FEMA Non-Debt Instruments Fourth Amendment Rules 2026 Permit Inventory E-Commerce Exports

Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2026

Summary: The Ministry of Finance, Department of Economic Affairs, has notified the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2026 through S.O. 4870(E) dated 2 September 2026. Issued under clauses (aa) and (ab) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999, the amendment further modifies the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. The amendment comes into force from the date of publication in the Official Gazette. It inserts serial number 15.2.5 in Schedule I of the 2019 Rules. Under the newly inserted provision, an e-commerce entity is permitted to engage in an inventory-based model of e-commerce exclusively for exporting goods or products manufactured or produced in India in accordance with the Foreign Trade Policy 2023, the Handbook of Procedures (HBP) and the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015. The amendment further provides that the restrictions on Business to Consumer (B2C) transactions and the inventory-based model of e-commerce stipulated under serial numbers 15.2.1 to 15.2.4 will not apply to exports of goods or products through e-commerce as permitted under the new provision. The notification records that the principal NDI Rules were originally published on 17 October 2019 and subsequently amended through the listed notifications up to S.O. 3030(E) dated 12 June 2026. TaxGuru has an exact publication of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and the immediately preceding Third Amendment Rules, 2026. No independently verified TaxGuru publication for the specific S.O. 4870(E) Fourth Amendment Rules, 2026 was identified; therefore, the exact current instrument is not substituted with an unverified link. TaxGuru also carries the relevant Foreign Trade Policy 2023, Handbook of Procedures 2023 and Foreign Exchange Management (Export of Goods & Services) Regulations, 2015.

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 2nd September, 2026

S.O. 4870(E). — In exercise of the powers conferred by clauses (aa) and (ab) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby makes the following rules further to amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, namely: ––

1. (1) These rules may be called the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2026.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, in Schedule I, in the Table, after serial number 15.2.4 and the entries relating thereto, the following serial number and entries shall be inserted namely: –

[F.No. 1/4/2026-EM]

Dr. Alok Tiwari, Jt. Secy.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub­section (ii), vide number S.O.3732 (E), dated the 17th October, 2019 and subsequently amended vide notification numbers: –

• S. O. 4355 (E), dated the 5th December 2019;
• S. O. 1278 (E), dated the 22nd April, 2020;
• S. O. 1374 (E), dated the 27th April, 2020;
• S. O. 2442 (E), dated the 27th July, 2020;
• S. O. 4441 (E), dated the 8th December, 2020;
• S. O. 3206 (E), dated the 9th August, 2021;
• S. O. 3411 (E), dated the 19th August, 2021;
• S. O. 4091 (E), dated the 5th October 2021;
• S. O. 4242 (E), dated the 12th October 2021;
• S. O. 1802 (E), dated 12th April 2022;
• S. O. 332 (E), dated 24th January 2024;
• S. O. 1361 (E), dated 14th March 2024;
• S. O. 1722 (E), dated 16th April 2024;
• S. O. 3492 (E), dated 16th August 2024;
• S. O. 2549 (E), dated 11th June 2025;
• S. O. 2174(E), dated 1st May 2026 and published on 2nd May 2026;
• S. O. 2186(E) dated 2nd May 2026;
• S. O. 3030 (E) dated 12th June 2026;