What changed
RBI issued formal guidelines for AD Category-I banks to handle export-related receipts through OPGSPs. Previously, some OPGSPs allowed exporters to retain proceeds abroad, violating FEMA. Now, banks must open NOSTRO collection accounts, ensure automatic sweeping of funds, and repatriate proceeds within seven days.
What it means for you
Banks can now legally facilitate small-value e-commerce exports via OPGSPs, but must conduct thorough due diligence and maintain separate NOSTRO accounts. This reduces compliance risk for banks while enabling exporters to use digital payment gateways. Banks must ensure no funds are retained abroad and report transactions to RBI as required.
What you must do
- Conduct due diligence on OPGSPs before entering into arrangements.
- Obtain one-time permission from RBI before entering into arrangements with OPGSPs.
- Open a NOSTRO collection account for each OPGSP or ensure delineation of transactions, and ensure automatic sweeping of funds.
- Repatriate export proceeds to India immediately upon importer confirmation and no later than seven days from credit to the NOSTRO account.
- Submit transaction information to RBI when advised and reconcile accounts quarterly.
- Report details of each arrangement to RBI as and when entered into.
- Ensure OPGSPs open a liaison office in India within three months (if already operating) with RBI approval, or before operationalising new arrangements.
Who it affects
AD Category-I banks, Online Payment Gateway Service Providers (OPGSPs), Exporters of goods and services up to USD 500
What is the maximum export value covered under these guidelines?
The facility is only for export of goods and services not exceeding USD 500 per transaction.
How quickly must export proceeds be repatriated to India?
Funds must be credited to the exporter's account in India immediately after importer confirmation, and no later than seven days from the date of credit to the NOSTRO collection account.
What are the permitted debits from the NOSTRO collection account?
Only repatriation of export proceeds to India, payment of fee/commission to the OPGSP, and charge back to the importer if the exporter fails obligations.