RBI allows rupee lending to Bhutan, Nepal, Sri Lanka for trade. Extends repatriation period for foreign currency accounts. Details here.
The RBI said amendments have been made to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 and Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015, as part of continuous efforts towards facilitating external trade and payments’.
“AD (authorised dealer) banks in India and their overseas branches have been permitted to lend in Indian Rupees to persons resident in Bhutan, Nepal, and Sri Lanka, including banks in these jurisdictions, to facilitate cross-border trade transactions,” it said.
In January 2025, the RBI permitted Indian exporters to open foreign currency accounts with a bank outside India for the realisation of export proceeds. Unutilised balances in these accounts are required to be repatriated by the end of month next to the date of realisation.
“It has now been decided that the period for repatriation shall be extended up to three months, in case of foreign currency accounts maintained with a bank in the IFSC in India,” RBI said.
An announcement in this regard was made by the central bank on October 1 when it unveiled the bi-monthly monetary policy.
