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| DGFT amends FTP Paras 2.52 and 2.53, changing the framework for export contract currency and rupee realisation. |
DGFT Amends FTP Paras 2.52 and 2.53 — New Rules for Export Contract Currency & Rupee Trade
📌 Source: DGFT Notification No. 30/2026-27 | Date: 20 August 2026
DGFT has amended Para 2.52 (Denomination of Export Contracts) and Para 2.53 (Applicability of FTP Schemes for Export Realisations in Indian Rupees) of the Foreign Trade Policy 2023, with the changes taking effect immediately. The changes simplify how export contracts can be denominated and clarify the treatment of rupee-settled exports under the FTP framework, in line with RBI's foreign exchange regulations.
📌 Why this matters
✅ Key Highlight: DGFT has aligned FTP provisions on export contract currency and rupee realisation with RBI's Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023. The amendment clarifies the treatment of INR-settled exports under the FTP framework, with eligibility for specific FTP benefits remaining subject to the applicable scheme conditions and regulatory requirements.
Para 2.52 — What Changed, Before vs Now
| Before (Existing) | Now (Revised) |
|---|---|
| All export contracts and invoices had to be denominated in freely convertible currency or Indian Rupees, with proceeds realized in freely convertible currency. Rupee realization was allowed only under specific conditions (via Vostro account routing, ACU Dollar settlement, or EXIM Bank/GoI Lines of Credit). | Export contracts and invoices (other than with ACU member countries) can be denominated in any foreign currency or Indian Rupees, with proceeds realized in any foreign currency or INR — simplified from the earlier "freely convertible currency" requirement. |
| Contracts settled through the ACU had to be denominated in ACU Dollars, though settlement could happen in ACU Dollar or ACU Euro per RBI notifications. | Export contracts with ACU member countries (other than Nepal and Bhutan) shall be denominated in a currency determined by the ACU, but transactions may also be denominated and settled as per RBI directions issued from time to time. |
| No separate rule specifically for Nepal and Bhutan — they fell under general ACU provisions with exceptions noted case by case. | Export contracts with Nepal and Bhutan shall be denominated and settled in Indian Rupees, or as per RBI directions. EXIM Bank/Government of India Lines of Credit may also be denominated in Indian Rupees. |
Para 2.53 — What Changed, Before vs Now
| Before (Existing) | Now (Revised) |
|---|---|
| (i) Export proceeds realized in Indian Rupees against exports to Iran were permitted to avail export benefits/incentives at par with proceeds realized in freely convertible currency, subject to Para 2.19 compliance. (ii) Export proceeds realized in Indian Rupees as per Para 2.52(d)(ii) were permitted to avail export benefits/incentives under the FTP. |
Exports to any country other than Nepal and Bhutan, for which export proceeds are realized in Indian Rupees through banking channels — by credit to Indian Rupee accounts of persons resident outside India, opened as per FEMA (Deposit) Regulations — shall be eligible for export benefits/incentives and fulfilment of Export Obligations under the FTP, at par with exports realized in any foreign currency. For exports to Iran, this provision applies subject to compliance with Para 2.19 of the FTP. |
For clarity, inclusion of INR-denominated or INR-realised exports under the revised provision does not by itself create an automatic entitlement to every FTP benefit or incentive. The relevant scheme-specific eligibility conditions continue to apply.
In plain terms, the earlier provision was narrower and specifically covered INR realisations for exports to Iran. The revised provision extends FTP benefit eligibility to qualifying exports realised in INR through the permitted banking channels, subject to the conditions in the notification. Nepal and Bhutan continue to have their separate rupee-settlement provisions.
Impact on Exporters
If you invoice or settle an export transaction in Indian Rupees, this amendment may affect how you claim benefits under the FTP. This is particularly relevant where the buyer prefers INR settlement or the trade is carried out under an INR settlement arrangement.
Who this affects most:
Exporters currently settling in INR through Special Vostro accounts or Rupee accounts of non-resident persons, especially those trading with ACU member countries, Nepal, Bhutan, or under EXIM Bank/Government of India Lines of Credit
The amendment aligns the FTP treatment with the applicable FEMA framework. Whether an exporter qualifies for a particular FTP benefit still depends on the relevant scheme conditions and other applicable requirements under the FTP.
Why DGFT Made the Change
DGFT says the amendment aligns the FTP provisions on export contract denomination and rupee realisation with RBI's Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023. For exporters, the practical change is broader eligibility for FTP benefits where export proceeds are realised in INR through the permitted banking channels, subject to the conditions of the FTP. Nepal and Bhutan remain covered by their specific rupee-settlement provisions.
What Exporters Should Check
Contract currency : If your export proceeds are realized in Indian Rupees, check which category you fall under .
Settlement route: general foreign trade, ACU member country, Nepal/Bhutan, or Iran .
FTP benefit eligibility since each now has a distinct denomination and settlement rule under the revised Para 2.52 and 2.53.
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Disclaimer: All information in this post is sourced from the official DGFT published 20 August 2026,Government of India. This post is for informational and awareness purposes only.