Policy on exports and imports

1. Background

The regulatory framework governing the export/import of goods and services into India is primarily based on the Foreign Exchange Management Act, 1999 (FEMA), the rules, regulations, and directions issued thereunder by the Reserve Bank of India (RBI), read together with the prevailing Foreign Trade Policy (FTP) notified by the Government of India.

Export/Import transactions are classified as current account transactions under FEMA and are subject to regulatory oversight by the RBI. The Foreign Exchange Management (Current Account Transactions) Rules, 2000 shall continue to remain applicable and are not superseded by the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026.

Following a comprehensive review of the regulatory framework governing export and import transactions under FEMA, 1999, the RBI has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (hereinafter – the Regulations). These Regulations are aimed at facilitating ease of doing business, simplifying regulatory compliance, and enabling Authorised Dealers (AD Category - I Banks) to provide faster, more efficient, and risk-based services to their customers.

The Regulations shall come into effect from October 1, 2026. Export/Import transactions, initiated prior to October 1, 2026, shall continue to be governed by the regulations and instructions that were applicable on the date of initiation, unless otherwise specifically provided by the RBI.

In exercise of the powers conferred under the Foreign Exchange Management Act, 1999 (Act 42 of 1999), the RBI has directed that Authorised Dealers shall ensure strict compliance with the provisions of FEMA, the rules, regulations, and directions issued thereunder, as well as the prevailing Foreign Trade Policy, while processing export/import transactions.

Accordingly, Authorised Dealers shall:

· Ensure that all export/import transactions are undertaken in accordance with FEMA, the applicable rules and regulations, RBI directions, and the prevailing Foreign Trade Policy.

·  Route all regulatory references to the RBI through the PRAVAAH Portal.

· Report any doubtful or suspicious transactions to the Directorate of Enforcement (DoE) in accordance with the applicable regulatory instructions.

· Exercise appropriate due diligence and adopt a risk-based approach while processing export/import transactions to ensure compliance with all applicable regulatory requirements.

These directions have been issued by the RBI under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999, and other enabling provisions thereof.

With the coming into force of the revised directions, the Master Direction – Export of Goods and Services, the Master Direction – Import of Goods and Services, and the circulars listed in the Annex to the Circular No. 20 dated January 16, 2026 “Export and Import of Goods and Services” shall stand superseded. Consequent to the same, SBER Bank (hereinafter – the Bank) has issued this Internal Regulatory Document for Exports and Imports (hereinafter referred to as the SBER Bank Internal Policy on Exports and Imports – SBER-EXIM) in two parts—for Import and Export Transactions separately.

This SBER-EXIM Policy shall prevail over and supersede all existing internal guidelines, to the extent such matters are addressed herein.

Upon their supersession, the Bank`s internal SBER-EXIM guidelines, as updated from time to time, shall prevail for both Import and Export transactions of the Bank.

This SBER-EXIM Policy shall apply to all branches, trade-processing units, centralised processing centres, treasury/operations units and other functions of the Bank handling export, import and MTT transactions.

Where another law, regulation, RBI/DGFT instruction, sanctions requirement or court/authority direction imposes a stricter requirement, the stricter applicable requirement shall prevail.

2. Objective

1. Provide a comprehensive framework for processing import transactions in accordance with the Foreign Exchange Management Act, 1999 (FEMA), the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, the Foreign Exchange Management (Current Account Transactions) Rules, 2000, the prevailing Foreign Trade Policy (FTP), and other applicable laws and regulations.

2. Ensure consistent, compliant, and efficient handling of import transactions across the Bank through standardized processes, governance, and operational controls.

3. Define the Bank`s internal governance framework, including the Delegation of Powers (DoP), Standard Operating Procedures (SOPs), Turnaround Times (TATs), and customer grievance redressal mechanisms for import transactions.

4. Provide guidance on the pricing of import-related products and services, as approved by the competent authority and communicated through the Bank`s internal circulars and the Bank`s website, wherever applicable.

The SBER-EXIM Policy shall remain effective for a period of one year from the date of its issuance or until it is revised, whichever is earlier. The Policy shall be reviewed periodically, on annual basis, as deemed appropriate. Any amendments, revisions, or modifications to the Policy shall be subject to the approval of the competent authority, which shall also have the authority to approve matters beyond the powers delegated to the internal approvers.

3. Introduction

Import:

1. SBER Bank, while processing import transactions, shall ensure that all imports into India are undertaken in compliance with the Foreign Trade Policy in force, the Foreign Exchange Management (Current Account Transactions) Rules, 2000, the applicable directions issued by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999, and the FEMA 23(R)/2026-RB (Export & Import of Goods & Services Regulations, 2026), wherever applicable. SBER Bank shall also ensure that such transactions are processed in accordance with its Board-approved internal policies and all applicable regulatory requirements.

2. SBER Bank, while processing import transactions, shall follow normal banking procedures and adhere to the provisions of the Uniform Customs and Practice for Documentary Credits (UCPDC) and other applicable international banking practices while opening Letters of Credit (LCs) for imports into India on behalf of its customers.

3. SBER Bank shall advise importers to ensure compliance with the applicable provisions of the Income-tax Act, 1961, and any other relevant tax laws and regulations in force in India, wherever applicable.

Export:

1. Export trade is regulated by the Directorate General of Foreign Trade (DGFT) and its regional offices, functioning under the Ministry of Commerce and Industry, Department of Commerce, Government of India. Policies and procedures required to be followed for exports from India are announced by the DGFT, from time to time.

2. AD Category - I banks may conduct export transactions in conformity with the Foreign Trade Policy in vogue and the Rules framed by the Government of India and the Directions issued by Reserve Bank from time to time.

3. The directions contained in this document should be read with the Foreign Exchange Management (Current Account Transactions) Rules, 2000.

4. Manner of receipt and payment

The receipts / payments through the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 (FEMA 14(R)/2023-RB): Nepal / Bhutan trade in INR (FCY only where the Nepal Rashtra Bank permits); other ACU members via the ACU mechanism; all other countries in INR or FCY – always through an AD / authorised person. Regulation 4(2) requires the AD to credit / debit only after satisfying itself of the transaction`s genuineness, simultaneously closing / updating EDPMS / IDPMS; its proviso and further proviso allow self-declaration closure of entries up to ₹10 lakh (or FCY equivalent) per bill, singly or via consolidated quarterly declaration – carrying forward the relief first introduced by RBI`s A.P. (DIR Series) Circular No. 12 dated October 1, 2025.

5. Set off of export receivables against import payables

An Authorised Dealer may allow set-off of export receivables against import payables from/to the same overseas buyer or supplier or with their overseas group or associate companies, within the stipulated period for realisation of export proceeds or extended period, if any, allowed by the Authorised Dealer.

6. Third party receipts and payments

An Authorised Dealer may permit third party (other than the parties undertaking export and import) receipts and payments for export and import transactions provided that the Authorised Dealer is satisfied with the bonafides of the transactions.

7. Merchanting trade transaction (mtt)

(1) A person undertaking Merchanting Trade, in accordance with the Foreign Trade Policy, shall ensure that:

(a) The period between the outward remittance and inward remittance or vice versa does not exceed six months:

Provided that the Authorised Dealer may, on request citing reasons for delay, allow extension of time, if the Authorised Dealer is satisfied of the reasons cited.

(b) Outward remittances are sent only to the overseas seller and inward remittances are received only from the overseas buyer:

Provided that the Authorised Dealer may, on request from the customer citing reasons, allow receipt from and/ or payment to any third party, if the Authorised Dealer is satisfied of the reasons cited.

(c) The documents evidencing the MTT are provided to the Authorised Dealer, to establish the genuineness of the transactions.

(2) An Authorised Dealer shall:

(a) Credit or debit the account of its customer for any cross-border transaction related to MTT after having been satisfied with the genuineness of the same and shall, simultaneously close or update the respective entry in EDPMS and/or IDPMS.

(b) Monitor and follow-up with the person undertaking merchant trading to ensure that both the legs of the transaction are completed within the period and manner as specified in these Regulations.

8. Reporting

(1) EDPMS (Export Data Processing and Monitoring System) and IDPMS (Import Data Processing and Monitoring System).

An Authorised Dealer:

(a) shall enter details of EDF (of its customers) as received from non-EDI (Electronic Data Interchange) port in EDPMS within five working days of receipt of EDF.

(b) shall enter details of EDF of service (of its customers) in EDPMS within five working days of receipt of EDF from an exporter.

(c) shall enter details of import (of its customers) as received from non-EDI port in IDPMS within five working days of receipt of documents.

(d) shall enter details of import of service, in IDPMS, as declared and submitted by the importer, within five working days of receipt of documents.

(e) shall enter details of inward and outward remittances for all exports, imports and Merchanting Trade Transactions (MTT) in EDPMS and/ or IDPMS.

(f) shall monitor all transactions in EDPMS and IDPMS for closure of outstanding entries and follow-up with an exporter, an importer and person undertaking MTT for submission of documents for the same.

(g) where a transaction is transferred between ADs, shall obtain appropriate intimation / status confirmation and system reconciliation.

Mark-off/closure of entries:

(h) shall in the case of an export, mark-off the entry in EDPMS after ensuring that the export value has been realised.

(i) shall in the case of an import, mark-off the entry in IDPMS after ensuring that the payment for the import has been made.

(j) may on request by an exporter citing reasons, close the entry relating to export advance transactions in EDPMS, where no export has been made and where refund of such advance is not possible, after having been satisfied of the genuineness of the reasons cited.

(k) may on request by an importer citing reasons, close the entry relating to import advance transactions in IDPMS, where no import has taken place and where repatriation of such advance is not possible, after having been satisfied of the genuineness of the reasons cited.

(l) may on the request of importer, close the entry in IDPMS where import transaction has been settled at reduced value, after having been satisfied of the genuineness of the reasons cited.

