Question

The maximum time period permitted by the RBI for realization of cash exports or for payment of cash imports are ___________.

• A. 3m and 3m
• B. 3m and 6m
• C. 6m and 6m
• D. 6m and 3m
• E. As per the norms of the contract / LC

Answer 1

Answer: (C)

6m and 6m

As per the RBI guidelines full proceeds must be realized on the due date for payment or within six months from the date of shipment of the goods whichever is earlier. The payments for imports into India must be made within six months from the date of shipment.
RBI (FED) has been allowing in deserving cases, on application by individuals exports with satisfactory track record a longer period up to 12 months from the date of shipment for realization of proceeds of exports in case of following categories of exporters