Quick answerRBI allows importers to make advance remittance for shipping vessel import up to USD 50 million without bank guarantee.
What changed
The RBI has relaxed rules for importing shipping vessels, allowing advance remittance without a bank guarantee or standby Letter of Credit up to USD 50 million. This change aims to enhance ease of doing business. The relaxation is subject to conditions mentioned in the Master Direction – Import of Goods and Services.
What it means for you
This relaxation will make it easier for importers to bring in shipping vessels, potentially increasing trade and commerce. It may also reduce the burden on banks, as they will not need to issue guarantees or letters of credit for these transactions. However, importers must still comply with applicable conditions and regulations.
The rule, in the simplest words
Importers can now send money in advance (advance remittance) to buy a shipping vessel (a big ship for carrying goods) without needing a bank guarantee (a promise from the bank to pay if the importer fails) or a standby Letter of Credit (a backup payment promise from the bank), as long as the amount is up to USD 50 million.
This rule applies only to shipping vessels, not other goods, and importers must still follow all other rules in the RBI's Master Direction for importing goods and services.
Banks (called Authorised Dealer Category-I banks) must tell their customers about this new relaxation so they know they can use it.
How it plays out — a real example
A gold-loan officer in Indore, Priya, gets a call from a shipping company client who wants to import a cargo vessel worth USD 30 million. Priya explains that under the new RBI rule, the client can send the advance payment directly without needing a bank guarantee or standby Letter of Credit, saving time and paperwork. She reminds the client to check the Master Direction for any other conditions they must meet.
What you must do
Review the Master Direction – Import of Goods and Services for applicable conditions
Ensure compliance with FEMA regulations
Inform constituents about the relaxation
Who it affects
Authorised Dealer Category-I banks, Importers of shipping vessels
What is the maximum amount for advance remittance without guarantee?
USD 50 million
What are the applicable conditions for this relaxation?
Conditions mentioned in para-C.1.3.3 of Master Direction – Import of Goods and Services
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/55
A.P. (DIR Series) Circular No. 07
June 13, 2025
All Authorised Dealer Category-I banks
Madam / Sir,
Import of Shipping Vessel - Relaxation
Attention of Authorised Dealer (AD) Category - I banks is invited to Para C.1 of Master Direction – Import of Goods and Services (MD-Imports) dated January 01, 2016 .
2. With a view towards enhancing ease of doing business and keeping in view the sector-specific constraints, it has been decided to allow importers to make advance remittance for import of shipping vessel, without bank guarantee, or an unconditional, irrevocable standby Letter of Credit, up to USD 50 million, subject to the conditions mentioned in para-C.1.3.3 of MD-Imports, as applicable.
3. AD banks may bring the contents of this circular to the notice of their constituents concerned.
4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(N. Senthil Kumar)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/55 · issued 13 Jun 2025. The plain-English explanation above is BankPulse’s own independent summary.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI allows importers to make advance remittance for shipping vessel import up to USD 50 million without bank guarantee.
Q2. Who does this circular apply to?
Authorised Dealer Category-I banks, Importers of shipping vessels
Q3. What is the first thing you should do about it?
Review the Master Direction – Import of Goods and Services for applicable conditions
Review the Master Direction – Import of Goods and Services for applicable conditions
Ensure compliance with FEMA regulations
Inform constituents about the relaxation
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Authorised Dealer Category-I banks, Importers of shipping vessels), your first concrete step on “RBI Relaxation on Shipping Vessel Import” is: “Review the Master Direction – Import of Goods and Services for applicable conditions” (RBI issued this 13 Jun 2025).
Circular: RBI/2025-26/55 -- RBI Relaxation on Shipping Vessel Import
Issued: 13 Jun 2025
Action required: Review the Master Direction – Import of Goods and Services for applicable conditions
Action required: Ensure compliance with FEMA regulations
Action required: Inform constituents about the relaxation
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.
AI-drafted · 1-model AI consensus fact-check · under the editorial review of our expert review panel · decoded & published by BankPulse · 06 Jul 2026, 16:54 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12868&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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