RBI’s New Export & Import Regulations (2026) : A Significant Shift in Compliance Framework
With a view to enhancing ease of doing business in international trade through simplified procedures and reduced compliance burdens, the Reserve Bank of India (“RBI“), on January 16, 2026, has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 and Directions on Export and Import of Goods and Services. These New Regulations shall come into effect from October 1, 2026 and replaced the 2015 FEMA Regulations.
By bringing exports and imports of both goods and services under a single foreign exchange framework, the RBI has sought to make compliance simpler, bring greater transparency and strengthen the monitoring of foreign exchange flows, especially in the case of services transactions.
This change is important because services now make up a large and growing part of India’s exports, but earlier they were not captured very well under the FEMA reporting system. At first glance, the new rules appear to be aimed at bringing services exports under a more structured and centralized reporting system.
Now, AD Banks are required to ensure compliance with these regulations and must route all references to the RBI via the “Platform for Regulatory Application, Validation and Authorisation (“PRAVAAH”) portal and report any suspicious transaction to the Directorate of Enforcement (DoE),
Comparative Analysis: FEMA Export – Import Regulations, 2015 v/s 2026
| Particulars | Existing Regulations – (2015) | New Regulations – (2026) (w.e.f 1st October,2026) |
| Regulatory Approach | Fragmented approach | Consolidated/Unified Manner |
| Export Declaration for Goods | Declaration was made through:-
|
All Exporters will be required to file the EDF at the time of export of goods.
EDF will be deemed to be submitted as part of the shipping bill for goods exported through EDI Ports |
| Export Declaration for Services including Software | There is no such reporting requirement.
SOFTEX to be filed and certification by STPI/Non-STPI or by SEZ (in respect of software) |
The exporter is required to submit the Export Declaration Form (EDF) within 30 days from the end of the month in which the invoice for the export is issued. The same requirement applies to exports of software.
Further, exporters are allowed to file one consolidated EDF covering all service and software exports made to multiple customers during a particular month. |
| Realisation of Export Proceeds
(For both Goods and Services) |
Initially, it was 9-12 months but recently extended to 15 months.
(AD Banks may grant extension up to 6 months from the due date) |
In case of goods, 15 months from the date of shipment
In case of services including software, 15 months from the date of invoice If the invoice is traded in INR, 15 months will be substituted for 18 months. If Export Proceeds unrealized beyond one year from the due date, further exports permitted only against full advance payment or Irrevocable Letter of Credit. (AD Banks may grant extension on the basis of customer’s transaction and their policy/SOP) |
| Payment of Imports | Normal Imports – It was required to be made within 6 months from the date of shipment.
Capital Goods – Three years (in case of deferred payment arrangements) |
It is based on the underlying contract between the Importer and the Foreign Party. |
| Reporting System | EDPMS / IDPMS (Developing stage) | Fully Integrated Digital Reporting – “ PRAVAAH” |
| Write Off Mechanism | Different types of transactions have separate provisions and limits, with specific caps prescribed under the regulations.
For Example : Write-off of export proceeds is permitted up to 5% of the invoice value in cases such as quality issues, short receipt compared to the value declared in the Bill of Entry or other operational reasons. |
Under the new regulations, the AD Bank may allow a reduction in export invoice value, including cases of partial or non-realisation, based on a request from the exporter supported by proper justification and stated reasons.
For transactions up to Rs 10 lakhs (or its foreign currency equivalent), RBI permits closure of EDPMS/IDPMS entries based on a self-declaration by the trader confirming realisation of export proceeds or completion of import payments. Such declarations may be submitted to the AD Bank on a consolidated quarterly basis, enabling bulk reconciliation and simplified compliance. |
| Reporting System | Exports and Imports were reported through separate systems EDPMS for Exports and IDPMS for Imports
No statutory Timeline prescribed for document upload by AD Banks |
Unified Reporting Framework – For Export and Import transactions.
AD Bank must upload documents within 5 working days of Receipt. |
| Set off of Export Receivables with Import Payables | Set off of payment pertaining to goods against services not allowed.
Set off with overseas group or associate companies may be processed on a net or gross basis through in-house or outsourced centralised settlement arrangements. The export and import legs of the transaction must be completed within the same calendar year and supported by an underlying agreement. |
Set off of export receivables for goods against import payables for services, and vice versa, is now permitted.
Such set offs may be carried out with the same overseas counterparty or its group or associate companies, within the prescribed export realisation period or any extended period approved by the AD Bank. The earlier requirement of completing both legs within the same calendar year and having a specific agreement has been removed. |
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