RBI notifies change in use of export proceeds received in foreign currency accounts at IFSC

Exporters can keep the foreign exchange proceeds in a Foreign Currency Account at the International Financial Services Centre (IFSC) for a period of three months, according to a notification by the Reserve Bank of India (RBI), amending the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015, to facilitate the change. However, for accounts opened in any other jurisdiction, the time limit to use the proceeds remains one month. The notification read that the funds in this account may be utilised by the exporter for paying for its imports into India or repatriated into India within a period not exceeding three months in case of accounts maintained with banks in an International Financial Services Centre, or next month for all other jurisdictions. The time period will be counted from the date of receipt of the funds after adjusting for forward commitments, as per a report.

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