(m) shall in the case of an MTT, close or update the respective entry in EDPMS and IDPMS after making the receipt and payment for both legs of the MTT.

(2) An Authorised Dealer shall report all foreign trade transactions in Foreign Exchange Transaction Electronic Reporting System (FETERS) in terms of extant guidelines issued by the Reserve Bank from time to time.

9. Delegation of powers for internal approvals for each process

Delegation of powers for internal approvals for each process is carried out in accordance with internal regulatory documents along with the procedure established by the Bank.

The responsible departments of the Bank:

1) for Exports – the Client Support Operations Department (the Operations);

2) for Imports – the Transactional Business Development Division of the Department of the Development of Settlements and Payment Systems.

Deviations in Export Processes

Any deviations or exceptions identified in the export processes should be documented and brought to the attention of the Head of Department – Operations by the staff of the Client Support Operations Department for review and necessary action.

The deviations should include details of the nature of the exception, the relevant transaction/process, the reason for the deviation, and the corrective action taken or proposed.

Below delegation for Import transactions:

10. Escalation process for handling customer grievances and an appeal mechanism

Customer focus is one of the core values of the Bank. The Bank aims to ensure quick and effective handling of customer grievance, as well as prompt corrective preventive action (including correction of the process, wherever required) in order to avoid recurrence. In order to meet the above objective, the Bank has outlined a framework for redressal of customer grievances. Through the Grievance Redressal Policy of Sberbank Branch in India (https://sber.bank.in/customer-information/grievance-redressal), the Bank shall ensure that a suitable mechanism exists for receiving and addressing grievances from its customers.

11. Charges

An Authorised Dealer shall ensure that the charges levied for handling transactions and associated processes are reasonable and proportional to the services rendered. An Authorised Dealer shall not levy any charges or penalty on its constituent (exporter or importer or merchant trader) for any regulatory delay/violation by the constituent.

All the charges levied on Export/Import are included in the List of charges (Schedule of Tariff) which is approved by the High Power Local Branch Committee and presented on the official website of the Bank: https://sber.bank.in/customer-information/tariffs-and-conditions.

12. General guidelines for imports

12.1. SBER Bank shall ensure compliance with the following:

a. The Bank shall comply with the Know Your Customer (KYC) guidelines issued by the Reserve Bank of India (Department of Banking Regulation) in all its dealings.

b. The Bank shall verify the bona fides of all transactions and comply with the applicable provisions of the Prevention of Money Laundering Act (PMLA), internal sanctions guidelines, and other applicable regulatory requirements. In the absence of specific regulatory provisions, the Bank shall be guided by established trade practices.

12.2. Remittances for Import Payments

SBER Bank shall permit remittances towards import payments into India after satisfying itself that all requisite information and documents have been furnished by the importer and that the remittance relates to a bona fide trade transaction in compliance with the applicable laws, rules, and regulations in force.

12.3. Import Licenсes

Except for goods included in the negative list under the prevailing Foreign Trade Policy, which require specific licenсes, Letters of Credit may be opened freely and import remittances may be permitted.

While opening Letters of Credit, handling import collection bills, and processing advance remittances, the “For Exchange Control purposes” copy of the licence or digital licence along with client confirmation for the balance amount available prior to remitting any payment in the absence of Bill of Entry available in IDPMS shall be obtained.

The Bank shall ensure compliance with all special conditions, if any, attached to such licences.

12.4. Obligations of Purchasers of Foreign Exchange

(i) Obligations of Purchasers of Foreign Exchange.

In terms of Section 10(6) of the Foreign Exchange Management Act, 1999 (FEMA), any person acquiring foreign exchange may utilize such foreign exchange either for the purpose declared by such person to an Authorized Dealer under Section 10(5) of the Act or for any other purpose for which acquisition of foreign exchange is permitted under FEMA or the rules and regulations made thereunder.

Any person acquiring foreign exchange from an Authorized Dealer Category-I (AD Category-I) Bank may utilize such foreign exchange:

·     For the specific purpose declared at the time of remittance; or

·     For any other current account or capital account transaction permitted under:

·     FEMA provisions, rules, and regulations issued thereunder, including the Foreign Exchange Management (Current Account Transactions) Rules; and

·     Notifications, directions, and regulations issued by the Reserve Bank of India from time to time.

Accordingly, the Bank shall exercise due diligence to ensure that:

·    The remittance is permissible under the applicable FEMA framework;

·    The underlying transaction does not fall under any prohibited or restricted category; and

·  The remitter provides appropriate declarations and/or undertakings confirming the permissible nature of the transaction.

While the regulations provide flexibility in utilisation of foreign exchange, the responsibility for ensuring admissibility of the transaction and end-use verification, wherever prescribed by the RBI, shall continue to rest with the Bank. Any misuse, diversion, or utilisation of foreign exchange for impermissible purposes shall attract applicable penal provisions under FEMA.

(ii) Verification of Import of Goods Against Foreign Exchange Remittance.

Where foreign exchange acquired has been utilised for import of goods into India, the Bank shall ensure that the importer furnishes satisfactory evidence of import, such as Bill of Entry, Postal Appraisal Form, Customs Assessment Certificate, or any other applicable documentary evidence.

The Bank shall satisfy itself that goods equivalent to the value of the foreign exchange remitted have been imported into India and that the import transaction complies with the applicable FEMA and Customs regulations.

The Bank shall ensure that all import remittances outstanding as on the notified date are appropriately reported/uploaded in IDPMS.

The Bank may, wherever considered necessary, obtain an independent Chartered Accountant (CA) / Auditor Certificate confirming the bona fides of the transaction.

The importer shall provide documentary evidence establishing that:

·     Goods equivalent to the value of the foreign exchange remitted have actually been imported into India; and

·     The import transaction is in compliance with applicable regulatory requirements.

Acceptable evidence of import shall include, but not be limited to:

·     Bill of Entry (BoE) duly assessed by Customs and reflected in IDPMS;

·     Postal Appraisal Form (PAF) for imports through postal channels;

·     Customs Assessment Certificate, wherever applicable; and

·     Any other supporting documentary evidence as deemed appropriate.

The Bank shall verify and match the remittance details with the relevant import documents, including value, currency, and importer details, and ensure compliance with the prescribed reporting and submission timelines.

12.5. Time Limit for Settlement of Import Payments

Transactions prior to 01 October 2026 (Outstanding with the Bank).

1.       As per the extant regulations, remittances against imports should be completed not later than six months from the date of shipment, except in cases where amounts are withheld towards guarantee of performance or similar obligations.

2.       As a special relaxation due to the COVID-19 pandemic, effective 22 May 2020, the time limit for completion of remittances against normal imports (except where amounts are withheld towards guarantee of performance, etc.) was extended from six months to twelve months from the date of shipment for imports made on or before 31 July 2020.

3.       The Bank may permit settlement of import dues delayed due to disputes, financial difficulties, or other genuine reasons. However, interest, if any, on delayed payments, usance bills, or overdue amounts may be remitted only for a period up to three years from the date of shipment, subject to the applicable RBI directions.

Transactions post 01 October 2026.

Calculation of due date:

Direct: Bank will monitor its IDPMS entries and follow up with the respective importers for making payment for its imports within the period* specified in the underlying contract.

The Bank will, on request from the importer citing reasons for the delay, allow extension of time for making payment, beyond the period specified in the contract, if satisfied with the reasons cited.

All customers will be instructed to clearly mention the payment terms and tenor. Before allowing payment for such cases, the Bank must extend the due date. Also, any applicable Trade Credit Reporting will need to be done.

Services: Bank will insist for client declaration and evidence of delivery of service as per details mentioned below. Standard document should consist of:

a) Client confirmation / declaration confirming the delivery of service (up to USD 0.5 Mln.);

b) CA Certificate for value beyond USD 0.5 Mln. or equivalent.

Trade Credit Reporting:

All the import transaction (goods & services) with usance period more than 180 days are eligible for trade credit reporting.

Advance payment for goods & services: In case a specific due date/tenor is not mentioned on PI/PO/supporting document, the Bank will consider a period of 180 days from the remittance date for submission of Bill of Entry / proof of service delivery.

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*Currently remittance date will be considered, post development of capturing due date as per customer`s contract in CBS, the same will read as “due date”.

12.5.A. Extension of time period for Import payment

Procedure for a time extension for payment to be made beyond the period specified in the contract or invoice

The importer needs to submit a written request to the AD before or promptly after the contractual due date, citing the specific reason for the delay (e.g., a quality dispute, a documentary discrepancy, or a financing delay), together with the underlying /invoice/Bill of Entry reference. The AD records its satisfaction of the reasons cited and communicates the extended timeline.

12.6. Advance Remittance

SBER Bank may facilitate advance remittance where the overseas supplier requires payment before shipment of goods or rendering of services.

Advance remittance may be permitted subject to the following:

·     The importer shall hold a valid electronic import licence wherever required under the prevailing EXIM Policy.

·     Payment shall normally be remitted directly to the overseas supplier. In case of third-party payments, the Bank shall satisfy itself regarding the bona fides of the transaction and compliance with the applicable guidelines.

·     Documentary evidence supporting the value of the goods/services and the supplier`s requirement for advance payment shall be obtained.

·   Where the advance remittance exceeds the threshold prescribed under the Bank`s internal policy, a Guarantee/Standby Letter of Credit issued by an international bank of repute in favour of the importer shall be obtained. Any exception shall be dealt with as per the Bank`s deviation matrix.

·     As per RBI directions, advance remittance and all subsequent payments under the same import contract shall normally be routed through the same Authorised Dealer. A change in the Authorised Dealer may be permitted after due intimation to both the existing and the new Authorised Dealer. Customer needs to provide a written intimation of the change, addressed to both the existing and the new AD; the existing AD`s confirmation/letter of intimation (or at minimum, a statement of the outstanding advance position and EDPMS/IDPMS reference) for the new AD`s records; and the underlying export/import contract, to enable the new AD to continue monitoring the shipment/import obligation against the advance already received/paid.

