You can invoice a foreign client in Indian rupees, and one route for that money to reach you is a Special Rupee Vostro Account (SRVA), a rupee account that a foreign bank holds with an Indian AD bank. The headline difference for your EDF is the clock: services invoiced or settled in rupees get 12 months from the invoice date to be realised, instead of the usual 9.
Key takeaways
- An SRVA is a rupee account held by a foreign correspondent bank with an Indian AD bank. Your client pays its own bank, which pays you in rupees from that account.
- Rupee invoicing is a choice of invoice currency. SRVA is one settlement route for it. The two are related but not the same thing.
- Realisation period: 12 months from the invoice date for rupee-invoiced or rupee-settled services, versus 9 months for foreign currency.
- On the EDF, the currency column in Part 2B shows INR, and in Part 4 you keep "Indian Rupees" and strike out "foreign exchange".
- GST zero-rating requires payment in convertible foreign exchange, or in rupees where RBI permits. Confirm with your CA before you rely on rupee receipts.
What a vostro account is
Banks hold accounts with each other to settle cross-border payments. From an Indian bank's point of view, an account it holds abroad in foreign currency is a nostro ("ours"). An account a foreign bank holds with it, in rupees, is a vostro ("yours"). Our glossary entries on vostro accounts and SRVA go into the mechanics.
A Special Rupee Vostro Account is a vostro account set up under RBI's framework for settling international trade in rupees. Instead of your client buying dollars and wiring them to you, the client pays its local bank in its own currency. That bank, which holds an SRVA with an Indian AD bank, pays you in rupees.
Whether this route is open for a particular client depends on whether their bank, or a bank they can use, has an SRVA arrangement with an Indian bank. Your AD bank's trade desk is the right place to ask.
Rupee invoicing without an SRVA
Rupee invoicing is broader than SRVA. You might quote ₹6,00,000 to a client abroad, and the client's bank converts its own currency and sends rupees through normal correspondent channels. Or the client might hold rupees through some other permitted arrangement.
The regulatory treatment of each route is something to confirm with your bank before you agree the payment method, because the documents the bank issues, and how it records the realisation, can differ.
| Feature | Foreign currency invoice | Rupee invoice settled via SRVA | Rupee invoice, other settlement route |
|---|---|---|---|
| Invoice currency | USD, EUR, GBP etc. | INR | INR |
| Who bears exchange risk | You (until conversion) | Your client | Usually your client |
| Realisation period for services | 9 months from invoice date | 12 months from invoice date | 12 months if invoiced/settled in INR |
| EDF Part 2B currency | Foreign currency | INR | INR |
| Part 4 declaration | Keep "foreign exchange" | Keep "Indian Rupees" | Keep "Indian Rupees" |
| Proof of receipt | FIRA/FIRC/bank advice | Ask bank what it issues | Ask bank what it issues |
The 12-month rule in practice
The Regulations give services 9 months from the invoice date to realise the full export value, and 12 months where the export is invoiced or settled in Indian rupees. The AD bank can extend either period on a reasoned request.
Take Indigo Loop Technologies Pvt Ltd, a Chennai software services firm. On 15 January 2027 it invoices a client ₹18,40,000 for a testing engagement, with the client paying through its bank's SRVA arrangement.
- EDF: the invoice goes in the January 2027 EDF, due 2 March 2027.
- Realisation deadline: 15 January 2028, which is 12 months from the invoice date.
- Had the same invoice been raised in US dollars, the deadline would have been 15 October 2027.
Three extra months is helpful for clients with slow payment cycles, but it is not a reason to relax your collection follow-up. An invoice that takes eleven months to pay is still a cash flow problem.
Filling the EDF for a rupee invoice
Most of the form does not change. A few fields need attention.
Part 1, field 1.12, mode of realisation. Usually "Others", since SRVA settlement is a bank transfer rather than a letter of credit or guarantee. Ask your bank if it wants a note.
Part 1, field 1.22, total value in INR. For a rupee invoice there is no conversion. The total is simply the sum of your rupee invoices, plus the converted value of any foreign currency invoices on the same form.
Part 2B. Currency column: INR. Amount: the rupee figure. NRV: what you expect to receive after any agreed deductions.
Part 4. Strike out "foreign exchange" and keep "Indian Rupees". If the same EDF also covers foreign currency invoices, you have a mixed form; ask your bank whether it prefers separate EDFs for rupee and foreign currency invoices so the declarations are clean.
The GST question you must ask
For GST, export of services is a zero-rated supply only if all the conditions in Section 2(6) of the IGST Act are met. One of them is that payment is received in convertible foreign exchange, or in Indian rupees wherever permitted by RBI.
That "where permitted by RBI" clause is the crux. Before you invoice in rupees and treat the supply as zero-rated under your LUT, have your CA confirm that the specific settlement route qualifies. Our article on the five conditions in Section 2(6) explains each one. This is general information, not legal or tax advice.
When rupee invoicing makes sense
Rupee invoicing suits some relationships better than others:
- Clients who cannot easily access dollars or euros. If your client's country has limited access to major currencies and its banks use SRVA, rupees may be the practical route.
- Long-term contracts where you want price certainty. A rupee price removes your exchange risk entirely, though your client takes it on.
- Slow-paying institutional clients. The 12-month period gives more breathing room.
It suits less well when your costs are in foreign currency, or when your client simply prefers a currency it knows. Discuss it early, and put the agreed currency and payment route in the contract.
Frequently asked questions
What is an SRVA in simple terms?
A Special Rupee Vostro Account is a rupee account that a foreign bank holds with an Indian AD bank under RBI's framework for trade settlement in rupees. Your overseas client pays its own bank, and that bank pays you in rupees out of its SRVA.
How long do I have to realise a rupee-invoiced service export?
Twelve months from the invoice date, where the export is invoiced or settled in Indian rupees. For foreign currency invoices the period is 9 months. Your AD bank can extend either on a reasoned request.
Do I still file an EDF if I invoice in rupees?
Yes. The EDF applies to service exports whatever the invoice currency. You show INR in the Part 2B currency column and keep "Indian Rupees" in the Part 4 declaration.
Will I get a FIRA for a rupee payment through an SRVA?
Ask your bank what document it issues for rupee receipts from a vostro account and whether it carries a purpose code. You need some bank evidence of receipt to close the EDPMS entry and to support your GST position.
Is a rupee invoice still a zero-rated export under GST?
It can be, but only if payment in rupees is permitted by RBI for that route and the other Section 2(6) conditions are met. Confirm the specific arrangement with your CA before treating the supply as zero-rated.
Bottom line
Rupee invoicing shifts exchange risk to your client and stretches your realisation window to 12 months, but it adds questions about settlement route and GST that you should settle before the first invoice. Read our note on the 12-month rule for rupee invoices, then prepare a clean rupee invoice with our free export invoice generator.
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.