The Reserve Bank of India (RBI) vide notification dated January 12, 2018 has further updated Master Direction on Export of Goods and Services. The Directions lay down the modalities as to how foreign exchange business has to be conducted by the authorised persons with the customers/constituents with a view to implementing the regulations framed. Banks are to conduct export transactions in conformity with the Foreign Trade Policy in vague Rules framed by GOI, Directions issued by RBI from time to time, Foreign Exchange Management Act in respect of export of goods & services.
There is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications, Directions framed under FEMA 1999". It also notes Para 2.52 of FTP 2015-20 which inter alia stipulates but export proceeds shall be realised in freely convertible currency. Indian Rupee is not a freely convertible currency as yet.
[RBI/FED/2015-16/11 FED Master Direction No. 16/2015-16]