Overdue Export Credit: Repay from Rupee Funds Now Allowed
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/477 · issued 18 Apr 2011 · ~2 min read
Quick answerRBI now allows exporters with overdue post-shipment rupee export credit to repay it using their own rupee resources, not just export proceeds or EEFC balances. This cuts interest cost on overdue bills, but the export obligation remains until the bill is realised.
What changed
Previously, post-shipment rupee export credit could only be liquidated by export bill proceeds, EEFC balances, or unfinanced collection bills. Now, exporters with overdue export bills may also extinguish this credit from their rupee resources, reducing their interest burden.
What it means for you
Banks can now accept rupee repayments for overdue post-shipment export credit, lowering exporters' interest costs. However, the GR form stays outstanding and the amount appears in the XOS statement, meaning the exporter's realisation liability continues. Banks must track this carefully to ensure eventual export proceeds come in.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your internal policies to allow rupee repayment of overdue post-shipment export credit as per this circular.
Ensure that when such repayments are accepted, the GR form remains outstanding and the amount is reported in the XOS statement.
Monitor the exporter's realisation liability until the export bill is actually realised, even after rupee repayment.
Communicate this new option to your export credit customers to help them reduce interest costs.
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Can an exporter repay overdue post-shipment credit from any rupee account?
Yes, as per this circular, exporters with overdue export bills may extinguish their overdue post-shipment rupee export credit from their rupee resources, subject to mutual agreement with the bank.
Does repaying from rupee resources clear the export obligation?
No. The GR form remains outstanding and the amount is shown in the XOS statement. The exporter's liability for realisation continues until the export bill is actually realised.
What was the earlier rule for liquidating post-shipment credit?
Earlier, post-shipment credit could only be liquidated by proceeds of export bills, EEFC balances, or proceeds from unfinanced collection bills. Rupee repayment was not an option for overdue bills.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1534: DBOD.Dir.BC.No.85/04.02.001/2010-11 — "Liquidation of Post-Shipment Rupee Export Credit" dated April 18, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/477
DBOD.Dir.BC.No. 85 /04.02.001/2010-11
April 18, 2011
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir/ Madam,
Liquidation of Post-Shipment Rupee Export Credit
Please refer to paragraph 2.3 of our Master Circular on Rupee / Foreign Currency Export Credit and Customer Service to Exporters DBOD.No.Dir.(Exp). BC.06/ 04.02.002 / 2010-11 dated July 01, 2010 wherein banks were advised that Post-shipment credit is to be liquidated by the proceeds of export bills received from abroad in respect of goods exported/ services rendered. Further, subject to mutual agreement between the exporter and the banker it can also be repaid/prepaid out of balances in Exchange Earners Foreign Currency (EEFC) Account as also from proceeds of any other unfinanced (collection) bills.
2.It has now been decided that in order to reduce the cost to exporters (i.e. interest cost on overdue export bills), exporters with overdue export bills may also extinguish their overdue post shipment rupee export credit from their rupee resources. However, the corresponding GR form will remain outstanding and the amount will be shown outstanding in XOS statement. The exporter’s liability for realisation would continue till the export bill is realised.
Yours faithfully,
(P. R. Ravi Mohan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/477 · issued 18 Apr 2011. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6349&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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