·     The Bank shall permit advance remittance only after satisfying itself about the genuineness of the transaction and the requirement for making the advance payment.

·     Where an importer is unable to import within the contract period, or the extended period (can be extended twice with 180 days at a time for non-capex goods) against a specific supplier, the Importer shall repatriate the advance payment made, if any. In absence of repatriation or where the IDPMS entry has not marked-off, any future advance payment for imports by the importer shall require and unconditional, irrevocable standby letter of credit or a guarantee from and international bank of repute or a guarantee of an Authorized Dealer in India, which is issued against a counter-guarantee of international bank of repute.

12.6.1. Advance Remittance for Import of Goods

(i)    As AD Category - I bank, we may allow remittances exceeding USD 2,00,000 or its equivalent but not exceeding USD 5 million, in case customer is unable to obtain Bank guarantee /SBLC from overseas suppliers, basis:

a.   Exceeding USD 2,00,000 upto USD 5,00,000 - reason for non-submission from the client and confirmation of the track record of beneficiary;

b.    Exceeding USD 5,00,000 - KYC report on the overseas beneficiary other than State owned/Listed entity/Public sector undertakings; or

c.    In case KYC report is unavailable, approval from Business (Head of Corporate and Financial Institutions Department) giving basis of satisfaction about the track record of beneficiary and bonafides of the importer & Compliance officer (through email or sign on checklist).

(ii)    Bank is required to create Outward Remittance Message (ORM) for all such outward remittances in IDPMS & follow other extant IDPMS guidelines.

(iii)  In case a specific due date/tenor is not mentioned on PI/PO/supporting document, the Bank will consider a period of 180 days from the remittance date for submission of Bill of Entry / proof of service delivery.

12.6.2. Advance Remittance for Import of Rough Diamonds

(a) Advance remittance would be permitted without any limit and without any BG/SBLC for import into India from overseas mining companies having the recommendation of GJEPC (Importers other than PSU or Department/undertaking of Government of India/ State Government).

(b) Beneficiary of the remittance to be checked by TBDD before making the remittance that the same is GJEPC approved.

(c) No third party payments are allowed for such cases – payments to be made directly to the account of the overseas mining company.

(d) Declaration from client that advance remittance is not for import of conflict diamonds and necessary KPC certificate (Kimberly Process Certificate) will be submitted along with Bill of entry to Sberbank.

(e) The Bank will undertake the transaction based on its commercial judgment and after being satisfied about the bona fides of the transaction.

12.6.3. Advance remittance for Import of Services

SBER Bank may allow advance remittance for import of services without any ceiling subject to the following conditions:

(a) Where the amount of advance exceeds USD 500,000 or its equivalent, a guarantee from a bank of international repute situated outside India, or a guarantee from an AD Category - I bank in India, if such a guarantee is issued against the counter-guarantee of a bank of international repute situated outside India, should be obtained from the overseas beneficiary.

(b) the Bank is required to create Outward Remittance Message (ORM) for all such outward remittances in IDPMS & follow other extant IDPMS guidelines.

(c) In case a specific due date/tenor is not mentioned on PI/PO/supporting document, the Bank will consider a period of 180 days from the remittance date for submission of proof of service delivery.

Note: The download of software to be considered as service import and accordingly maximum amount of advance that can be sent remitted without counter BG is USD 500,000. However, in case of import on a CD, Floppy Disk or any other physical form will be considered as goods and cleared through a bill of entry. The maximum amount of advance that can be remitted without counter BG is as per limit applicable for goods import.

Further, following should be ensured in case of advance remittance towards non-physical import:

a)      An undertaking shall be taken from the importer that a CA certificate will be submitted to SBER Bank within the contract period, or the extended period or 180 days from date of advance import payment if not specific period/tenor mentioned . The said certificate from Chartered Accountant shall be to the effect that the software / data / drawing / design has been received by the importer and the payment has been made in books of account of the importer client.

b)      A declaration shall be taken from the customer duly stating that they will keep the Customs Authorities informed of the imports made by them for under this clause.

12.6.4. Advance Remittance for Import of Aircrafts/Helicopters and other Aviation Related Purchases

1.       As a sector specific measure, entities which have been permitted under the extant Foreign Trade Policy to import aircrafts and helicopters (including used / second hand aircraft and helicopters) or any other person who has been granted permission by the Directorate General of Civil Aviation (DGCA) to operate Scheduled or Non-Scheduled Air Transport Service (including Air Taxi Services), can make advance remittance without bank guarantee or an unconditional, irrevocable Standby Letter of Credit, up to USD 50 million. Accordingly, banks may allow advance remittance, without obtaining a bank guarantee or an unconditional, irrevocable Standby Letter of Credit, up to USD 50 million, for direct import of each aircraft, helicopter and other aviation related purchases.

2.       Importers of Aircrafts/ Helicopters and other Aviation related Purchases, not eligible under clause (1) above, can make advance remittance without bank guarantee.

3.       The remittances for the transactions at 1 and 2 above shall be subject to the following conditions:

a.       the Bank will undertake the transactions based on its commercial judgment and after being satisfied about the bona fide of the transactions. KYC and due diligence exercise should be done by the Bank for the Indian importer entity and the overseas manufacturer company as well. Advance payments should be made strictly as per the terms of the sale contract and directly to the account of the manufacturer (supplier) concerned.

b.       Advance payments should be made directly to the supplier or to Escrow Agent as per the terms of the sale contract.

c.       In the case of a Public Sector Company or a Department/ Undertaking of Central /State Governments, the AD Category - I bank shall ensure that the requirement of bank guarantee has been specifically waived by the Ministry of Finance, Government of India for advance remittances exceeding USD 100,000.

d.       Physical import of goods into India is made within six months (three years in case of capital goods) from the date of remittance and the importer gives an undertaking to furnish documentary evidence of import within fifteen days from the close of the relevant period. It is clarified that where advance is paid as milestone payments, the date of last remittance made in terms of the contract will be reckoned for the purpose of submission of documentary evidence of import.

e.       Prior to making the remittance, Bank shall ensure that the requisite in principle approval of the Ministry of Civil Aviation in case of Scheduled Air Service Operators and in other cases approval of the Director General of Civil Aviation/ other agencies in terms of the extant Foreign Trade Policy has been obtained by the company, for import.

f.        In the event of non-import of aircraft and aviation sector related products, Bank should ensure that the amount of advance remittance is immediately repatriated to India.

g.       Bank to ensure generation of ORMs, BoE entries and BoE settlement with the respective ORMs etc. as per extant IDPMS guideline.

4.       Importers are allowed to make advance remittance for import of shipping vessel, without bank guarantee, or an unconditional, irrevocable standby Letter of Credit, up to USD 50 million, subject to the conditions mentioned above under point no.III, as applicable.

12.7. Interest on Import Bills of Goods & Services

Interest applicability will be as per the contract terms only. SBER Bank will allow payment of interest on usance bills or overdue interest on delayed payments for a period of less than three years from the date of shipment at the rate prescribed for trade credit from time to time.

An importer shall ensure that interest payable, if any, on delayed payment for imports shall not exceed the all-in-cost ceiling of trade credit in terms of the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, as amended from time to time. An AD cannot process a remittance that would exceed the prescribed ceiling. For other scenarios like (a) imports - pre-payment of usance bill / receipt of interest for the advance payment made by importer; (b) exports – receipt of delayed payment / extension on time for export realisation, the interest payable can be as per the contractual rate agreed between the importer and exporter.

12.8. Remittances against Replacement Imports

Where imported goods are received short, damaged, short-landed or are lost during transit, and the Exchange Control Copy of the import licence or digital licence has already been utilised for opening a Letter of Credit in respect of the original shipment, the bank may cancel the original endorsement to the extent of the value of the goods so lost and permit a fresh remittance towards the replacement shipment without referring the matter to the Reserve Bank, provided that the insurance claim in respect of the lost goods has been settled in favour of the importer.

It shall be ensured that the replacement consignment is shipped within the validity period of the import licence.

The bank shall also ensure that the appropriate remark/indicator is recorded for ORM mark-off/closure of Bills in IDPMS, as applicable, in accordance with the extant IDPMS guidelines.

12.9. Guarantee for Replacement Import

In cases where replacement goods for defective imports are dispatched by the overseas supplier before the defective goods previously imported are re-exported from India, the Bank may, at the request of the importer, issue a guarantee for the return/despatch of the defective goods based on its commercial judgment.

12.10. Import of Equipment by Business Process Outsourcing (BPO) Companies for their Overseas Sites

The Bank may permit BPO companies in India to remit funds towards the cost of equipment to be imported and installed at their overseas locations for establishing International Call Centres (ICCs), subject to the following conditions:

(i) The BPO company shall have obtained the necessary approvals from the Ministry of Communications and Information Technology, Government of India, and other relevant authorities for establishing the ICC.

(ii) The remittance shall be permitted based on the bank`s commercial judgment, satisfaction regarding the bona fides of the transaction, and in accordance with the terms of the contract.

(iii) The remittance shall be made directly to the overseas supplier`s account.

(iv) The Bank shall obtain a certificate from the Chief Executive Officer (CEO) or the statutory auditor of the importer company confirming that the equipment for which the remittance was made has been imported and installed at the overseas site.

(v) The Bank shall ensure compliance with the applicable IDPMS guidelines.

12.11. Direct Remittance for Imports

Definition: Direct remittance for imports refers to payments made by an importer to an overseas supplier through banking channels such as Telegraphic Transfer (TT) or Demand Draft (DD). These payments are linked to goods that have already been shipped by the foreign seller. The goods may either have reached the importer or still be in transit, but once shipment has occurred, the payment qualifies as a direct remittance against imports.

