India has eased its export payment regulations in rupees, aiming to expand the currency’s use in global trade and simplify cross-border settlements, as part of a wider strategy to reduce trade friction amidst strained global conditions.
India has relaxed its rules on export payments in rupees, a move that officials say is meant to widen the currency’s use in global trade. According to Investing.com, the change allows exporters to invoice and settle contracts in rupees or foreign currencies for buyers in most countries, instead of requiring export proceeds to come back only in freely convertible currencies. The adjustment does not apply to Nepal and Bhutan.
The latest step builds on a series of moves by New Delhi and the Reserve Bank of India to make cross-border rupee settlement easier. In 2022, the government allowed rupee settlement for some export promotion schemes, while the central bank expanded the framework for special rupee vostro accounts, which let foreign banks hold rupees for trade with India, according to reporting by the Economic Times and IndiaLaw.in. IndiaLaw.in said that in 2025 the RBI further eased the process by letting some authorised banks open these accounts without first seeking central bank approval.
The broader regulatory picture has also been shifting. LiveMint reported that in January 2026 the RBI revamped older foreign-exchange rules, putting exports and imports of goods and services under a single framework to simplify compliance and improve digital monitoring. The new regulations were notified in January and are due to take effect in October 2026, following a lengthy consultation process.
The rupee push comes after a string of other trade-related relaxations. Business Standard reported in October 2025 that the RBI extended the time allowed for certain merchanting trade payments, while India Tribune said in November 2025 that it lengthened deadlines for export proceeds to be realised and goods to be shipped after advance payments. Taken together, the measures show how India is trying to make rupee-denominated trade easier while reducing friction for exporters under strained global trading conditions.
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