MERCHANTING TRADE TRANSACTIONS (MTT) - REVIEW OF TIME PERIOD FOR OUTLAY OF FOREIGN EXCHANGE

NEW DELHI, Oct. 1 -- The Government of India issued the following FEMA circular:

RBI/2025-26/88

A.P. (DIR Series) Circular No. 11

October 01, 2025

All Authorised Dealer Category-I Banks

Madam / Sir,

Merchanting Trade Transactions (MTT)

- Review of time period for outlay of foreign exchange

Attention of Authorised Dealer Category - I banks (AD banks) is invited to Para 2 (vi) of A.P. (DIR Series) Circular No.20 dated January 23, 2020 wherein it has been indicated that 'The entire MTT shall be completed within an overall period of nine months and there shall not be any outlay of foreign exchange beyond four months. The commencement date of merchanting trade shall be the date of shipment / export leg receipt or import leg payment, whic...