12.12. Receipt of Import Documents by the Importer Directly from Overseas Suppliers

Import bills and documents should be received from the banker of the supplier by the banker of the importer in India. Bank will not make remittances where import bills have been received directly by the importers from the overseas supplier, except in the following cases:

(i) The import would be subject to the prevailing Foreign Trade Policy.

(ii) The transactions are based on the Bank`s commercial judgment, and Bank is satisfied about the bona fides of the transactions.

(iii) KYC and due diligence exercise should be done and Bank should be fully satisfied about the financial standing/status and track record of the importer customer.

12.13. Receipt of Import Documents by the Bank Directly from Overseas Suppliers

At the request of importer clients, the Bank may receive bills directly from the overseas supplier as above, provided the Bank is fully satisfied about the financial standing/status and track record of the importer customer.

12.14. Import of Gold/Silver

(i) As per the guidelines prescribed by RBI under the 2026 guidelines, except for payment through India International Bullion Exchange IFSC Limited (IIBX), the Bank will not allow advance payment for Gold and Silver and other precious metals in any form including SEZs/EOUs.

(ii) Nominated banks and nominated agencies, as notified by DGFT, will be permitted to import gold on consignment basis. In addition to the above, qualified jewellers and Tariff Rate Quota Holders (TRQ Holders) under India-UAE CEPA, as notified by the International Financial Services Centres Authority (IFSCA), will be permitted to import gold under specific ITC (HS) Codes through IIBX. All sale of gold domestically will, however, be against upfront payment. Nominated banks are free to grant Gold Metal Loans.

(iii) The Status Holder Exporters shall adhere to the guidelines contained in the extant Foreign Trade Policy, as amended from time to time.

(iv) The import of gold coins and medallions will be permitted. However, prohibition on sale of gold coins and medallions will continue.

The Bank will submit the following returns under the Centralised Information Management System (CIMS) from December 26, 2023 onwards, the said activity is undertaken by Global Markets Department:

Return on half-yearly basis (end March/end September), showing the quantity and value of gold imported by the nominated banks/agencies/qualified jewellers/EOUs/SEZs in the Gems & Jewellery Sector, mode of payment-wise, under Return Code R133 named “Import of Gold by EOUs, Units in SEZ/EPZ and Nominated Agencies (HY)”.

Return on monthly basis showing the quantity and value of gold imports by the nominated agencies (other than nominated banks)/EOUs/qualified jewellers/SEZs in the Gems & Jewellery Sector during the month under report, as well as the cumulative position as at the end of the said month beginning from the first month of the financial year. The Return Code R132 is named “Import of Gold by EOUs, Units in SEZ/EPZ and Nominated Agencies (M)”.

Both the returns shall be submitted, even if there is a “Nil” position, by the 10th of the following month/half-year to which they relate.

For consignment based gold imports, it is necessary to follow the Risk Management Policy for Consignment-based Gold imports in its latest version.

12.15. Import of Gold Jewellery Including Jewellery Made of Precious Metals and/or Studded with Diamonds/Precious Stones/Semi-precious Stones

The Bank may permit Suppliers` Credit and Buyers` Credit (Trade Credit), including the usance period of Letters of Credit, for the import of gold in any form, including jewellery made of gold/precious metals and/or studded with diamonds, precious stones or semi-precious stones, subject to the overall credit period not exceeding 90 days from the date of shipment.

12.16. Transactions involving High sea sales shipments

High Seas Sales refer to transactions where the sale of goods takes place while the goods are on the high seas, including airspace beyond the jurisdiction of any country. In such cases, the original importer enters into a High Seas Sales Agreement and transfers ownership of the goods to the High Seas Sales Buyer (HSS Buyer) by endorsing the original transport documents (Bill of Lading/Air Waybill) in favour of the HSS Buyer.

Accordingly, the original importer transfers the title of the goods to another party, who subsequently files the Bill of Entry and completes customs clearance. The HSS Buyer makes payment to the original importer in Indian Rupees. The Foreign Trade Policy (FTP) recognizes and permits High Seas Sales of imported goods.

a. HSS agreement

Sea Shipment

(i) The High Seas Sales Agreement must be executed while the goods are on high seas and before vessel arrival/unloading in India. The HSS Agreement date should fall between the shipment date and Bill of Entry date. The branch shall ensure that the shipment date, stamped HSS Agreement date, and Bill of Entry date are in sync before processing.

(ii)  HSS transactions shall be permitted where the HSS Agreement is executed between the actual importer and the HSS buyer between the shipment date and Bill of Entry date.

(iii)  Due diligence shall be conducted to ensure that the commodity being imported is in line with the business activity of the HSS buyer/actual importer.

(iv)  HSS facilitates only the transfer of ownership of goods. Any agreement involving material alteration of goods shall not be considered a valid HSS transaction and should be avoided.

(v)  Multiple HSS agreements may be executed under a single import transaction where ownership is transferred through multiple parties. Each transfer shall be supported by a valid HSS Agreement. No HSS Agreement shall be executed after the arrival of goods on Indian shores.The Bill of Entry shall capture the details of the final HSS buyer, importer, and overseas supplier concerned.

(vi)  The Bank  shall ensure that past-dated imports are not accommodated under HSS under any circumstances.

Air Shipment

(i)   The Bank shall refrain from permitting HSS transactions involving air shipments.

(ii)   In exceptional cases, HSS transactions under the air route may be considered only with compliance approval.

(iii) All other applicable guidelines relating to due diligence and payment terms, as applicable for sea route HSS transactions, shall also be followed.

b. Bill of Entry

In HSS transactions, the Bill of Entry (BOE) is filed by the HSS Buyer using its own IEC, while the outward remittance is made by the actual importer. Accordingly, the BOE submitted to the bank will reflect the HSS Buyer as the importer and may also contain the name and/or IEC of the actual importer.

The Bank may accept such BOE as valid evidence of import, subject to satisfactory verification of all other supporting documents and matching of key details such as IEC of HSS Buyer, amount, currency, supplier name, etc., with the relevant IDPMS records. HSS-related details may not be available in IDPMS.

A valid HSS BOE should contain the supplier name, actual importer name, and HSS Buyer name on the face of the BOE. The HSS transaction should also be duly flagged by Customs in the BOE to identify it as an HSS trade.

ORM mark-off in the name of the actual importer shall be carried out upon submission of such BOE along with a valid HSS Agreement.

As a due diligence measure, the BOE copy containing the HSS flag shall be mandatorily obtained and verified thoroughly for all parties mentioned on the BOE before processing import outward remittances or carrying out ORM mark-off against the submitted BOE.

c. Issuance of Domestic Letter of Credit against HSS Agreement

As part of the due diligence process, in cases where a domestic Letter of Credit (LC) is proposed to be issued against an HSS Agreement, the LC terms shall mandatorily require submission of valid transport documents confirming the movement of goods from the Indian port to the warehouse premises of the HSS Buyer.

Any exception to the above requirement shall be permitted only with approval from the Compliance and AML Division.

d. Restricted Items

HSS transactions involving restricted goods shall be permitted only where the HSS Buyer possesses the requisite valid licence/approval. The relevant licence documents shall be obtained and verified while processing such transactions.

No separate transaction-specific approval shall be required, provided all required documents are in order and the transaction complies with the applicable guidelines. Any exception shall require prior approval from the Compliance and AML Division.

12.17. Transactions involving third party payments

The Bank will allow to make payments to a third party for import of goods, subject to conditions as under:

a.       Firm irrevocable purchase order / tripartite agreement should be in place. However, this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments / name of the third party being mentioned in the irrevocable order / invoice has been produced.

b.       The Bank should be satisfied with the bona-fides of the transactions and should consider the Financial Action Task Force (FATF) Statement before handling the transactions.

c.       The Invoice should contain a narration that the related payment has to be made to the (named) third party.

d.      Bill of Entry should mention the name of the shipper as also the narration that the related payment has to be made to the (named) third party. However, this requirement may not be insisted upon if bank is satisfied with the bonafides of the transaction and documentary evidence provided by the importer.

e.      Importer should comply with the related extant instructions relating to imports including those on advance payment being made for import of goods.

The settlement currency/mode adheres to FEMA 14(R)/2023 norms (freely convertible currency). Customer rationale notes, KYC and sanctions screening for the third party; assessment of FATF jurisdictional risks.

12.18. Closure of Bill of Entry (BoE) for Free of Cost (FOC) Imports under IDPMS

As per Customs Notification F. No. S/3-Misc-3/2001ACC (Gr-IIB) dated 31.01.2001, all import assessments are processed through the EDI system. Accordingly, Bills of Entry relating to Samples, No Commercial Value (NCV) goods, Free of Cost (FOC) consignments, and imports where the value is declared solely for Customs assessment are also generated under the EDI system and may be reflected in IDPMS. Although these Bills of Entry do not represent payable commercial transactions, they are captured in IDPMS at the value declared for Customs purposes, resulting in outstanding entries that cannot be marked off through the normal process. At SBER Bank, such cases are excluded from overdue calculations based on internal approvals.

Pursuant to the RBI Letter No. S1404/05.31.042/2025-26 dated 29 September 2025, the Reserve Bank of India has delegated the authority to AD Category - I banks to close such Bills of Entry directly in IDPMS, subject to satisfactory verification of the bona fides of the underlying transactions. Accordingly, this framework has been introduced at SBER Bank to operationalise the regulatory dispensation in a controlled and compliant manner. The framework shall apply to all existing outstanding and future Bills of Entry appearing in IDPMS where the underlying import is identified as Free of Cost (FOC), No Commercial Value (NCV), or Sample imports, based on the prescribed documentary evidence and/or customer declaration.

