Summary: The Reserve Bank of India (RBI), through Notification No. FEMA 23(R)/(2)/2026-RB dated 2 November 2026, has issued the Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026, effective from 1 October 2026. The notification amends the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, notified on 13 January 2026, and introduces targeted relaxations in Export Declaration Form (EDF) requirements for services and reporting of service imports through the Import Data Processing and Monitoring System (IDPMS).
The amendment inserts a definition of “resident individual” in Regulation 2(1), covering a person resident in India who is a natural person. Under the revised Regulation 3(2), a resident individual exporting services is deemed to have submitted the EDF when the required information relating to receipt of payment is furnished to the Authorised Dealer for crediting the exporter’s account. For service exporters other than resident individuals, the same deemed-submission treatment applies where the inward remittance does not exceed ₹10 lakh or its foreign-currency equivalent. These provisions simplify the declaration process while retaining the requirement to furnish relevant payment information to the Authorised Dealer.
The amendment also revises Regulation 18(1)(d), restricting the specified IDPMS reporting requirement for imports of services to cases where the importer is a person other than a resident individual and the invoice or contract value exceeds ₹10 lakh or its foreign-currency equivalent. In such cases, the Authorised Dealer must enter the relevant details within five working days of receiving them. The amendment thereby excludes resident individuals and qualifying lower-value service imports from this particular reporting requirement.
The changes follow the first amendment dated 22 September 2026. Exporters, importers and Authorised Dealers should distinguish the new deemed-EDF provisions from the general declaration framework and apply the revised reporting thresholds without treating them as exemptions from all other applicable FEMA obligations.
RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
Mumbai 400 001
Notification No. FEMA 23(R)/(2)/2026-RB | Dated: November 02, 2026
Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026
In exercise of the powers conferred by Section 7, Section 8, sub-section (6) of Section 10 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following amendments to the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 [Notification No. FEMA 23(R)/2026-RB dated January 13, 2026] (hereinafter referred to as ‘the principal regulations’), namely:
1. Short title and commencement: –
(1) These regulations may be called the Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026.
(2) These regulations shall come into force from October 01, 2026.
2. In the principal regulations, in regulation 2, sub-regulation (1), after clause (d), the following shall be inserted, namely: – “(da) “resident individual” means a person resident in India who is a natural person.”
3.1 In the principal regulations, in regulation 3, in sub-regulation (2), the following shall be inserted as provisos (a) and (b), namely:-
“(a) the exporter of services shall be deemed to have submitted the EDF when such exporter, being a resident individual, provides information required in relation to the receipt of payment for such services to the Authorised Dealer for crediting the account of the exporter.
(b) the exporter of services shall be deemed to have submitted the EDF when such exporter, being a person other than a resident individual, provides information required in relation to the receipt of payment for such services to the Authorised Dealer for crediting the account of the exporter if the value of the inward remittance for such service is not more than ₹10 Lakh (or its equivalent in foreign currency).”
3.2 In the principal regulations, in regulation 3, in sub-regulation (2), the proviso numbers (a), (b) and (c), shall be renumbered as (c), (d) and (e).
4. Amendment to regulation 18:-
In the principal regulations, in regulation 18, in sub-regulation (1), in clause (d), for the words “shall enter details of import of service, in IDPMS, as declared and submitted by the importer, within five working days of receipt of documents”, the following shall be substituted, namely: – “shall enter details of import of service in IDPMS, as furnished by the importer who is a person other than a resident individual and where the invoice or the contract value is more than ₹10 Lakh (or its equivalent in foreign currency), within five working days of receipt of details”.
(N. Senthil Kumar)
Chief General Manager
Footnote: The Principal Regulations, Notification No. FEMA 23(R)/2026-RB dated January 13, 2026, were published in the Official Gazette – Extraordinary – Part-III, Section 4 on January 15, 2026 and subsequently amended, vide:
i. Notification No. FEMA 23(R)/(1)/2026-RB dated September 22, 2026 [Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026] published in the Official Gazette of Government of India – Extraordinary – Part III, Section 4 on September 24, 2026.
