Module: | MODULE A: INTERNATIONAL BANKING
Q114: Consider the following statements regarding the realization of export proceeds under the Foreign Exchange Management Act regulations of 2026:
1. The standard period for the realization and repatriation of the full export value of goods or software has been extended to 15 months from the date of shipment or invoice.
2. If the export transaction is invoiced and settled in Indian Rupees, the exporter is granted an extended realization period of 18 months.
3. For goods exported to a warehouse established outside India, the 15 month realization period is calculated strictly from the date of the initial shipment from India.
Which of the above statements is or are correct?
2. If the export transaction is invoiced and settled in Indian Rupees, the exporter is granted an extended realization period of 18 months.
3. For goods exported to a warehouse established outside India, the 15 month realization period is calculated strictly from the date of the initial shipment from India.
Which of the above statements is or are correct?
✅ Correct Answer: B
🎯 Quick Answer:
Statements 1 and 2 are correct, while Statement 3 is incorrect.Structural Breakdown: Under the unified 2026 regulations, the standard timeline for bringing this money back is capped at 15 months.
However, if the trade is settled entirely in Indian Rupees using Special Rupee Vostro Accounts, the limit is generously extended to 18 months.
Historical Context: Prior to the 2026 updates, the standard realization period was only 9 months.
The central bank unified and extended these timelines to promote the ease of doing business and provide a level playing field for all categories of exporters facing global supply chain delays.
Causal Reasoning: Statement 3 is incorrect because the 2026 regulations explicitly state that for goods shipped to an overseas warehouse, the 15 month period is counted from the date of sale from the warehouse, not the date of the initial shipment from India.
This provides necessary flexibility for inventory-based overseas sales models.