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RBI simplifies write-off of unrealized export bills

Current · Source: Reserve Bank of India · RBI/2012-13/435 · issued 12 Mar 2013 · ~2 min read

Quick answerRBI has raised self write-off limits for exporters to 5% (non-status holders) and 10% (status holders) of previous year's export realizations, and AD bank write-off limit to 10% of previous year's export realizations. Conditions include outstanding over one year, documentary evidence, and surrender of export incentives.

The rule, in the simplest words

Exporters who are not 'status holders' (special exporters) can now write off (remove from their books) up to 5% of the money they got from exports last year, without asking the bank.
Exporters who are 'status holders' can write off up to 10% of last year's export money themselves.
Banks (called AD banks) can now write off up to 10% of last year's export money for their customers, without needing RBI's special permission.
To write off, the unpaid bill must be more than one year old, the exporter must show proof they tried to get the money, and they must give back any export rewards (incentives) they got for that shipment.
Exporters must give a certificate from a Chartered Accountant (a special number-checker) showing how much they exported and wrote off that year.

How it plays out — a real example

A forex & trade-finance officer in Mumbai sees a small exporter's request to write off an unpaid export bill from 18 months ago. The officer checks that the exporter's total export money last year was ₹1 crore, so the 5% self-write-off limit means the exporter can write off up to ₹5 lakh without bank approval. The officer confirms the exporter has a letter from the buyer saying they went bankrupt and a Chartered Accountant's certificate, then allows the write-off, making the exporter's books clean.

What changed

RBI increased the self write-off limit for exporters (other than status holders) from earlier levels to 5% of total export proceeds realized in the previous calendar year. For status holder exporters, the self write-off limit was raised to 10%. Authorized Dealer banks can now write off up to 10% of the previous year's export realizations.

What it means for you

Banks can now process higher write-off requests without seeking RBI approval, reducing compliance burden. Exporters get greater flexibility to clean up their books for unrealized export bills, especially for small amounts. However, banks must ensure strict adherence to conditions like surrender of proportionate export incentives and documentary evidence of recovery efforts.

What you must do

Update internal write-off policies to reflect new limits: 5% self write-off for non-status holders, 10% for status holders, and 10% for AD bank write-offs, based on previous calendar year export realizations.
Verify that write-off requests meet conditions: outstanding over one year, documentary evidence of recovery efforts, and falling under specified categories (e.g., buyer insolvency, untraceable buyer, etc.).
Obtain and retain documents evidencing surrender of proportionate export incentives before permitting write-off, as per earlier circular.
For self write-offs, ensure exporters submit a Chartered Accountant's certificate showing export realization and write-off availed during the year.
Forward a statement in form EBW to the Regional Office of RBI under whose jurisdiction the bank is functioning, indicating details of write-offs allowed.

Who it affects

All Category-I Authorized Dealer banks, Exporters (status holder and non-status holder), Export-oriented businesses dealing with unrealized export bills

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 16:10 IST
partially_modified_by — RBI Eases Export Rules: Higher Write-off Limits & No Cap on Direct Dispatch

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new self write-off limit for status holder exporters?

Status holder exporters can now self write-off up to 10% of their total export proceeds realized during the previous calendar year, cumulatively available in a year.

What conditions must be met for a write-off under this circular?

The amount must be outstanding for over one year, the exporter must provide documentary evidence of recovery efforts, the case must fall under specified categories (e.g., buyer insolvency, untraceable buyer), and proportionate export incentives must be surrendered.

Do banks need to report these write-offs to RBI?

Yes, AD banks must forward a statement in form EBW to the Regional Office of RBI under whose jurisdiction they are functioning, indicating details of write-offs allowed under this circular.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Partially modified by RBI Eases Export Rules: Higher Write-off Limits & No Cap on Direct Dispatch

RBI’s words: “A.P. (DIR. Series) Circular No. 88 dated March 12, 2013 on “write-off” of unrealized export bills”

📜 Read the original circular — full text as issued by RBI

RBI/2012-13/435

 A.P. (DIR Series) Circular No. 88

 March 12, 2013

 To

 All Category - I Authorized Dealer Banks

 Madam / Sir,

 “Write-off” of unrealized export bills –

 Export of Goods and Services – Simplification of procedure 

 Attention of Authorized Dealer Category – I (AD Category –I) banks is invited to A.P. (DIR. Series) Circular No. 12 , 30 , 61 , 40 , 33 and 03 dated September 09, 2000, April 04, 2001, December 14, 2002, December 05, 2003, February 28, 2007 and July 22, 2010 respectively in terms of which the exporters were given limited powers of write-off and also AD Category – I banks have been permitted to accede to the requests for "write-off" made by the exporters, subject to the conditions, inter alia, that the exporter had to surrender proportionate export incentives, if availed of, in respect of the relative shipments.

 2. With a view to further simplifying and liberalizing the procedure and for providing greater flexibility to all exporters as well as the Authorized Dealer banks, the earlier instructions have been reviewed. It has now been decided to effect, subject to the stipulations regarding surrender of incentives prior to”write-off” adduced in the A.P. (DIR Series) Circular No. 03 dated 22 July 2010 , the following liberalization in the limits of “write-offs” of unrealized export bills:

 Self “write-off” by an exporter

 (Other than Status Holder Exporter) ----------------------------------------------------- 5%*

 Self “write-off” by Status Holder Exporters ------------------------------------------ 10%*

 ‘Write-off” by Authorized Dealer bank ------------------------------------------------ 10%*

 *of the total export proceeds realized during the previous calendar year.

 3. The above limits will be related to total export proceeds realized during the previous calendar year and will be cumulatively available in a year.

 4. The above “write-off” will be subject to the following conditions:

 (a) The relevant amount has remained outstanding for more than one year;

 (b) Satisfactory documentary evidence is furnished in support of the exporter having made all efforts to realize the dues;

 (c) The case falls under any of the undernoted categories :

 (i)

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/435 · issued 12 Mar 2013. The plain-English explanation above is BankPulse’s own independent summary.

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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Category-I Authorized Dealer banks, Exporters (status holder and non-status holder), Export-oriented businesses dealing with unrealized export bills), your first concrete step on “RBI simplifies write-off of unrealized export bills” is: “Update internal write-off policies to reflect new limits: 5% self write-off for non-status holders, 10% for status holders, and 10% for AD bank write-offs, based on previous calendar year export realizations.” (RBI issued this 12 Mar 2013).

Circular: RBI/2012-13/435 -- RBI simplifies write-off of unrealized export bills
Issued: 12 Mar 2013
Action required: Update internal write-off policies to reflect new limits: 5% self write-off for non-status holders, 10% for status holders, and 10% for AD bank write-offs, based on previous calendar year export realizations.
Action required: Verify that write-off requests meet conditions: outstanding over one year, documentary evidence of recovery efforts, and falling under specified categories (e.g., buyer insolvency, untraceable buyer, etc.).
Action required: Obtain and retain documents evidencing surrender of proportionate export incentives before permitting write-off, as per earlier circular.
Action required: For self write-offs, ensure exporters submit a Chartered Accountant's certificate showing export realization and write-off availed during the year.
Action required: Forward a statement in form EBW to the Regional Office of RBI under whose jurisdiction the bank is functioning, indicating details of write-offs allowed.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7886&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.