Opening of FCNR(B) Deposits in India: Rules, Procedures, and Conditions
Foreign Currency Non-Resident [Bank] deposits, commonly called FCNR(B) deposits, are term deposits maintained in designated foreign currencies with Indian banks by eligible non-residents, offering full repatriability of principal and interest and insulation from INR exchange risk during the tenor. These deposits can generally be opened for tenors from 1 to 5 years, with interest payment/compounding…
Read article Closure of FCNR(B) Deposits in India: Rules, Procedures, and Conditions
Closing a Foreign Currency Non-Resident [Bank] [FCNR(B)] deposit in India is governed by RBI’s FCNR(B) Scheme and bank-specific policies, with distinct rules for premature closure, closure at maturity, repatriation, and treatment upon return to India for permanent settlement. The key principles are: premature closure is permitted with penalties and, if closed before one year, no…
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Credit Guarantee Scheme for Exporters (CGSE): Policy Overview, for the Banking Sector
The Union Cabinet has approved the Credit Guarantee Scheme for Exporters (CGSE), authorising the National Credit Guarantee Trustee Company Limited (NCGTC) to extend 100% credit guarantee coverage to Member Lending Institutions (MLIs) for additional credit facilities of up to ₹20,000 crore to eligible exporters, including those in the MSME segment. The scheme is expected to…
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FEMA Amendments for Exporters: Extended Realisation and Shipment Timelines (2025)
India’s central bank has amended the export regulations under FEMA to give exporters more time to realise proceeds and fulfil shipment commitments amid global trade disruptions that have delayed payments and logistics, thereby easing short‑term cash‑flow pressures on firms engaged in goods, software, and services exports. The changes are designed to mitigate the impact of…
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RBI’s Trade Relief Measures, 2025: Moratorium Window, Working Capital Easing, and Extended Export Credit Tenors
*( Ref: RBI Circular No. RBI/2025-26/96/DOR.STR.REC.60/21.04.048/2025-26 dated November 14, 2025) The Reserve Bank of India has issued the RBI (Trade Relief Measures) Directions, 2025 to ease debt-servicing pressures for export-oriented borrowers affected by global trade disruptions. The framework, which applies with immediate effect, enables regulated entities to offer (i) a time-bound moratorium or deferment on…
RBI’s New Trade Relief Measures 2025: What Exporters, Importers, and Banks Need to Know
The Reserve Bank of India has issued the Reserve Bank of India (Trade Relief Measures) Directions, 2025, through a notification dated November 14, 2025. These measures are designed to ease day-to-day challenges in cross-border trade and simplify foreign exchange (FX) processes for exporters, importers, merchanting traders, and Authorized Dealer (AD) banks. They also build on…
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