Old FEMA vs New FEMA 2026: Key Export-Import Regulations Effective from 1 October 2026 Part 1

The Foreign Exchange Management Act (FEMA) regulates India’s foreign exchange transactions, including export proceeds, import payments, software exports, and international trade compliance.

The Reserve Bank of India (RBI) has introduced the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, which will come into force on 1 October 2026.

These regulations establish a consolidated framework for export and import transactions. Exporters, importers, and finance teams should review the changes and update their compliance procedures to meet the new requirements.

Old FEMA vs New FEMA 2026: Regulatory Framework

Under the earlier framework, export and import transactions were governed through separate regulatory provisions.

The New FEMA Regulations 2026 consolidate the rules for exporting and importing goods and services . They also establish guidelines for reporting, realising export proceeds, and managing banking procedures.

This change is intended to provide a unified regulatory structure for international trade transactions.

Old FEMA vs New FEMA 2026 regulatory framework infographic. It explains the shift from separate export and import rules under the old framework to a unified framework covering export and import of goods and services, export proceeds realisation, reporting, and banking procedures. The graphic highlights simpler compliance, unified regulations, stronger global trade, and features DGFT EXIM Consultants with website www.dgftexim.com and phone number 8849767423.

Export Proceeds Realisation Timeline

One important concern for exporters is the deadline for receiving and repatriating export proceeds to India.

Existing framework

The 5 June 2026 amendment changed the applicable export proceeds realization period to 9 months under the existing regulations.

New framework from 1 October 2026

Under the 2026 FEMA Regulations, exporters must generally realise and repatriate export proceeds within the following timelines:

Goods: Within 15 months from the date of shipment.
Services: Within 15 months from the invoice date.
INR Transactions: Within 18 months for exports invoiced and/or settled in Indian Rupees (INR), subject to applicable provisions.

The Authorised Dealer (AD) bank may allow an extension on the exporter’s request and after reviewing the reasons for the delay.

Important: The applicable timeline depends on the regulatory framework and transaction details. Businesses should verify the relevant provisions with their AD bank to ensure compliance.

Infographic comparing export proceeds realisation timelines under Old FEMA and New FEMA Regulations 2026. Under the existing framework, the export proceeds realisation period is shown as 9 months as per the 5 June 2026 amendment. Under the new framework, the timeline is 15 months from the date of shipment for goods, 15 months from the invoice date for services, and 18 months where exports are invoiced and/or settled in Indian Rupees (INR), subject to applicable provisions. The infographic also notes that the Authorised Dealer (AD) Bank may extend the timeline after reviewing the exporter’s request and reasons for delay. DGFT EXIM Consultants branding, website www.dgftexim.com, and phone number 8849767423 appear at the bottom.

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