In cases of FOC imports, as no foreign exchange remittance is involved, closure of BoEs is permitted based on documentary evidence and internal due diligence, without outward remittance.

This process applies to the following categories of BoEs:

a) BoEs mapped to the SBER bank`s AD code.

b) BoEs mapped to AD codes of other banks where partial payment has been effected by the Bank and the residual value is requested to be closed under FOC.

c) BoEs submitted along with import payment requests where a portion of the BoE value represents FOC imports.

Scenarios and Documentation Requirements:

1) Scenario 1 – BoE explicitly evidencing Free of Cost import.

Where the BoE clearly indicates that the import is Free of Cost, the Bank shall obtain the following documents prior to closure:

·     Duly signed request letter from the importer seeking closure of BoE under FOC.

·     Commercial invoice indicating FOC nature.

·     Copy of the BoE.

·     Underlying agreement / supporting document / GR waiver certificate / Shipping Bill, if applicable.

·     In case of multiple BoEs, consolidated BoE details as an annexure in Excel.

2) Scenario 2 – BoE does not explicitly evidence Free of Cost import.

Where the BoE does not expressly mention FOC import, or where only BoE details (and not the copy) are submitted, additional documentation shall be obtained based on the BoE closure value and relationship manager (RM) recommendation, as detailed below.

3) Scenario 3 – Partial BoE value covered under Free of Cost.

In cases where import payment is effected for part of the BoE value and the balance value is under FOC:

·     The FX document checker shall retain the FOC BoE details in the daily transaction folder.

·     Post completion of import payment, the IDPMS team shall settle the outstanding ORM corresponding to the FOC portion of the BoE.

Any deviation from the above framework shall require prior approval from the Compliance and AML Division, with justification.

12.19. Bill of Entry

Bill of Entry is the evidence of import that the importer produces to the Authorised Dealer for the items imported by him.

Requirement of BOE as per types of Transactions:

(i)                Advance Remittance: In case of Advance Remittance, evidence of import will not be available at the time of remittance. Physical import of goods into India is made within contract period, or the extended period or 180 days from date of remittance if not specific period/tenor mentioned  (three years in case of capital goods) from the date of remittance. An undertaking should be taken from the customer to submit the BOE within prescribed timeline.

(ii)               Direct Remittance: Bill of Entry for direct import remittances will be mandatory for all remittances, irrespective of amount. It is expected that customers will submit Bill of Entry for all direct import payments as the import has already taken place. However, there may be exceptional cases of direct payment where bill of entry is not present, e.g: goods not cleared by Customs, shipment yet to reach Indian port etc. In all such cases declaration for BOE can be accepted with valid reason up to 90 days from the date of shipment.

(iii)             Collections:

Usance bill: In case of Collections for Documents against acceptance, normally the goods would be cleared before the due date of payment, authorized dealers should insist on production of evidence of import at the time of effecting remittance of import bill. However, if due to genuine reasons such as non-arrival of consignment, delay in delivery/ Custom clearance of consignment etc., and if Authorized Dealer is satisfied with the genuineness of request allow reasonable time not exceeding three months from the date of remittance to the importer to submit the evidence of import. In such cases an undertaking should be taken from the customer to submit the BOE within prescribed timeline.

Sight bill: In case of sight bills the BOE to be received within 90 days from the date of remittance & an undertaking to be taken from the customer to submit the BOE.

Letters of Credit:

Usance bill: In case of Letters of Credit, for documents against acceptance, normally the goods would be cleared before the due date of payment, Authorized Dealers should insist on production of evidence of import at the time of effecting remittance of import bill. However, if due to genuine reasons such as non-arrival of consignment, delay in delivery/ Custom clearance of consignment etc., and if Authorized Dealer is satisfied with the genuineness of request allow reasonable time not exceeding three months from the date of remittance to the importer to submit the evidence of import. In such cases an undertaking should be taken from the customer to submit the BOE within prescribed timeline.

Sight bill: In case of sight bills the BOE to be received within 90 days from the date of remittance & an undertaking to be taken from the customer to submit the BOE.

(iv)             High Sea Sale: In case of a High Sea Sale, the Bill of entry should mention the “original importer/ 1st importer” name along with an “HSS” notation and mention name of subsequent importer / Final buyer also. High sea sale agreement should also be taken.

(v)               FTWZ (Free Trade Warehousing Zones: Imported goods can be stored in FTWZ, for re-export / re-selling purposes for which Customs Authorities issue Ex-Bond Bill of Entry. AD banks to consider the Bill of Entry issued by Customs Authorities named as Ex-Bond Bill of Entry or by any other similar nomenclature, as evidence for physical import of goods.

12.20. Import not materialized

(i)     Where an importer is unable to import within the contract period, or the extended period, the importer shall repatriate the advance payment made, if any.

(ii)    If the advance payment is not repatriated by the importer within the contract period or extended period, if any, allowed by the Authorized Dealer or where the IDPMS entry has not been marked-off in terms of Regulation 18(1)(j), any future advance payment for imports by the importer shall require an unconditional, irrevocable standby Letter of Credit or a guarantee from an international bank of repute or a guarantee of an Authorized Dealer in India, which is issued against a counter-guarantee of an international bank of repute.

12.21. Follow-up by AD Category-I bank in case of Outstanding ORM and Bill of Entry under Imports

Bill of entry is the evidence of import that the importer produces to the Authorized Dealer for the goods imported by him. It is obligatory on the part of the Authorized dealer through whom the relative remittance was made to ensure that the importer submits the documentary evidence prescribed therein. In case of delay, the AD Bank must initiate timely follow-up and take action as per regulatory guidance.

(i)     Monitor IDPMS for outstanding transactions on monthly basis.

(ii)    Initiate client follow-up basis the outstanding data through email/letter:

- 1st Reminder (Overdue + 90 days ORM / T + 180 days BoE): Email reminder for BoE submission/ORM closure to customer;

- Final Notice (Overdue + 180 days ORM / T + 360 days BoE): Email Notice for BoE submission/ORM closure to customer.

(iii)  AD bank will oversee bank-wide ORM/BoE compliance, escalate non-compliance, report to RBI, STR filing on Importer.

(iv)  Failure to ensure timely closure by importer may result restrictions on future import transactions.

12.22. Other Remittance Facilities

1. Miscellaneous remittance facilities for residents are allowed in terms of Section 5 of the Foreign Exchange Management Act, 1999, read with Government of India Notification No. G.S.R 381(E) dated May 3, 2000. These Rules/ Regulations are amended from time to time to incorporate the changes in the regulatory framework and published through amendment.

2. Within the contours of the Rules/ Regulations, Reserve Bank of India also issues directions to Authorised Persons under Section 11 of the Foreign Exchange Management Act (FEMA), 1999. These directions lay down the modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/constituents with a view to implementing the regulations framed.

12.22.1. Release of Foreign Exchange by Authorised Dealers

(i) For release of foreign exchange to persons resident in India for various current account transactions, Authorised Dealer banks are to be guided by the Rules made by the Government of India under Section 5 of the Foreign Exchange Management Act, 1999 which are detailed in the Foreign Exchange Management (Current Account Transactions) Rules, 2000 (hereinafter referred to as the Rules) notified by the Government of India vide Notification No.G.S.R.381 (E) dated May 3, 2000, (Annex-1) as amended from time to time. In terms of the said Rules, drawl of foreign exchange for certain categories of transactions listed in Schedule I is expressly prohibited. Exchange facilities for transactions included in Schedule II to the Rules may be permitted by the Authorised Dealer banks provided the applicant has secured the approval from the Ministry/Department of the Government of India as specified therein. In respect of transactions included in Schedule III to the Rules, prior approval of the Reserve Bank would be required for remittance exceeding the specified limits. The release of foreign exchange up to the threshold ceilings specified in Schedule III stands delegated to the Authorised Dealer banks. All applications for release of foreign exchange exceeding the limits as prescribed in Schedule III to the Rules should be referred to the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank, under whose jurisdiction the applicant is functioning / residing.

(ii) “Drawal” of foreign exchange also includes use of International Credit Cards (ICC), International Debit Cards (IDC), ATM cards, etc. “Currency”, inter alia, includes ICC, IDC and ATM Cards. Accordingly, all Rules, Regulations made and Direction issued under the Act apply to the use of ICC, IDC and ATM Cards.

(iii) Release of foreign exchange is not admissible for travel to and transaction with residents of Nepal and Bhutan.

(iv) Prohibition:

Remittances in any form towards participation in lottery schemes are prohibited under the Foreign Exchange Management Act, 1999. Further, these restrictions are also applicable to remittances for participation in lottery like schemes existing under different names like money circulation scheme or remittances for the purpose of securing prize money/awards, etc.

12.22.2. Remittance done under Miscellaneous Remittances can be classified under 3 schedules:

Schedule 1: Transactions which are prohibited.

Schedule 2: Transactions which require prior approval of the Central Government.

Schedule 3: Notified by GOI Notification No. G.S.R 426I dated May 26, 2015 – Transactions which require prior approval from RBI if the amount involved is greater than the stipulated limit.

Transactions which do not fall under any of the above schedules can be undertaken provided all the FEMA regulations are complied.

Schedule 1: Transactions which are prohibited:

(i)     Remittance out of lottery winnings.

(ii)    Remittance of income from racing/riding etc. or any other hobby.

(iii)  Remittance for purchase of lottery tickets, banned / proscribed magazines, football, pools, sweepstakes etc.

(iv)  Payment of commission on exports made towards equity investment in Joint Ventures /Wholly Owned Subsidiaries abroad of Indian companies.

(v)    Remittance of dividend by any company to which the requirement of dividend balancing is applicable.

(vi)  Payment of commission on exports under Rupee State Credit Route, except commission up to 10% of invoice value of exports of tea and tobacco.

