Indian exporters are breathing a sigh of relief after the Reserve Bank of India (RBI) relaxed rules for Merchanting Trade Transactions (MTT). The changes aim to make business smoother, especially for small exporters and retailers, according to the Engineering Export Promotion Council of India (EEPC India).
The RBI extended the timeframe for spending foreign exchange in these trades from four months to six months. This update kicks in on October 1, 2025, giving traders more breathing room to handle deals without rushing.
On top of that, the central bank streamlined how exporters and importers close out entries in the Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS). For deals worth up to Rs 10 lakh per bill, you can now reconcile and wrap up these entries with a simple declaration. Exporters just need to confirm they’ve received the payment, while importers verify they’ve paid up.
EEPC India praised the move, saying it cuts down on paperwork and compliance headaches for micro, small, and medium enterprises (MSMEs). “These RBI reforms were something we’ve pushed for a long time,” said EEPC Chairman Pankaj Chadha. “They’ll lighten the load for small exporters and add real flexibility for merchant traders.”
Under the new guidelines, even if the actual value of a shipping bill or import entry drops below what’s declared, that’s okay—as long as the exporter or importer declares it. This helps avoid penalties for minor tweaks in trade values.
The RBI isn’t stopping here. It’s also pushing the Indian rupee (INR) for settling international trades and has set reference rates for the rupee against key trading partners’ currencies. Chadha added that all these steps will supercharge India’s trade and investments while slowly taking the INR global. For small businesses eyeing exports, this could mean fewer barriers and more opportunities ahead.
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