The Reserve Bank of India (RBI) has announced that the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 will be effective from October 1. These regulations aim to simplify compliance for small traders and enhance digital monitoring. The rules, unveiled on January 13, will replace the 2015 export regulations, allowing authorized dealer banks to handle routine trade matters internally.
Exporters of goods will still need to declare shipment values through the Export Declaration Form (EDF) in shipping bills at EDI ports, which support electronic customs clearance and trade documentation. Service exporters are required to submit declarations within 30 days of issuing invoices, with an option for consolidated monthly filings and extensions approved by banks. The new rules also encompass software exports as part of services, with authorized dealers and Software Technology Parks of India (STPI) identified as specified authorities.
The RBI has maintained the existing 15-month timeline for realizing and repatriating export proceeds, extending it to 18 months for transactions invoiced or settled in Indian rupees. For transactions under Rs 10 lakh, small-scale exporters and importers can resolve outstanding entries in the RBI’s monitoring systems through self-declarations, including quarterly bulk submissions, to ease procedures for MSMEs and service exporters. The regulations emphasize that charges imposed by authorized dealers for transactions and associated processes must be reasonable and proportional to the services provided.
Furthermore, the RBI has prohibited authorized dealers from imposing charges or penalties on their clients (exporters, importers, or merchant traders) for any regulatory delays or violations. These measures are intended to streamline trade operations and enhance services for small businesses and traders.
