Export–Import Finance · Question

What happens if I do not realise export proceeds within the allowed period?

Short answer

Foreign exchange regulations require exporters to bring export proceeds into India within a prescribed period, and delay can lead to your bank asking for explanations, restricting new facilities or reporting the matter. Extensions and other relief may be possible in genuine cases, but only through the authorised dealer bank and under the rules then in force. Speak to your bank early, not after the period has run out.

In more detail

The allowed period for realisation is set by the Reserve Bank of India and the foreign exchange laws, and it can be revised from time to time, so check the current position with your authorised dealer bank. What stays constant is the expectation: shipment must lead to money received through proper banking channels, matched against the shipping bill and the invoice.

When proceeds are overdue, several things can follow. The bank tracks outstanding export bills and will ask why payment has not arrived. It may restrict fresh finance or the handling of new export documents until the position is regularised. Where the bill was financed, interest and charges continue and the advance may be recalled. Persistent delay can also bring a regulatory enquiry, and the consequences under the law can include penalties decided by the competent authority.

Raise it with the bank as soon as you see risk, ideally before the deadline. Keep written proof of your efforts: reminders to the buyer, correspondence on disputes, quality claims or shipment problems. Where the buyer is genuinely unable to pay or a dispute exists, the bank can advise on whether an extension, a write-off request or another route is open, subject to conditions.

Build the date into your calendar

Record the realisation due date for each shipment and review the open items regularly with your bank relationship manager. Many problems become manageable when raised early with documents ready.

Credit assessment of the buyer before shipping, payment terms that match the risk, and export credit insurance where available all reduce the chance of ending up in this position. This page is general information and not legal advice; for a specific case, take advice from your bank or a qualified professional.

Key points

Export proceeds must be realised within a regulatory period, which can change, so confirm the current one.
Delays can lead to bank restrictions, higher costs and regulatory follow-up.
Extensions are possible only through the authorised dealer bank and in genuine cases.
Keep proof of buyer follow-up and report problems early.

Who this applies to

Exporters selling on open account or extended credit terms.
Businesses facing a buyer dispute or a slow-paying overseas customer.
Finance teams tracking outstanding export bills.

Last reviewed 3 October 2026

This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.