RBI Notifies New FEMA Rules for Exports and Imports to Take Effect from October 01, 2026

In January 2026, the Reserve Bank of India (RBI) issued the ‘Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026’ under the Foreign Exchange Management Act, 1999 (FEMA), introducing uniform timelines and enhanced monitoring requirements for trade‑related foreign exchange transactions.

• These regulations will supersede the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 and are set to take effect from October 1, 2026.

Key Provisions:

Legal Authority: The FEMA (Export and Import of Goods and Services) Regulations, 2026 have been notified under Sections 7, 8, 10(6), and 47(2) of the FEMA, 42 of 1999.

Applicability: These new regulations are applicable to exports, imports and merchanting transactions, covering both goods and services which also include software exports and service imports.

Reference: It has been mandated that all references to RBI must be routed via the Platform for Regulatory Application, Validation and Authorisation (PRAVAAH) portal, and any doubtful transactions must be reported to the Directorate of Enforcement(ED) under the Ministry of Finance(MoF).

Declaration of Exports: As per new rules, an exporter of goods is required to submit a declaration in the Export Declaration Form (EDF) to the specified authority.

• In the declaration, it is  required to specify  the amount representing the full export value of goods, at the time export.

Reporting Timelines: Authorized Dealer (AD) banks have been mandated to enter EDF details for goods exported through non-EDI ports into the Export Data Processing and Monitoring System (EDPMS) within 5 working days of receipt.

Norms for Service Exports & Imports: For service exports, RBI has mandated banks to upload exporter-submitted EDF details into EDMPS within 5 working days of receipt from the exporter.

• Similarly, for services imported through non-EDI ports, AD banks are required to enter import document details in the Import Data Processing and Monitoring System (IDPMS) within the 5 working days of  receipt of the documents.
• Also, the details of service imports, as declared by importers must be uploaded within the same timeframe.

Export Realization Timeline: The new rules have specified that the export proceeds must be realized and repatriated within 15 months of shipment or invoice, while exports invoiced and settled in Indian Rupees (INR) must be realized within 18 months.

Reporting of Remittances: As per new FEMA regulations, all inward and outward remittances linked to exports, imports, and merchanting trade transactions must be reported in EDPMS and/or IDPMS.

Monitoring by AD Banks: RBI has empowered the AD banks to monitor all transactions in EDPMS and IDPMS for closure of outstanding entries.

• Also, they are required to follow-up with an exporter, an importer and persons undertaking Merchanting Trade Transactions (MTT) for submission of documents for the same.

Key Terms:

Authorised Dealer (AD): A bank, financial institution, or other entity authorised by the RBI to conduct foreign exchange transactions.

Export Declaration Form (EDF): The official form through which exporters declare the full value and details of goods or services exported from India.

Export Data Processing and Monitoring System (EDPMS): A digital platform used by the RBI and authorised dealer banks to track, monitor, and process export-related foreign exchange transactions,

Import Data Processing and Monitoring System (IDPMS): A digital system used by the RBI and authorised dealer banks to track, monitor, and manage import-related foreign exchange transactions.

About Reserve Bank of India(RBI):
Governor- Sanjay Malhotra(26th Governor of RBI)
Headquarter-Mumbai, Maharashtra
Established-1 April, 1935