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.
Exports Settled in Indian Rupees (INR)
The new regulations provide a special period for export transactions invoiced and/or settled in Indian Rupees (INR).
The specified realisation and repatriation period is up to 18 months, as provided under the regulations.
Exporters should maintain proper documentation relating to invoices, payment receipts, and banking records.
Exporters and importers should understand the New FEMA Regulations 2026 and review their compliance procedures.
Export Declaration Form (EDF)
The Export Declaration Form (EDF) is an important part of export reporting.
Under the new framework:
- For goods exported through an Electronic Data Interchange (EDI) port, the shipping bill may serve as the Export Declaration Form (EDF) submission.
- Service exporters must submit the EDF within the prescribed timeline.
- Subject to applicable provisions, service exporters may submit a single EDF covering exports made to one or more recipients during a month.
Accurate declarations and timely reporting help exporters comply with FEMA requirements.
Software Export Reporting
The new FEMA regulations cover software exports under the broader framework for export and import transactions.
The regulations specify authorities for export declarations and reporting, including the Authorised Dealer and Software Technology Parks of India (STPI), where applicable.
Software exporters should review their reporting procedures and coordinate with the relevant authorities and AD bank to maintain compliance.
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