(vii) Payment related to “Call Back Services” of telephones.

(viii)          Remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme.

Schedule 2: Transactions which require prior approval of the Central Government:

Schedule 3: Notified by GOI Notification No. G.S.R 426I dated May 26, 2015.

This schedule has been divided under two parts:

(i)     Facilities for individuals.

(ii)    Facilities for persons other than individuals.

(i)     Facilities for individuals.

Individuals can avail of foreign exchange facility for the below purposes within the limit of USD 2,50,000 only. Any additional remittance in excess of the said limit for the following purposes shall require prior approval of the Reserve Bank of India.

Purposes:

a)                 Private visits to any country (except Nepal and Bhutan).

b)                 Gift or donation.

c)                 Going abroad for employment.

d)                 Emigration.

e)                 Maintenance of close relatives abroad.

f)                  Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying patient going abroad  as attendant to a for medical treatment/ check-up.

g)                 Expenses in embassy in connection with medical treatment abroad.

h)                 Studies abroad.

i)Any other current account transaction.

Note: For the purposes mentioned under (d), (g) and (h) the individual may avail in exchange in excess of the LRS limit if required by any country of emigration, medical institution offering treatment or the educational university.

(ii)    Facilities for persons other than individuals.

The below remittances by persons other than individuals would require prior approval of RBI.

a)      Donations by companies where the remittance amount exceeds 1% the foreign exchange earnings of the company during the previous three financial years or USD 5,000,000 whichever is less, for:

–        Creation of Chairs in reputed educational institutes,

–        Contribution to funds (not being an investment fund) promoted by educational institution.

–        Contribution to a technical institution or body or association in the field of activity of the donor Company.

b)      Commission to agents abroad for sale of residential flats or commercial plots in India exceeding USD 25,000 or five percent of the inward remittance whichever is more per transaction.

c)      Remittances for consultancy services exceeding USD 10,000,000 per project in respect of infrastructure projects and USD 1,000,000 per project, for other consultancy services procured from outside India.

d)      Remittances by an entity for reimbursement of pre- incorporation expenses exceeding 5% of investment brought into India or USD 100,000 whichever is higher, by an entity in India.

12.22.3. Documentation List for Outward Remittance – A2 payments

Below are the mandatory documents to be collected along with the supporting documents as mentioned against each purpose code:

a) Request letter for outward remittance.

b) Form A2.

c) Apart from the above two, documents mentioned against each purpose code as per list in the Appendix 1 would also be required.

List of documents to be collected basis applicable purpose code is presented in the Appendix 1.

13. Processing of general guidelines for exports

The amount representing the full export value of the goods exported shall be received through an AD Bank in the manner specified in the Foreign Exchange Management (Manner of Receipt & Payment) Regulations, 2023 notified vide Notification No. FEMA 14(R)/2023-RB dated December 21, 2023.

13.1. Declaration of exports

(1) An exporter of goods shall furnish to the specified authority* a declaration in the Export Declaration Form (EDF) specifying the amount representing the full export value of goods, at the time of export:

Provided that the EDF will be deemed to be submitted as part of shipping bill for goods exported through Electronic Data Interchange (EDI) port;

Provided further that a traveller moving personal effects (which are either accompanied or unaccompanied) from India shall not be treated as exporter for the purpose of these Regulations.

(2) An exporter of services shall furnish to the specified authority, a declaration in EDF specifying the amount representing the full export value of services, within 30 days from the end of month in which invoice for services has been raised, provided that:

(a) the exporter of services who has exported services to one or more recipients in a month, may submit a single EDF for all such exports;

(b) the exporter of services other than software, may submit an EDF on or before the date of receipt of payment;

(c) the Authorised Dealer may, on a request from the exporter citing reasons for delay, extend the period for submission of the EDF after satisfying itself about the reasonableness of the request.

(3) In the case of a non-EDI port for export of goods; or where the specified authority for export of services is other than an Authorised Dealer, the duly authenticated EDF, shall be forwarded by the specified authority to the respective Authorised Dealer.

_____________________________________________________________________________________

* Regulation 2(1)(f) defines “Specified Authority” distinctly for goods, services and software, & separately for unit falling under Domestic Tariff Area(DTA), Special Economic Zone(SEZ) or Software Technology Parks of India(STPI).

For goods, the authority is the Commissioner of Customs in DTA and Development Commissioner in SEZ.

For Services other than Software, the authority is Authorised Dealer in DTA and Development Commissioner in SEZ.

For software, the authority is Authorised Dealer or STPI in DTA and Development Commissioner in SEZ.

13.2. Time period for realisation of exports

(1) The amount representing the full export value (or reduced export value in terms of Regulation 6 of the Regulations) of goods and services shall be realised (including by way of set off in terms of Regulation 7 of the Regulations) and repatriated by the exporter within the period specified below:

(a) fifteen months from the date of shipment in case of goods (other than goods exported to a warehouse outside India) and from the date of invoice in case of services;

(b) fifteen months from the date of sale of goods from the warehouse in case of goods exported to a warehouse outside India;

(c) as per payment terms of the contract, in case of project exports:

Provided that where the export of goods and services is invoiced or/and settled in Indian Rupees, the period for realisation and repatriation of full export value shall be eighteen months, from the date of shipment in case of goods (other than goods exported to a warehouse outside India), from the date of invoice in case of services, and from the date of sale of goods in case of goods exported to a warehouse outside India;

Provided further that the Authorised Dealer may, on request by an exporter citing reasons for the delay, allow extension of time for realisation of export proceeds beyond the specified period, if the Authorised Dealer is satisfied of the reasons cited.

(2) An Authorised Dealer shall put in place systems and processes to monitor and follow up with an exporter to realise export proceeds within the period specified above.

13.3. Reduction in the export realization

An Authorised Dealer may, on request from the exporter citing reasons for under-realisation or non-realisation of full export value, allow reduction in realisation of export value, provided the Authorised Dealer is satisfied of the reasons cited:

Provided that where the export value is up to ₹ 10 lakh (or its equivalent in foreign currency) per shipping bill (for goods) or invoice (for services), the reduction of export value (including non-realisation of full export value) may be permitted based on a declaration from the exporter.

13.4. Advance payment for exports

(1) An exporter shall, in case of advance receipt for export, route the advance amount, and realisation of export proceeds, if any, through the same Authorised Dealer. However, an exporter may route the transactions through any other Authorised Dealer provided the exporter has intimated the change to both the Authorised Dealers.

(2) An exporter shall ensure that interest payable, if any, on advance payment received for export shall not exceed the all-in-cost ceiling of trade credit in terms of the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, as amended from time to time.

13.5. Unrealised exports

If the export proceeds of an exporter remain unrealised for a period beyond one year from the due date of realisation or extended period, if any, allowed by an Authorised Dealer, the exporter shall undertake further exports only against receipt of full advance or an irrevocable Letter of Credit.

13.6. Export of goods and services against repayment of State credits

For the implementation of the provisions of the Inter banking arrangement, an Authorised Dealer shall adhere to instructions and directions issued by the Reserve Bank from time to time on export of goods and services against repayment of State credits granted by the erstwhile Soviet Union.

13.7. Export factoring

AD banks have been permitted to factor the export receivables so as to enable the exporters to improve their cash flow and meet their working capital requirements subject to conditions as under:

(i) AD banks may take their own business decision to enter into export factoring arrangement on non-recourse basis. They should ensure that their client is not over financed. Accordingly, they may determine the working capital requirement of their clients taking into account the value of the invoices purchased for factoring. The invoices purchased should represent genuine trade invoices.

(ii) In case the export financing has not been done by the Export Factor, the Export Factor may pass on the net value to the financing bank/ Institution after realising the export proceeds.

(iii) AD bank, being the Export Factor, should have an arrangement with the Import Factor for credit evaluation & collection of payment.

(iv) Notation should be made on the invoice that importer has to make payment to the Import Factor.

(v) After factoring, the Export Factor may close the export bills and report the same in the Export Data Processing and Monitoring System (EDPMS) of the Reserve Bank of India.

(vi) In case of single factor, not involving Import Factor overseas, the Export Factor may obtain credit evaluation details from the correspondent bank abroad.

(vii) KYC and due diligence on the exporter shall be ensured by the Export Factor.

AD Bank shall establish a separate process for with-recourse and without-recourse export factoring, including verification of the factoring arrangement, assignment/third-party payment documentation, treatment of proceeds, EDPMS closure and monitoring of recourse obligations. The source SOP recognises factoring arrangements and requires the Bank to calibrate documentation to risk.

AD Bank can handle inward proceeds pertaining to with or without recourse factoring where the factoring is done by offshore banks / agencies. The charges / interest for such factoring may be as per commercial arrangement between the exporter and the offshore bank / agency (no interest cap). Customer may provide copy of factoring agreement / message from remitting bank that these are proceeds under with / without recourse factoring done by offshore bank / agency.

For without recourse factoring - AD Bank can close EDPMS upon receipt of factoring proceeds in line with extant standard process. For with recourse cases, the EDPMS shall be closed after receiving a confirmation from the exporter that the payment has been made by the overseas buyer.

13.8. Export of goods through Customs ports

(i) Customs shall certify the value declared and give running serial number on the two copies of Export Declaration Form (EDF), submitted by exporter at Non- Electronic Data Interchange (EDI) port.

(ii) Customs shall retain the original EDF for transmission to the Reserve Bank and return the duplicate copy to the exporter.

(iii) At the time of shipment of goods, exporters shall submit the duplicate copy of the EDF to Customs. After examining the goods, Customs shall certify the quantity in the form and return it to the exporter for submission to AD for negotiation or collection of export bills.

(iv) Within 21 days from the date of export, exporter shall lodge the duplicate copy together with relative shipping documents and an extra copy of the invoice to the AD named in the EDF.

