The Reserve Bank of India's (RBI) new Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 came into force on October 1, 2026. They replace the 2015 export regulations and bring exports and imports under one set of rules. An amendment notified on September 22 also shortens the time exporters have to bring their sale money back to India.
The principal regulations were notified on January 13, 2026 (Notification No. FEMA 23(R)/2026-RB), with October 1 fixed as the start date. The amendment is Notification No. FEMA 23(R)/(1)/2026-RB dated September 22, 2026.
Key changes for exporters
- Shorter realisation period: the time to realise and repatriate export proceeds is cut from 15 months to 9 months. For goods it runs from the date of shipment, and for services from the date of the invoice.
- Rupee exports: for exports invoiced or settled in Indian rupees, the period is cut from 18 months to 12 months.
- Small transactions: entries of up to Rs 10 lakh in the banks' export and import monitoring systems (EDPMS and IDPMS) can be closed on the basis of a declaration.
- Services: an Export Declaration Form (EDF) now applies to exports of services, including software.
- Set-off and third-party payments: the rules expressly allow export receivables to be set off against import payables with the same or associated overseas party, and allow third-party receipts and payments where the bank is satisfied the deal is genuine.
- Import payments: monitoring of import payments is now tied mainly to the payment terms in the underlying contract.
More power to banks
Under a new Regulation 20, Authorised Dealer (AD) banks can now handle export, import and merchanting trade transactions undertaken before October 1, 2026 that earlier needed RBI approval. Exporters can go to their bank instead of applying to the RBI for these older cases.
Exporters who were on the RBI's Caution List as of September 30, 2026 stay under the existing orders until they are removed from the list.
What it means for exporters
- Check open shipping bills and invoices: from October 1, payment timelines are counted against the 9-month (or 12-month for rupee deals) limit.
- Software and other service exporters should check the new EDF filing process with their AD bank.
- Small, long-pending EDPMS or IDPMS entries of up to Rs 10 lakh may now be closed with a declaration instead of full documents.
Background
The 2015 regulations, issued under the Foreign Exchange Management Act, 1999, governed exports for over a decade. The September amendment was issued under Sections 7, 8, 10(6) and 47(2) of FEMA.
Exporters and importers should follow the RBI's notifications and the Master Directions on export and import for the detailed procedures, and ask their AD bank about pending transactions.
