Banks seek RBI approval to apply new rules to legacy trade mismatches

From October 1, 2026, new RBI regulations will let banks close outstanding export-import payment entries by relying on client-provided reasons for delays, rather than seeking prior RBI approval for each case. A senior banker explained that banks are reluctant to apply the new discretionary powers to legacy mismatches without a clear go-ahead from the central bank, to prevent future questioning. Advisors argue that extending the new framework to existing cases would help write off large balances, set off receivables against payables, and address delayed imports and third-party payments.

While banks can independently clear entries up to ₹10 lakh per shipping bill without documentation, many outstanding amounts exceed this limit, and some companies are no longer reachable. Legal experts note that the revised rules increase banks' monitoring responsibilities but do not automatically regularise past non-compliance, which can still lead to caution listings.