Adv Hemant Goyal & CS Shagun
Summary: The consolidated FEMA export and import regulations effective from 1 October 2026 prescribe a general nine-month period for realisation and repatriation of export proceeds and a twelve-month period for exports invoiced and/or settled in Indian Rupees. Although the regulations originally issued in January 2026 proposed fifteen-month and eighteen-month periods respectively, the RBI amendment dated 22 September 2026 reduced these periods before the new framework commenced. For goods, the realisation period generally runs from shipment, while for services, including software, it runs from the invoice date; exports through overseas warehouses follow a separate starting point. Exporters should maintain invoice-wise receivables ageing, monitor approaching deadlines, reconcile accounting records with EDPMS, preserve supporting documents and approach their Authorised Dealer banks early where extensions are needed. The new framework also provides for AD Bank handling of specified legacy transactions, while existing orders concerning caution-listed exporters continue to apply. IT companies, SaaS providers, freelancers, consultants and other service exporters should pay particular attention to outstanding invoices and ensure that their internal compliance systems distinguish ordinary exports from INR-invoiced or INR-settled transactions.
FEMA 2026: What the 9-Month Rule Means for Exporters and Service Providers
If you export goods or services from India, there’s one date to keep in mind: 1 October 2026. That’s when the new consolidated FEMA export and import regulations take effect and the RBI has now settled how long you get to bring your money home.
The answer is 9 months in the general case and 12 months where the export is invoiced and/or settled in Indian Rupees.
How we got here ?
The timeline has moved around a lot this year, so some confusion is understandable.
When the RBI issued the new consolidated regulations in January 2026, they set a 15-month window for most exports and 18 months for INR transactions. Those regulations were always meant to start on 1 October. Meanwhile, the older 2015 rules had already gone back to 9 months in June 2026.
On 22 September 2026, the RBI amended the new regulations before they came into force. Regulation 5 now says nine months instead of fifteen and twelve instead of eighteen. In short, the longer window was removed before it ever started.
| January 2026 version | From 1 October 2026 | |
|---|---|---|
| General exports | 15 months | 9 months |
| INR invoiced/settled exports | 18 months | 12 months |
| Governing rules | 2015 export regulations, with import rules elsewhere | One consolidated framework for exports, imports and merchanting trade |
| Pre-October transactions that needed RBI approval | Referred to the RBI | Specified cases can be handled by your AD Bank |
| Caution-listed exporters | Existing orders apply | Existing orders continue until you’re removed from the list |
When does the clock start ?
For goods, it runs from the date of shipment. For services (software included), it runs from the date of the invoice. Goods sent to a warehouse outside India work differently, with the clock tied to the date of sale from that warehouse.
This matters most for service businesses. If you raise an invoice in January and your client is slow to pay, your nine months start in January, not when you chase them.
What to do now ?
You don’t need a big project. A few focused steps will cover most of it.
1. Build a receivables ageing report
List every open export invoice with its invoice or shipment date, currency, amount, customer and country, expected payment date, the FEMA deadline that applies and whether it’s been closed in EDPMS.
2. Set up early warnings
Don’t wait for something to become overdue. For a 9-month window, flag invoices at about 90 days, 180 days, 30 days before the deadline and on the deadline itself. For INR exports, use the same logic against the 12-month period.
3. Talk to your AD Bank early
If a payment is going to be late, go to the bank before the deadline with the reason and the paperwork. The new framework gives AD Banks a bigger role in extensions and each bank has its own internal policy, so find out how yours handles requests.
4. Reconcile your records
Your books and the bank’s FEMA records should tell the same story: invoice, shipping bill, bank receipt, EDPMS entry. If any link is missing or doesn’t match, fix it now. It’s much harder to sort out a year later.
5. Keep your service-export paperwork tidy
That means the engagement letter or agreement, the invoice, customer details, a description of the services, the inward remittance advice, bank statements and any emails about delayed payment. If the bank asks, you want it all in one place.
6. Tag INR exports separately
They have a different deadline, so they shouldn’t sit in the same bucket as your foreign-currency invoices.
7. Look at older transactions
Anything from before 1 October 2026 should be reviewed on its own. The amendment lets AD Banks handle certain legacy export, import and merchanting cases that used to need RBI approval (Regulation 20).
8. Check the Caution List
If you were on it as of 30 September 2026, the existing orders continue to apply until you’re taken off.
Who should pay particular attention ?
IT and software companies, SaaS businesses, freelancers, consultants, engineering and design firms, BPO/KPO businesses and anyone else who invoices overseas customers. If that’s you, the real risk isn’t understanding the rule. It’s losing track of a single old invoice.
Conclusion
Don’t plan around a 15-month window. It isn’t in force and it won’t be. Plan for 9 months or 12 for INR exports and make sure your finance team can see at any time which invoices are getting close.
FEMA compliance works best as a routine you follow all year, not something you catch up on at year-end.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
