries of the Asian Clearing Union are dealt with separately. For an ACU member country other than Nepal and Bhutan, the export contract is to be denominated in a currency determined by the ACU.
The revised wording also allows such transactions to be denominated and settled according to directions issued by RBI from time to time.
This means that an exporter dealing with an ACU country should not simply apply the same rule used for a buyer located in a normal non-ACU market.
The current RBI instructions need to be checked as part of the transaction.
Nepal and Bhutan have been given their own treatment.
The revised Para 2.52 says that export contracts involving Nepal and Bhutan are to be denominated and settled in Indian Rupees, or in accordance with directions issued by RBI from time to time.
That makes the destination country particularly important. A company selling to Nepal or Bhutan should not copy the currency clause from a contract used for Europe, the Middle East or another overseas market without checking whether it fits the applicable rule.
The amended provision also keeps a specific rule for exports made under EXIM Bank or Government of India Lines of Credit.
Contracts and invoices under these arrangements may also be denominated in Indian Rupees. The individual terms of the relevant Line of Credit would still need to be considered.
The amendment becomes clearer when the earlier and revised positions are compared directly.
| Area | Earlier Position | Revised Position | What It Means for Business |
| General export contracts | Contracts could be in freely convertible currency or INR, but realisation was generally linked to freely convertible currency, subject to specified exceptions | Non-ACU contracts can be in foreign currency or INR, and proceeds can be realised in foreign currency or INR | INR realisation receives clearer treatment |
| INR payment route | Earlier Para 2.52 contained specific Vostro-related conditions | Revised wording uses a broader country-based structure | Businesses need to apply the current payment framework |
| ACU transactions | Specific ACU Dollar/ACU Euro provisions appeared in the earlier rule | ACU-determined currency applies, with RBI directions also recognised | Current RBI instructions become important |
| Nepal and Bhutan | Treated separately from some earlier INR routes | Expressly covered under a separate clause | These destinations require a separate check |
| FTP benefits on INR receipts | Earlier wording referred to specified INR arrangements | Qualifying INR realisations can receive broader recognition | More INR receipts may potentially qualify |
| Iran | Subject to special treatment | Para 2.19 continues to apply | Iran transactions need an additional review |
The real change is therefore wider than a simple statement that exporters can now "take payment in Rupees."
INR settlement already existed within the regulatory framework. What DGFT has done is rewrite the FTP provisions so that they fit more closely with the current foreign-exchange rules and give clearer treatment to qualifying INR receipts.
| Destination | Contract Currency | Payment/Realisation | What Needs Attention |
| Non-ACU countries | Foreign currency or INR | Foreign currency or INR | Applicable banking and FEMA rules |
| ACU countries other than Nepal and Bhutan | Currency determined by ACU | As permitted under relevant framework/RBI directions | Current RBI instructions |
| Nepal | INR or as allowed under RBI directions | Subject to applicable RBI framework | Separate treatment |
| Bhutan | INR or as allowed under RBI directions | Subject to applicable RBI framework | Separate treatment |
| Iran | Relevant Para 2.52 treatment | INR may be recognised | Para 2.19 must also be checked |
This is probably the most useful way for an exporter to approach the amendment.
Before deciding the invoice currency or payment method, first identify the destination. The applicable rule can change based on that one fact.
The Asian Clearing Union matters because FTP does not treat an ACU transaction in exactly the same manner as every other export.
Under the revised Para 2.52, contracts involving ACU countries, other than Nepal and Bhutan, are tied to the currency determined under the ACU framework. At the same time, RBI directions may also govern how those transactions are denominated and settled.
For an exporter, the practical question is therefore not simply, "Can my buyer pay me in Rupees?”
The first question should be: "Which country is the buyer in, and which payment framework applies to that country?"
The notification does not provide a complete list of ACU members or reproduce every payment procedure. Those details should be checked from the current official framework when a specific transaction is being planned.
Para 2.53 deals with FTP schemes for exports where the proceeds are received in Indian Rupees. This part of the notification is especially relevant to businesses that:
Under the revised provision, exports to countries other than Nepal and Bhutan can qualify for FTP benefits, incentives and fulfilment of export obligations where the export proceeds are realised in Indian Rupees through the prescribed banking route.
Such qualifying INR realisations can be treated at par with exports where the money is received in foreign currency.
That is a useful change, but the words "qualifying INR realisation" are important. Simply receiving Rupees is not enough.
The revised Para 2.53 attaches conditions to the benefit. The export proceeds need to be realised through banking channels.
The amount also needs to be credited to an Indian Rupee account of a person resident outside India, where that account has been opened under the applicable Foreign Exchange Management (Deposit) Regulations, as amended from time to time.
Only after those conditions are considered does the FTP treatment become relevant.