(v) After the documents have been negotiated / sent for collection, the AD shall report the transaction through Export Data Processing and Monitoring System (EDPMS) to the Reserve Bank and retain the documents at their end.

(vi) In case of exports made under deferred credit arrangement or to joint ventures abroad against equity participation or under rupee credit agreement, the number and date of the Reserve Bank approval and/or number and date of the relative RBI circular shall be recorded at the appropriate place on the EDF.

(vii) Where duplicate copy of EDF is misplaced or lost, AD may accept copy of duplicate EDF duly certified by Customs.

13.9. Export of goods/ software done through EDI ports

(i) The shipping bill shall be submitted in duplicate to the authority concerned (Commissioner of Customs or the SEZ, if the export is made through it).

(ii) After verifying and authenticating, the authority concerned shall hand over to the exporter, one copy of the shipping bill marked “Exchange Control (EC) Copy” for being submitted to the AD bank within 21 days from the date of export for collection/negotiation of shipping documents. However, in cases where EC copy of shipping bill is not printed in terms of CBEC`s Circular No. 55/2016-Customs dated November 23, 2016 and data of shipping bill is integrated with EDPMS, requirement of submission of EC copy of shipping bill with the AD bank would not be there.

(iii) The manner of disposal of EC copy of Shipping Bill shall be the same as that for EDF. The duplicate copy of the form together with a copy of invoice etc. shall be retained by ADs and may not be submitted to the Reserve Bank. The question of disposal of EC copy of shipping bill will, however, not arise where EC copy of shipping bill is not printed in terms of CBEC`s Circular No.55/2016-Customs dated November 23, 2016 and data of shipping bill is integrated with EDPMS.

13.10. Export of goods through Post

Postal Authorities shall allow export of goods by post only if the original copy of the EDF has been countersigned by an AD. Therefore, EDF which involve sending goods by post should be first presented by the exporter to an AD for countersignature. The procedure is as under:

(i) AD shall countersign EDF after ensuring that the parcel has been addressed to their branch or correspondent bank in the country of import and return the original copy to the exporter, who shall then submit the EDF to the post office with the parcel.

(ii) The duplicate copy of EDF shall be retained by the AD to whom the exporter shall submit relevant documents together with an extra copy of invoice for negotiation/collection, within the prescribed period of 21 days.

(iii) The concerned overseas branch or correspondent shall be instructed to deliver the parcel to consignee against payment or acceptance of relative bill.

(iv) AD may, however, countersign EDF covering parcels addressed direct to the consignees, provided:

(a) An irrevocable letter of credit for the full value of export has been opened in favor of the exporter and has been advised through the AD concerned.

Or

(b) The full value of the shipment has been received in advance by the exporter through an AD.

Or

(c) The AD is satisfied, on the basis of the standing and track record of the exporter and the arrangements made for realization of the export proceeds.

In such cases, particulars of advance payment/letter of credit / AD`s certification of standing, etc., of the exporter should be furnished on the form under proper authentication.

(v) Any alteration in the name and address of consignee on the EDF form should also be authenticated by AD under its stamp and signature.

13.11. Third party export proceeds

Realization of export proceeds in respect of export of goods / software from third party should be duly declared by the exporter in the appropriate declaration form.

13.12. Random verification

In all the above procedures, AD Category - I bank should ensure, by random check of the relevant duplicate forms by their internal / concurrent auditors, that non-realization or short realization allowed, if any, is within the powers delegated to them or has been duly approved by the Reserve Bank, wherever necessary.

13.13. Receipt of advance against exports

Where an exporter receives advance payment (with or without interest), from a buyer outside India, the exporter shall be under an obligation to ensure that the shipment of goods is made within three years from the date of receipt of advance payment; the rate of interest, if any, payable on the advance payment does not exceed any widely accepted / Alternative reference rate + 100 basis points; and the documents covering the shipment are routed through the AD Category - I bank through whom the advance payment is received.

Provided that in the event of the exporter`s inability to make the shipment, partly or fully, within three years from the date of receipt of advance payment, no remittance towards refund of unutilized portion of advance payment or towards payment of interest, shall be made after the expiry of the said period of three years, without the prior approval of the Reserve Bank.

EDPMS will capture the details of advance remittances received for exports in EDPMS. Henceforth, AD Category - I banks will have to report all the inward remittances including advance as well as old outstanding inward remittances received for export of goods/ software to EDPMS. Further, AD Category - I banks need to report the electronic FIRC to EDPMS wherever such FIRCs are issued against inward remittances.

The quarterly return being submitted for delay in utilization of advances received for export stands discontinued.

13.14. Delay in submission of shipping documents by exporters

In cases where exporters` present documents pertaining to exports after the prescribed period of 21 days from date of export, AD Category - I banks may handle them without prior approval of the Reserve Bank, provided they are satisfied with the reasons for the delay.

13.15. Export Bills Register

AD Category - I banks should maintain Export Bills Register, in physical or electronic form aligned with Export Data Processing and Monitoring System (EDPMS). The bill number should be given to all type of export transactions on a financial year basis (i.e. April to March) and same should be reported in EDPMS.

13.16. Follow-up of overdue bills

(i) AD Category - I banks should closely watch realization of bills and in cases where bills remain outstanding, beyond the due date for payment from the date of export, the matter should be promptly taken up with the concerned exporter. If the exporter fails to arrange for delivery of the proceeds within the stipulated period or seek extension of time beyond the stipulated period, the matter should be reported to the Regional Office concerned of the Reserve Bank stating, where possible, the reason for the delay in realizing the proceeds.

(ii) The duplicate copies of EDF Forms should, continue to be held by AD Category - I banks until the full proceeds are realised, except in case of undrawn balances.

(iii) AD Category - I banks should follow up export outstanding with exporters systematically and vigorously so that action against defaulting exporters does not get delayed. Any laxity in the follow up of realization of export proceeds by AD Category - I banks will be viewed seriously by the Reserve Bank, leading to the invocation of the penal provision under FEMA, 1999.

(iv) AD Category – I bank should send communication through letter/email on a regular basis, preferably at least once in every 30 days; intimating exporters with details of regulatory pending matters in their IEC code with w.r.t. IRM & Shipping Bill and proactively seek submission documents for closure of overdue bills.

(v) With operationalisation of EDPMS on March 01, 2014, realisation of all export transaction for shipping documents after February 28, 2014 should be reported in EDPMS.

13.17. Extension of time

(i) The Reserve Bank of India has permitted the AD Category - I banks to extend the period of realization of export proceeds beyond stipulated period of realization from the date of export, up to a period of six months, at a time, irrespective of the invoice value of the export subject to the following conditions:

a) The export transactions covered by the invoices are not under investigation by Directorate of Enforcement / Central Bureau of Investigation or other investigating agencies,

b) The AD Category - I bank is satisfied that the exporter has not been able to realise export proceeds for reasons beyond his control,

c) The exporter submits a declaration that the export proceeds will be realised during the extended period,

d) While considering extension beyond one year from the date of export, the total outstanding of the exporter does not exceed USD one million or 10 per cent of the average export realizations during the preceding three financial years, whichever is higher.

e) In cases where the exporter has filed suits abroad against the buyer, extension may be granted irrespective of the amount involved / outstanding.

(ii) Cases which are not covered by the above instructions would require prior approval from the concerned Regional Office of the Reserve Bank.

(iii) Reporting should be done in EDPMS.

13.18. “Write-off” of unrealised export bills

An exporter who has not been able to realize the outstanding export dues despite best efforts, may approach the AD Category - I banks, who have handled relevant shipping documents, with appropriate supporting documentary evidence for write off of the unrealized amount under below conditions:

(i)    The amount should remain outstanding for more than a year. Exporters have to produce satisfactory documentary proof evidencing the efforts made in pursuit of its realization.

(ii)   The aggregate amount for write off shall not exceed 10 percent of the total export proceeds realized during the previous calendar year for Status Holder Clients. For non-status holder clients, the limit is capped at 5 percent.

(iii)  The exporter has surrendered export incentives, availed if any, the value proportionate to the write off amount. Exporter have to produce documents as a proof of surrender.

(iv)  The said transactions must not be under any civil or criminal law suit or under investigation by any law enforcement agencies like CBI/ED/DRI etc.

(v) The write-off case may fall under any of the below mentioned categories:

–  The overseas buyer is declared insolvent/bankrupt & a certificate is produced by the official liquidator to this effect stating that export earnings cannot be recovered;

–  The overseas buyer cannot be traced over a reasonably long period of time;

– The goods have been declared unfit for import and/or destroyed/auctioned at the customs port or by any other authority in the country of import;

– The unrealized amount represents the balance outstanding in cases settled with the intervention of foreign chamber of commerce, Indian Embassy or any other similar organization;

– The cost of pursuing legal action would be disproportionate to the amount that remains unrealized, or if exporter even after winning the court, is unable to execute the decree of court in its favour owing to circumstances beyond its control;

– Bills are drawn for the difference in amount between actual value of exports against any provisional charges however the same remains dishonored by the overseas party and there are no prospects of further realization.

13.19. Set-off of export receivables against import payables

AD category - I banks may deal with the following requests received from their Exporter/Importer constituents for allowing set-off of outstanding export receivables against outstanding import payables:

i. Set-off of outstanding export receivables against outstanding import payables from/to the same overseas buyer/supplier.

ii. Set-off of outstanding export receivables against outstanding import payables with their overseas group/associate companies either on net basis or gross basis, through an in-house or outsourced centralized settlement arrangement.

