RBI Notifies FEMA (Export and Import of Goods and Services) Regulations, 2026

The Reserve Bank of India has, on January 13, 2026, notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, replacing the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015, last amended in November 2025. The regulation, effective from October 01, 2026, promotes ease of doing business and empowers authorised dealers (AD) to provide quicker and more efficient service to their customers. Key changes include:

Specified Authority

Regulation 2(1)(f) defines “specified authority” distinctly for goods, services, and software, and separately for DTA and SEZ. For goods, the authority is the Commissioner of Customs (DTA) or Development Commissioner (SEZ). For services, it is the Authorised Dealer (DTA) or Development Commissioner (SEZ). For software, it is the Authorised Dealer or STPI (DTA) and Development Commissioner (SEZ). Services include software (Explanation).

Export Declaration (including Form)

Under Regulation 3, exporters of goods shall furnish an Export Declaration Form (EDF) at the time of export, deemed filed through shipping bills at EDI ports. The EDF waiver provided in earlier regulations has been discontinued. Exporters of services shall furnish EDF within 30 days from the end of the month of invoicing (Regulation 3(2)). A single EDF may be submitted for multiple service exports in a month. Authorised Dealers may allow delayed submission. The EDF is prescribed in the Annex. Further, a traveler from India moving personal effects shall not be treated as an exporter. 

Managing Entries

Under Regulations 4 and 18, Authorised Dealers shall update, monitor and close export and import entries in EDPMS and IDPMS. Entries up to ₹10 lakh may be closed based on exporter or importer declarations, including quarterly bulk closures. Authorised Dealers must follow up for closure of outstanding entries.

Export Realisation Timelines

Regulation 5 requires export proceeds to be realised and repatriated within 15 months from shipment (goods) or invoice (services), and from sale in the case of warehouse exports. Where invoiced or settled in INR, the period is 18 months. Authorised Dealers may grant extensions.

Export Values

Under Regulation 6, Authorised Dealers may permit reduction or non-realisation of export value upon being satisfied with the reasons. For exports up to ₹10 lakh per invoice or shipping bill, reduction or non-realisation may be permitted based on exporter declaration.

Commercial Set-off Practices

Regulation 7 permits set-off of export receivables against import payables with the same overseas counterparty or overseas group or associate companies, within the prescribed or extended realisation period.

Third-Party Receipts and Payments

Under Regulation 8, Authorised Dealers may permit third-party receipts and payments for export and import transactions after satisfying themselves of the bona fides of the transactions.

Import Payment

Regulation 9 requires import payments to be made within the period specified in the underlying contract. Authorised Dealers shall monitor IDPMS entries and may allow extensions for delays on being satisfied with the reasons cited.

Advance Payments

Under Regulation 10, advance receipts for exports and advance payments for imports shall be routed through the same Authorised Dealer, subject to permitted change with intimation. Authorised Dealers may permit advance remittance for imports and may require standby letters of credit or guarantees. Interest on export advances or delayed import payments shall not exceed the trade credit all-in-cost ceiling.

Non-materialised Imports and Unrealised Exports

Regulation 12 requires repatriation of import advances where imports do not materialise; failure triggers mandatory standby LC or bank guarantee for future advances. Under Regulation 13, where export proceeds remain unrealised beyond one year from the due date or extended period, further exports shall be only against advance payment or irrevocable LC.

Merchanting Trade Transactions (MTT)

Regulation 16 provides that the period between outward and inward remittances shall not exceed six months, subject to extension by the Authorised Dealer. Remittances shall be between the overseas seller and buyer, subject to permitted third-party arrangements. Authorised Dealers shall ensure EDPMS/IDPMS closure for both legs and monitor completion.

Project Exports

Under Regulation 15, Authorised Dealers may permit receipts and payments for project exports as per the underlying contract. Project exporters may deploy temporary overseas cash surplus in short-term instruments, subject to monitoring by the Authorised Dealer.

INR Trade Settlements

Regulation 17 provides that Authorised Dealers shall be guided by the extant RBI framework and instructions on international trade invoicing and settlement in Indian Rupees.

Internal Policy and SOP for Authorised Dealers

Regulation 19 requires Authorised Dealers to maintain a comprehensive internal policy and SOP covering documentation, timelines, charges, extensions, adjustment of export proceeds, advance payments and delegation of powers. Policies must include escalation and appeal mechanisms and be disclosed on the AD’s website.