The Reserve Bank of India (RBI) has issued Circular No. 07, dated June 13, 2025 (RBI/2025-26/55), introducing a relaxation for the import of shipping vessels. This amendment to the Master Direction – Import of Goods and Services (MD-Imports), dated January 01, 2016, permits Authorised Dealer Category-I banks to allow importers to make advance remittances for shipping vessel imports. The key change is that these remittances, up to a limit of USD 50 million, can now be made without requiring a bank guarantee or an unconditional, irrevocable standby Letter of Credit. This decision is aimed at enhancing the ease of doing business and addresses sector-specific constraints within the shipping industry. The relaxation is subject to the existing conditions outlined in para-C.1.3.3 of the MD-Imports. All Authorised Dealer banks are instructed to inform their relevant constituents about these new guidelines, which are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999.
Reserve Bank of India
RBI/2025-26/55
A.P. (DIR Series) Circular No. 07 Dated: June 13, 2025
All Authorised Dealer Category-I banks
Madam / Sir,
Import of Shipping Vessel – Relaxation
Attention of Authorised Dealer (AD) Category – I banks is invited to Para C.1 of Master Direction – Import of Goods and Services (MD-Imports) dated January 01, 2016.
2. With a view towards enhancing ease of doing business and keeping in view the sector-specific constraints, it has been decided to allow importers to make advance remittance for import of shipping vessel, without bank guarantee, or an unconditional, irrevocable standby Letter of Credit, up to USD 50 million, subject to the conditions mentioned in para-C.1.3.3 of MD-Imports, as applicable.
3. AD banks may bring the contents of this circular to the notice of their constituents concerned.
4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(N. Senthil Kumar)
Chief General Manager
