Reserve Bank of India (RBI) has made significant changes to its currency management regulations to simplify and support external trade and payments.
An RBI press release said that Authorized Dealer (AD) banks in India and their overseas branches can now lend in Indian rupees to individuals and institutions in Bhutan, Nepal and Sri Lanka, including banks in these jurisdictions, to facilitate cross-border trade transactions.
In January 2025, the Reserve Bank allowed Indian exporters to open foreign currency accounts with a bank outside India for realization of export earnings. Unused balances on these accounts must be repatriated no later than the end of the month following the date of realization. It has now been decided that the time limit for repatriation will be extended to three months if foreign currency accounts are held with a bank with the IFSC in India.
“The instructions in the Master Direction – Exports of Goods and Services and Master Direction – Deposits and Accounts to implement these changes have also been amended accordingly,” the RBI notice said.
RBI had issued a statement on development and regulatory policies on October 1 this year. This move is part of ongoing efforts to ‘facilitate external trade and payments’. The Reserve Bank has made 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. (ANI)
Published on October 14, 2025
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