A business should therefore avoid this assumption:
"The buyer paid us in INR, so the amount will automatically qualify for an export incentive."
That is not what the amendment says.
The correct question is whether the INR receipt satisfies the prescribed banking and account conditions and whether the underlying export independently qualifies under the FTP scheme being used.
This phrase can sound more complicated than it is. For the purposes covered by Para 2.53, an eligible export payment received in INR can be treated in the same manner as an eligible export payment received in foreign currency.
That can matter where a business is relying on the export for:
But parity of currency treatment does not cancel the rest of the scheme.
If an incentive requires certain product conditions, documentation or authorisation requirements, those still apply.
If an export obligation must be completed within a particular framework, receiving the money in INR does not by itself prove that every obligation has been met. The amendment removes one possible barrier. It does not remove all the other eligibility conditions.
Iran continues to require a separate check.
The revised Para 2.53 specifically states that, for exports to Iran, the INR treatment will apply subject to compliance with Para 2.19 of FTP. An exporter dealing with Iran should therefore not rely on Para 2.53 alone.
The current requirements of Para 2.19 should be reviewed separately before the business treats the INR payment as eligible for an incentive or export-obligation purpose. The Gazette amendment does not reproduce the full text of Para 2.19, so it would be unsafe to assume its requirements from this notification alone.
For many businesses, the practical effect will show up first in contracts, invoices and bank records rather than in a separate filing.
The business should look at:
Where INR is being used, finance teams should know how that amount is expected to be received and through which account structure.
The company should be able to connect the payment received with the actual export transaction.
A sensible internal file may bring together:
These are sensible internal controls. The notification itself does not create a new mandatory document checklist for every exporter.
The DGFT amendment does not replace India's foreign-exchange rules. RBI directions continue to matter, especially for ACU transactions, and trade with Nepal and Bhutan. Para 2.53 also directly connects qualifying INR realisation with accounts opened under the applicable FEMA deposit regulations.
A business planning an INR export transaction should therefore answer three separate questions:
If any one of these is ignored, the review is incomplete.
The amendment affects businesses differently, depending on their export structure, payment arrangements, banking relationships, and compliance responsibilities.
The revised rules give exporters more clarity on when INR can be used. That can be commercially useful, especially where the overseas customer is comfortable settling in Indian Rupees.
At the same time, businesses now need to pay greater attention to the destination country and the banking structure.
For an MSME, INR settlement may offer another workable payment option where the buyer and bank support it.
The difficulty is usually not the wording of the rule itself. Smaller businesses may not have separate legal, treasury and foreign-trade teams to check the contract, bank route and FTP benefit together.
A simple internal review before finalising the payment terms can therefore become valuable.
Finance teams may need to check:
Compliance teams should pay close attention to:
| Stakeholder | Likely Effect | Main Area to Review |
| Exporters | More flexibility in permitted currency arrangements | Contract and payment terms |
| MSME exporters | Another possible settlement route | Banking and documentation |
| Finance teams | More attention to currency and realisation records | Invoice and bank reconciliation |
| Treasury teams | INR may be considered for selected transactions | Payment route |
| Compliance teams | Country and scheme conditions need closer mapping | Para 2.52 and Para 2.53 |
| Businesses claiming FTP incentives | Qualifying INR receipts may be recognised | Scheme eligibility |
| Businesses with export obligations | Certain INR realisations may count | Authorisation and supporting records |
The revised rules can help businesses in a few practical ways.
For many non-ACU transactions, the FTP wording now clearly recognises both foreign currency and Indian Rupees.
That gives the exporter and overseas buyer more room to choose a commercially suitable currency, provided the applicable banking rules are followed.
A qualifying INR receipt can now be treated at par with a foreign-currency receipt for the FTP purposes covered by Para 2.53.
For exporters using FTP incentives or working under export obligations, which can make INR settlement more practical.
DGFT has expressly said that the amendment is meant to align the FTP provisions with the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023.
That alignment should make it easier to read both frameworks together. It still does not remove the need for transaction-specific checks.
The revised rule is more flexible, but it is not completely uniform.
Country Classification Comes First
A business cannot decide the payment structure without knowing whether the buyer is in:
More Than One Rule May Apply
A single export transaction may involve:
For a smaller business, keeping these rules connected can be difficult.
INR Does Not Automatically Mean Eligible
This is probably the biggest area where confusion can arise. INR payment is permitted in a wider set of situations, but that does not mean every INR payment qualifies for an incentive.
The banking route and scheme conditions still matter.
On balance, the amendment appears to offer more flexibility than an additional burden. The biggest positive is that the FTP now gives clearer recognition to eligible export payments received in Indian Rupees. This is useful for businesses that want to use permitted INR settlement without losing FTP treatment simply because the payment was not received in foreign currency. It also brings the trade-policy wording closer to the foreign-exchange payment framework.
