Master Direction – Import of Goods and Services (Updated as on January 12, 2026)
UR
- Applies toAll regulated entities
- StatusIn force
- IssuedJan 04, 2016
- Amendmentsnone tracked
- Length42 points in 4 sections · 5 min read
The four dates on this rule
- PublishedJan 04, 2016The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNot statedNot stated separately in this document. Read the rule itself before you assume a start date.
- Time to get readyNot statedCannot be worked out until the day it starts to apply is known.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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28 of the 42 points name no product and bind every product. All products.
Numbers to remember
| six months | An import bill must be settled within six months of the shipment date. RBI Section B.5.1 |
| three years | Interest on a delayed import payment is only payable for up to three years from the shipment date. RBI Section B.5.1 |
| one year | A deferred-payment deal beyond three years for capital goods, or beyond one year for goods, is treated as trade credit. RBI Section B.5.2 |
| 10 per cent | A further extension needs outstanding under USD 1 million, or 10 per cent of average imports, whichever is lower. RBI Section B.5.4 |
| fifteen days | The importer must give proof of import within fifteen days after that period closes. RBI Section C.1.3 |
| Rs.100 crore | The listed company using that certificate route must show a net worth of at least Rs.100 crore. RBI Section C.7.2 |
| 5 per cent | The bank may close a Bill of Entry with a mismatch up to 5 per cent of invoice value. RBI Section C.8 |
| eleven days | A Qualified Jeweller gets eleven days to bring in gold bought through India's bullion exchange. RBI Section C.11.3 |
| 90 days | Credit for importing platinum, palladium, rhodium or silver may not run past 90 days from the shipment date. RBI Section C.12.1 |
| 180 days | A diamond importer's clean credit, with no letter of credit behind it, may run up to 180 days. RBI Section C.12.1 |
| nine months | A merchanting trade must be finished within nine months, with the money out for no more than six months. RBI Section C.14.1 |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Must know
1. Follow the Foreign Trade Policy
The bank must ensure imports match the government's Foreign Trade Policy in force.
2. Six months to settle
An import bill must be settled within six months of the shipment date.
3. Interest capped at three years
Interest on a delayed import payment is only payable for up to three years from the shipment date.
4. Deferred payment becomes trade credit
A deferred-payment deal beyond three years for capital goods, or beyond one year for goods, is treated as trade credit.
5. Books have no time limit
Remittances for importing books carry no time limit at all.
6. Extension in six-month steps
The bank can extend the settlement deadline by six months at a time, up to three years in total.
BankPulse example. Six months of extension, taken six times in a row, comes to three years -- the same three years RBI's own words allow in total.
7. USD 1 million extension cap
A further extension needs outstanding under USD 1 million, or 10 per cent of average imports, whichever is lower.
8. Guarantee needed past USD 200,000
An advance remittance for goods over USD 200,000 needs a standby letter of credit or a bank guarantee.
9. Track record waives the guarantee
A trusted importer can skip that guarantee for advance remittances up to USD 5,000,000.
10. Government waiver above USD 100,000
A public-sector importer needs a Finance Ministry waiver before an advance remittance past USD 100,000.
11. Aircraft advance, USD 50 million
Advance payment for an aircraft or helicopter can go up to USD 50 million without a bank guarantee.
12. Six months to import it
The aircraft or helicopter must physically arrive within six months of the remittance, or three years for capital goods.
13. Fifteen days to prove it
The importer must give proof of import within fifteen days after that period closes.
14. Shipping vessels, USD 50 million
A shipping vessel can also be paid for in advance up to USD 50 million, without a bank guarantee.
15. Services guarantee past USD 500,000
Advance payment for services over USD 500,000 needs a guarantee from an international bank.
16. Services waiver above USD 100,000
A public-sector importer of services needs a Finance Ministry approval to skip the guarantee past USD 100,000.
17. Direct bills under USD 300,000
An importer may receive bills straight from the overseas supplier if the bill is under USD 300,000.
18. Diamond importers, USD 300,000 line
A non-status-holder diamond importer may also receive bills directly from the supplier up to USD 300,000.
19. Certificate route, USD 1 million
A CEO or auditor certificate can stand in for the Bill of Entry if the remittance is under USD 1,000,000.
20. Rs.100 crore net worth needed
The listed company using that certificate route must show a net worth of at least Rs.100 crore.
21. Write-off allowed up to 5%
The bank may close a Bill of Entry with a mismatch up to 5 per cent of invoice value.
22. One year to keep paperwork
Import documents must be kept on file for one year after they are verified.
23. Nominated banks import on consignment
Banks and agencies named by the DGFT may import gold on a consignment basis.
24. Gold coins allowed, sale barred
Importing gold coins and medallions is allowed, but banks still may not sell them to customers.
25. Eleven days for IIBX gold
A Qualified Jeweller gets eleven days to bring in gold bought through India's bullion exchange.
26. Precious-metal credit, 90 days
Credit for importing platinum, palladium, rhodium or silver may not run past 90 days from the shipment date.
27. Clean credit extends 180 days
A diamond importer's clean credit, with no letter of credit behind it, may run up to 180 days.
28. Factoring needs no RBI approval
The bank may sign up with an international factoring company without asking RBI first.
29. Merchanting trade, nine months total
A merchanting trade must be finished within nine months, with the money out for no more than six months.
30. Merchanting advance guarantee, USD 500,000
A merchanting trader's advance for the import leg needs a bank guarantee once it passes USD 500,000.
31. 5% unrealised export, caution listing
A merchanting trader with 5 per cent or more of its export earnings unrealised is put on the caution list.
32. No financial-intermediary trades
A merchanting trader must be a genuine trader of goods, not just a financial go-between.
33. No third-party payments in trade
Neither leg of a merchanting trade may be paid to a third party.
34. No agency commission, normally
Agency commission is normally not allowed on a merchanting trade.
35. OPGSP route caps USD 2,000
The online payment-gateway route for small imports is capped at USD 2,000 per transaction.
36. No penalty for regulatory delay
The bank may not charge a penalty just for a delay in meeting regulatory paperwork.
Do it
1. Three months, then follow up
If evidence of import is still missing after three months, the bank must chase it for three more months.
2. Gold returns due the 10th
Half-yearly and monthly gold-import returns are due by the 10th of the next month, even with nothing to report.
3. Two days to forward money
The gateway provider must forward the payment to the overseas exporter within two days of receiving it.
Background
1. Who this is written to
This Master Direction is written for the banks licensed to handle foreign exchange.
2. Rule changes come as circulars
RBI changes these rules through A.P. (DIR Series) Circulars, and this Master Direction is updated to match.
3. Hardcopy no longer needed
Submitting a paper copy of the Bill of Entry was stopped from December 1, 2016, since IDPMS holds it now.