Chatroom: 'Export incentives available on payments received through SVAs'

Q. We refer to RBI’s AP (DIR) Circular no. 10 dated July 11, 2022, allowing settlement of international trade transactions in INR through Special Vostro Accounts (SVAs). Subsequently, various provisions of the FTP and HBP have been amended, bringing the relevant provisions in sync with the RBI Circular. Please advise how exporters will be affected by these changes, especially in regard to availing the incentives.

First, export invoicing in INR is already allowed but the payment must come through Vostro Accounts maintained by foreign banks with a bank in India. Second, trade with Nepal, Bhutan and Myanmar in INR is