When a foreign client hasn't paid and the 9-month realisation window is closing, you write to your AD bank asking it to extend the period. The bank can extend realisation on a reasoned request, so the letter's job is to give it a reason it can accept: which invoices, how much is outstanding, why it's late, what you've done to collect, and when you now expect the money. Below is a format you can adapt, plus the mistakes that make banks hesitate.
Key takeaways
- Services must be realised within 9 months from the invoice date (12 months for INR invoices); ask for an extension before that date passes.
- The request must be reasoned — a specific explanation, not a general plea.
- List each invoice with its EDF reference, amount, currency and invoice date.
- Attach evidence: client correspondence, revised payment schedule, dispute notes.
- Your bank publishes its own process; ask whether it wants a particular format or supporting documents.
When to write
The best time is around month seven or eight, once you know a payment won't arrive in time but well before the deadline. Writing after the window has closed is still better than not writing at all, but you'll have more explaining to do.
| Invoice date | 9-month realisation date (approx.) | Write the extension letter by |
|---|---|---|
| 10 October 2026 | 10 July 2027 | Mid-May to early June 2027 |
| 25 November 2026 | 25 August 2027 | Late June to July 2027 |
| 5 January 2027 | 5 October 2027 | August 2027 |
If a client is chronically slow, our guide on protecting your 9-month window covers what to do from month three onwards, and our explainer on how to request an extension sets out the wider process.
What a reasoned request contains
Banks see many requests. The ones that move quickly have five elements:
- Identification. Your name, account number, AD code, IEC if you have one.
- Invoice details. Invoice number, date, currency, amount, amount outstanding, and the EDF on which it was declared.
- Reason for delay. Specific and factual: client's internal approval delay, a dispute over deliverables now resolved, the client's restructuring, a currency or banking issue in the client's country.
- Collection efforts. What you've done — reminders, calls, escalations — with dates.
- New expected date and period sought. A realistic date, with a little margin.
Reasons that tend to work and reasons that don't
| Usually convincing | Usually weak |
|---|---|
| Client has acknowledged the debt in writing and committed to a schedule | "Client is busy" |
| Deliverable dispute resolved; payment approved for a stated date | No contact with the client for months |
| Client's bank or country has payment restrictions, evidenced | Exporter "forgot" to follow up |
| Project milestone payment tied to client's acceptance, now scheduled | Request with no new expected date |
Sample letter format
Adapt the wording to your facts. Remove anything that doesn't apply.
To The Branch Manager / Trade Services [AD bank name], [Branch address]
Date: [DD Month YYYY]
Subject: Request for extension of realisation period — export of services — [Exporter name], A/c no. [XXXX]
Dear Sir/Madam,
We, [Exporter name], [address], holding current account no. [XXXX] with your branch (AD code [XXXX]; IEC [XXXX], if applicable), request an extension of the period for realisation of export proceeds for the following invoice(s), declared on our EDF for [month and year]:
Invoice no. Invoice date Client and country Currency and amount Outstanding [ ] [ ] [ ] [ ] [ ] Reason for delay: [Specific explanation, e.g. "The client, [name], disputed the scope of milestone 3 in March 2027. The dispute was resolved on [date], and the client has approved payment, as confirmed in the attached email dated [date]."]
Steps taken: [e.g. "Reminders on [dates]; call with the client's finance head on [date]; revised payment schedule received on [date]."]
Expected realisation: We expect to receive the full amount by [date]. We request an extension of the realisation period up to [date].
We confirm that the export was genuine and the amount remains recoverable. Copies of the invoice, EDF and correspondence are enclosed.
Yours faithfully, [Name], [Designation] [Exporter name] — Authorised signatory
Enclosures: invoice copy; EDF copy/acknowledgement; client correspondence; revised payment schedule
Our realisation extension request generator fills this format from a short form and outputs a print-ready letter.
Worked example
Asha Design Studio, a proprietorship in Kochi, invoiced a Toronto retailer CAD 8,400 (about ₹5,10,000) on 18 November 2026 for packaging design, declared on its November EDF. The retailer went through a management change and payment stalled. By June 2027, Asha had a written email from the new finance controller approving payment for 30 September 2027.
The realisation date was around 18 August 2027. On 2 July, Asha wrote to her AD bank using the format above, attaching the invoice, EDF acknowledgement and the controller's email, and requesting an extension to 31 October 2027 — a month's margin beyond the promised date. The request was specific, documented and early.
After you send the letter
- Ask for written confirmation of the extension and note the new date in your EDF register.
- Keep chasing the client. An extension buys time; it doesn't collect money.
- If the client pays part, tell the bank what's still outstanding and whether you need more time.
- If the debt becomes unrecoverable, ask your bank and CA about write-off — a different route with its own conditions under the RBI texts.
This is general information, not legal or tax advice.
Frequently asked questions
Who can extend the export realisation period for services?
Your AD bank can extend the period on a reasoned request. Ask your branch about its published process and any documents it needs.
When should I request an extension?
Before the 9-month window ends — ideally a month or two in advance, once you know payment won't arrive in time. Late requests can still be made, but expect more questions.
What reasons should I give in a realisation extension letter?
Specific, documented reasons: a resolved dispute with a payment date, a client's written commitment to a schedule, or a payment restriction in the client's country. Vague reasons without evidence are less likely to succeed.
Do I need to attach the EDF to the extension letter?
It helps. Include the invoice, the EDF on which it was declared (or its acknowledgement) and correspondence showing why payment is late. Ask your bank whether it needs anything else.
Can I request extensions for several invoices in one letter?
Yes, list each invoice in a table with its own details and reason. If the reasons differ, explain each one separately.
Bottom line
A realisation extension request succeeds when it is early, specific and supported by the client's own words. Generate the letter with our realisation extension request tool and record the bank's reply in your EDF register.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.