Exporters will still need to look at the rules that apply to each country rather than treating every INR transaction the same way. ACU transactions require a separate check, while Nepal and Bhutan follow their own provisions. Iran continues to fall under Para 2.19, and RBI and FEMA requirements also remain relevant alongside the FTP.
For businesses that already have proper export and payment checks in place, this should be manageable. The problem arises when the amendment is reduced to a simple statement that "INR payment is allowed." The payment still needs to follow the correct route, meet the applicable country requirements and qualify under the relevant FTP conditions if a benefit is being claimed.
The notification itself does not say that its purpose is to make the Rupee an international currency. Its stated purpose is regulatory alignment.
Still, the change may make INR settlement more practical.
An exporter is more likely to consider an INR-based payment arrangement when there is clearer certainty that an eligible Rupee receipt can still receive the required FTP treatment.
Whether businesses actually choose INR will depend on commercial factors as well, including:
The amendment supports the use of INR where it is commercially and legally suitable. It does not make INR mandatory.
Exporters do not need to treat this as a new licence or registration requirement. The better approach is to review transactions that could be affected.
1. Check the Destination: First identify whether the buyer is located in:
2. Review the Contract Currency: Check whether the currency mentioned in the contract fits the revised Para 2.52.
3. Match the Invoice: The invoice currency should be consistent with the contract and the applicable regulatory treatment.
4. Confirm the Payment Route: Where the transaction will be settled in INR, confirm that the banking structure is permitted.
5. Check Para 2.53 before Claiming a Benefit: If the business wants to use that INR receipt for an FTP incentive or export obligation, verify the conditions under Para 2.53.
6. Review the Individual Scheme: The currency rule does not replace the requirements of the scheme or authorisation itself.
7. Keep the Records Consistent: Contract, invoice, shipping documents, bank records and FTP documentation should match each other.
| Review Point | Type of Check |
| Destination country identified | Regulatory |
| Para 2.52 treatment checked | Regulatory |
| Contract currency reviewed | Regulatory/commercial |
| Invoice currency checked | Internal control |
| Payment mechanism reviewed | Banking/regulatory |
| RBI directions checked where relevant | Regulatory |
| FEMA conditions considered | Regulatory |
| Para 2.53 eligibility checked | Regulatory |
| Individual FTP scheme checked | Regulatory |
| Export obligation reviewed where applicable | Regulatory |
| Iran Para 2.19 checked where relevant | Regulatory |
| Bank and export records matched | Internal control |
The checklist is meant to help businesses organise their review. It should not be treated as a separate statutory filing requirement created by the notification
The revised rules can be used more effectively if businesses avoid a few obvious interpretation risks.
These include:
Most of these problems are easier to correct before the transaction is completed than after an incentive or export-obligation claim is questioned.
The notification does not create a new export market, but it can make certain existing trade arrangements easier to structure.
Businesses dealing with overseas buyers who are comfortable paying in INR may now find the FTP treatment easier to understand.
That can give exporters another payment option in markets where the banking arrangement supports Rupee settlement.
Large exporters and businesses dealing with several countries may also review whether INR settlement makes sense for selected transactions.
That decision should still be based on commercial terms and actual currency exposure rather than on the DGFT amendment alone.
As more payment options become available, companies may need better checks before finalising:
The revised FTP provisions connect four things that businesses sometimes review separately: the destination country, contract currency, banking route and FTP benefit.
Corpseed can support exporters in bringing these areas together before a transaction is relied upon for a regulatory or scheme-related purpose.
Corpseed can help examine:
Support may include checking whether:
For businesses receiving payment in Indian Rupees, Corpseed can assist in reviewing the available documents against the relevant FTP conditions.
Banking approval or acceptance remains with the concerned authorised banking channel and applicable authority.
Where an exporter intends to rely on an INR receipt for an FTP purpose, Corpseed can support a review of:
The actual benefit will continue to depend on the conditions of the relevant scheme or authorisation.
A document-level review can identify mismatches between:
Para 2.52 itself refers to RBI directions issued from time to time. Businesses using INR trade arrangements may therefore need to keep track of later DGFT, RBI and FEMA changes.
Corpseed's export compliance services can support businesses with regulatory interpretation, document review, DGFT-related compliance assistance and ongoing monitoring.
Final recognition of export proceeds, incentives, export obligations or banking arrangements remains subject to the applicable rules and the competent authorities.
DGFT's Notification No. 30/2026-27 has changed Para 2.52 and Para 2.53 of FTP 2023 with immediate effect from 20 August 2026.
For exporters, the practical points are straightforward:
For businesses planning to use INR settlement, the safest approach is to check the destination, banking route and FTP purpose together before finalising the transaction.
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