The set-off shall be subject to the following conditions:

a. The arrangement shall be operationalised/supervised through/by one AD Category - I bank only;

b. AD Category - I bank is satisfied with the bonafides of the transactions and ensures that there are no KYC/AML/CFT concerns;

c. The invoices under the transaction are not under investigation by Directorate of Enforcement/Central Bureau of Investigation or any other investigative agency;

d. Import/export of goods/services has been undertaken as per the extant Foreign Trade policy;

e. The export / import transactions with ACU countries are kept outside the arrangement;

f. Set-off of export receivables against goods shall not be allowed against import payables for services and vice versa;

g. AD Category - I bank shall ensure that import payables/export receivables are outstanding at the time of allowing set-off. Further, set-off shall be allowed between the export and import legs taking place during the same calendar year;

h. In case of bilateral settlement, the set-off shall be in respect of same overseas buyer/supplier subject to it being supported by verifiable agreement/mutual consent;

i. In case of settlement within the group/associates companies, the arrangement shall be backed by a written, legally enforceable agreement/contract. AD Category - I bank shall ensure that the terms of agreement are strictly adhered to;

j. Set-off shall not result in tax evasion/avoidance by any of the entities involved in such arrangement;

k. Third party guidelines shall be adhered to by the concerned entities, wherever applicable;

l. AD Category - I bank shall ensure compliance with all the regulatory requirement relating to the transactions;

m. AD Category - I bank may seek Auditors/CA certificate wherever felt necessary;

n. Each of the export and import transaction shall be reported separately (gross basis) in FETERS/EDPMS/IDPMS, as applicable;

o. AD Category - I bank to settle the transaction in E/IDPMS by utilizing the ‘set-off indicator` and mentioning the details of shipping bills/bill of entry/invoice details being settled in the remark column (including details of entities involved).

13.20. Netting-off of export receivables against import payments – Units in Special Economic Zones (SEZs)

AD Category - I banks may allow requests received from exporters for “netting off” of export receivables against import payments for units located in Special Economic Zones subject to the following:

(i) The netting off of export receivables against import payments is in respect of the same Indian entity and the overseas buyer / supplier (bilateral netting) and the netting may be done as on the date of balance sheet of the unit in SEZ.

(ii) The details of export of goods are documented in EDF (O) forms / DTR as the case may be while details of import of goods / services are recorded through A1 / A2 form as the case may be. The relative EDF will be treated as complete by the designated AD Category - I banks only after the entire proceeds are adjusted / received.

(iii) Both the transactions of sale and purchase in R- Returns under FETERS are reported separately.

(iv) The export / import transactions with ACU countries are kept outside the arrangement.

(v) All the relevant documents are submitted to the concerned AD Category - I banks who should comply with all the regulatory requirements relating to the transactions.

13.21. Exporters` Caution List

1) An exporter would be caution-listed by the Reserve Bank based on the recommendations of the AD bank concerned, depending upon the exporters track record with the AD bank and investigative agencies.

The AD bank would make recommendations in this regard to the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank in case the exporter has come to the adverse notice of the Enforcement Directorate(ED) / Central Bureau of Investigation (CBI) / Directorate of Revenue Intelligence (DRI) /any such other law enforcement agency and/or the exporter is not traceable and/or is not making sincere efforts to realise the export proceeds.

The AD bank would also make recommendations to the Regional Office of the Reserve Bank for de-caution-listing an exporter as per the laid down procedure.

2) AD Category - I banks should follow the procedure mentioned below while handling shipping documents in respect of caution listed exporters:

(a) They will intimate the exporters about their caution listing, giving the details of outstanding shipping bills. When caution listed exporters submit shipping documents for negotiation / purchase/ discount/ collection, etc. the AD Category - I bank may accept the documents subject to following conditions:

(i) The exporters concerned should produce evidence of having received advance payment or an irrevocable letter of credit in their favour covering the full value of the proposed exports;

(ii) In case of usance bills, the relative letter of credit should cover full export value and also permit such drawings. Besides, the usance bills should also mature within prescribed realisation period reckoned from date of shipment.

(iii) Except under the above mentioned conditions given in 2 (a) (i) and (ii), AD banks should not handle the shipping documents of caution listed exporters.

(b) AD Category - I banks should obtain prior approval of the Reserve Bank for issuing guarantees for caution-listed exporters.

13.22. Issuance of Electronic Bank Realisation Certificate (eBRC)

AD Category-I banks are required to update the EDPMS with data of export proceeds on “as and when realised basis” Additionally, with effect from February 01, 2024, they are required to upload Inward Remittance Message(IRM) details in DGFT portal for exporters to generate Electronic Bank Realisation  (eBRC) at their end.

13.23. Export Data Processing and Monitoring System (EDPMS) - reconciliation of export entries – Special Procedure

Notwithstanding anything contained in this Internal Regulatory Document, AD banks shall adopt the following procedure while closing entries (including outstanding entries) in EDPMS of value equivalent to ₹10 lakh per entry/bill or less:

a. Such entries shall be reconciled and closed based on a declaration provided by the concerned exporter that the amount has been realised.

b. Any reduction in declared value or invoice value of the shipping bills shall also be accepted, based on the declaration by the concerned exporter.

c. The declarations referred above may also be received on a quarterly basis from the exporters in a consolidated manner (by combining several bills in one declaration) for bulk reconciliation and closing of EDPMS entries.

ii. Accordingly, AD banks shall also review the charges levied for handling these small-value export transactions, keeping in view the revised procedure/relaxations mentioned above and ensure that the same are commensurate with the services rendered. AD banks shall not levy any penal charges (penalty) for delays in adherence to any regulatory guidelines.

14. International trade settlement in INR

To promote growth in cross-border trade and support increasing global interest in conducting trade in Indian Rupees (INR), an additional framework for invoicing, payment and settlement of exports and imports in INR has been operationalized effective RBI/2025-2026/71 A.P.(DIR series) circular no.08.

Framework.

SBERBank may facilitate export/import transactions in INR through the RBI-permitted Rupee Trade Settlement Mechanism.

Key provisions:

·    The settlement of cross-border trade transactions through SRVA is an additional arrangement for invoicing, payment and settlement of exports and imports in INR. Additionally, all permissible capital and current account transactions under FEMA may be settled through the SRVA. Further, AD banks maintaining SRVA are also permitted to open additional current account for exporter/importer, exclusively for settlement of export/import transactions.

·    SRVA may be funded by way of inward remittances or transfer from other repatriable INR accounts.

·  Documentation and reporting of cross-border transactions through SRVA shall be done in terms of the extant guidelines under FEMA 1999, issued from time to time.

·   Persons Resident Outside India (PROIs) may settle bona fide transactions with other PROIs using balances held in repatriable INR accounts including Special Rupee Vostro Accounts (SRVAs) & Special Non-Resident Rupee Accounts (SNRR).

·    Exports and imports under this mechanism shall be invoiced, paid, and settled in INR only.

·    The exchange rate between INR and the partner country’s currency shall be market-determined.

·   Import payments shall be made by Indian importers in INR and credited to the Special Rupee Vostro Account of the overseas correspondent bank.

·    Export proceeds shall be received by Indian exporters in INR from the designated Special Rupee Vostro Account.

·    All transactions shall comply with existing documentation, reporting, and FEMA requirements.

·   Letters of Credit and other trade documents may be established on a bilateral basis between the participating banks, subject to UCPDC and applicable Incoterms. Messaging and communication protocols shall be mutually agreed, ensuring secure, efficient and authenticated exchange of information.

·   Advance against exports in INR may be allowed, subject to verification with the correspondent bank and availability of funds. SBERBank shall ensure that available balances in Special INR Vostro Account are first utilized or settlement of bills pending for export realization.

·   Set-off of export receivables against import payables with the same overseas counterparty is permitted as per FEMA guidelines. SBER Bank shall ensure appropriate due diligence and gross reporting of transactions in EDPMS/IDPMS, as applicable.

·  Bank Guarantees for trades under this mechanism may be issued in line with FEMA and SBER Bank’s Guarantee policy.

· Surplus INR balances in Special Rupee Vostro Accounts may be used for permissible trade, investment, and other FEMA-approved transactions.

·   SBERBank may open or close Special Rupee Vostro Accounts for its overseas branches or correspondent banks without prior approval from RBI.

Export/import transactions in INR through the RBI-permitted Rupee Trade Settlement Mechanism shall adhere to all applicable KYC/AML/CFT norms. Enhanced due diligence shall be applied before onboarding any foreign correspondent bank under this mechanism.

Permissible Debits in INR Vostro Accounts:

·     Receipts from exports of goods and services.

·     Receipt of Advance Payment against exports.

·     Permissible capital and current account transactions in accordance with mutual agreement.

·     Payments for projects and investments.

·    Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision.

Permissible Credits in Special INR Vostro Accounts:

·     Funding in Special Vostro accounts by purchase of INR by the Correspondent Bank from SBER Bank.

·     Payment against the invoices for the supply of goods or services from the overseas seller/supplier.

Process Deviation / Exception: any deviation from this procedure may be approved by Compliance and AML / Legal.

Appendix 1

List of documents to be collected basis applicable purpose code

Appendix 2

List of abbreviations

AD: Authorized Dealer

AML / KYC: Anti-Money Laundering / Know Your Customer

AWB: Airway Bill

B/L: Bill of Lading

BOE: Bill of Entry

CB: Collegial Body

CBEC: Central Board of Excise and Customs

Compliance: Compliance and AML Department

CRM: Corporate and Financial Institutions Department

CSOD: Client Support Operations Department

EEFC: Exchange Earners` Foreign Currency Account

EDF: Export Declaration Form

EDI: Electronic Data Interchange

FIRC: Foreign Inward Remittance Certificate

FOC: Free of Cost

GJEPC: Gem and Jewellery Export Promotion Council

IRD: Internal Regulatory Document

IRM: Inward Remittance Message

PI: Proforma Invoice

PO: Purchase Order

ORM: Outward Remittance Message

RBI: Reserve Bank of India

TBDD: Transaction Business Development Division