The Reserve Bank of India has introduced key updates that change how Indian exporters handle payments and documentation in global trade. These changes extend the export realization period and provide more time for exporters to bring their export proceeds back to India. Exporters also get an extended window to complete shipments when they receive advance payments from overseas buyers.
The export realization period is the time within which exporters must bring export proceeds back into India. The RBI has revised this under the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025. The extension from 9 months to 15 months gives exporters more time to collect payments from overseas buyers. This update supports foreign exchange management and makes international trade compliance smoother for Indian businesses.
Exporters face delays due to long shipping routes, buyer-side approvals, foreign banking processes, or documentation checks. The earlier 9-month window created pressure in many such cases.
The RBI extended the export realization period to:
Support exporters facing delayed international payments
Reduce compliance challenges under FEMA
Improve India’s ease of doing business
Align export timelines with global trade standards
Help exporters accept long-term and high-value export contracts
The change is a direct response to the challenges faced by a wide range of exporters in global markets.
RBI Extends the Time Period for Realization of Full Export from 9 to 15 Months
Notification No. F.No. FEMA 23(R)/(7)/2025-RB; Dated: 13.11.2025
Earlier Provision: Exporters were required to realize and repatriate the export value of goods, software, or services within 9 months from the date of export.
Revised Provision: The RBI has now extended this period to 15 months, offering exporters additional time for recovery of payments from overseas buyers.
Applicability: The revised 15-month period applies to:
Special Economic Zone units
Status holder exporters
Export Oriented Units
Units in Software Technology Parks
Units in Electronics Hardware Technology Parks
Units in Bio-Technology Parks
This ensures uniformity across all export categories and promotes ease of doing business.
Key Amendment 2 – Extended Time for Shipment Against Advance Payments
Earlier Provision: Exporters receiving an advance payment had to ship the goods within one year of receiving the advance.
Revised Provision: Exporters now get three years from the date of receiving advance payment to complete the shipment, provided the advance is declared in export documentation.
This change helps exporters handle long-term export contracts, large machinery orders, and custom-built products.
The updated export realization period and the extended advance shipment window offer practical benefits:
More flexibility: Exporters can manage unpredictable delays without breaching FEMA rules.
Better cash flow: Extended timelines allow smoother financial planning and invoicing cycles.
Improved export competitiveness: Indian exporters can negotiate better terms with global buyers.
Reduced compliance pressure: Extended periods reduce the risk of late realization violations.
Support for long-term contracts: Industries with longer production cycles can now comply easily.
These changes align with global trade practices and improve India’s position in international markets.
We track export realization timelines for your business.
We guide you on FEMA documentation and reporting.
We help declare advance payments correctly during export filings.
We advise on contract structuring for longer export timelines.
We assist SEZ, EOU, STP, and EHTP units with updated compliance.
We help prepare paperwork for audits and RBI submissions.
Our support ensures exporters stay compliant without missing important deadlines.
The RBI’s extension of the export realization period from 9 to 15 months and the expansion of the advance shipment window to 3 years provide much-needed relief to exporters. These amendments simplify FEMA compliance and help exporters manage global trade challenges more effectively. With these changes, Indian exporters can operate with better confidence and clarity in international markets.
RBI Extends Export Realization Period: What Exporters Should Know
FEMA Compliance Requirements Every Exporter Must Follow
RBI Guidelines on Advance Payments for Export Shipments
Latest FEMA Updates Affecting Import–Export Businesses in India
The export realisation period is the time an exporter gets to bring export money into India. RBI now allows 15 months instead of 9 months. This applies to goods, services, and software exports.
Exporters face slow payments due to overseas banking delays, long shipping routes, or contract approvals. The earlier 9-month limit was challenging, so the extension gives more time without FEMA violations.
Yes. The 15-month period applies to regular exporters, SEZ units, EOUs, status holders, and units under STP, EHTP, and BTP schemes.
They must seek approval from RBI or the authorized dealer bank. Without approval, it may be treated as a FEMA compliance issue, so tracking deadlines is important.
The update helps exporters of machinery, engineering goods, and project-based exports that require longer production and payment cycles.
Earlier, exporters had to ship goods within one year of receiving advance payment. RBI now allows up to three years to complete the shipment, provided the advance is declared in export documents.
Some export orders need custom manufacturing or long production cycles. The three-year window helps exporters meet shipment timelines without compliance issues.
Yes. These updates are made under the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015, in the 2025 amendment (Notification No. F.No. FEMA 23(R)/(7)/2025-RB).
It is advisable to update contracts to include the 15-month realisation period and three-year advance shipment window to avoid disputes and ensure compliance.
Exporters should track payments, record advances accurately, and monitor FEMA timelines. Proper documentation and adherence to bank reporting rules are essential.
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