RBI Eases Vessel Import Norms with USD 50M Advance Remittance

Circular No. RBI/2025-26/55 A.P. (DIR Series) Circular No. 07, Dated: 13.06.2025

The Reserve Bank of India (RBI) has introduced a significant relaxation in the foreign exchange regulatory framework concerning the import of shipping vessels.

1. Key Update

The RBI has decided to permit importers to make advance remittance of up to USD 50 million for the import of vessels used for shipping purposes without requiring the submission of a:

• Bank Guarantee (BG), or
• Unconditional, irrevocable Standby Letter of Credit (SBLC).

2. Applicable Conditions

This relaxation is subject to compliance with the conditions prescribed under Para C.1.3.3 of the Master Direction on Import of Goods and Services (MD-Imports), issued on January 1, 2016, and updated from time to time.

The conditions may include, among others:

• Due diligence by the Authorised Dealer (AD) bank;
• Verification of the credentials of the overseas supplier;
• Ensuring the genuineness of the import transaction;
• Compliance with timelines for receipt of goods and settlement of bills.

3. Impact of the Relaxation

This move is expected to:

• Enhance ease of doing business for Indian shipping companies;
• Facilitate timely acquisition of vessels for trade and transportation;
• Reduce the financial burden and procedural delays related to furnishing BGs or SBLCs;
• Support the maritime and logistics sector, which plays a crucial role in foreign trade.

4. Conclusion

By allowing advance remittance of up to USD 50 million without collateral instruments, the RBI has taken a progressive step to support importers in the shipping sector, while still maintaining safeguards through the prescribed conditions under its Master Directions.

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