Foreign Remittance

[Kaustubh Karandikar]

What is the maximum time limit for outward foreign remittance against import as per RBI guidelines?

AI Summary

RBI Guidelines: Outward Foreign Remittance for Imports Extended to 12 Months Due to COVID-19 Disruptions A forum participant inquired about the Reserve Bank of India's (RBI) guidelines on the maximum time limit for outward foreign remittance against imports. Responses highlighted that, under normal circumstances, remittances should be completed within six months from the shipment date, with exceptions for performance guarantees. Deferred payment arrangements can extend up to five years. Due to COVID-19 disruptions, the RBI extended this period to twelve months for shipments made by July 31, 2020. The extension is contingent on existing contract terms and may require renegotiation with foreign suppliers. Participants expressed gratitude for the shared information.