RBI Introduces New FEMA Rules for Exports & Imports (2026)

Current position — reviewed 22 August 2026: the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 were notified on 13 January 2026 and come into force on 1 October 2026. Until that date the 2015 regulations continue to apply.

The Reserve Bank of India (RBI), through its Central Office of the Foreign Exchange Department, has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 vide notification dated January 13, 2026. These regulations will replace the existing Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 and are scheduled to come into force from October 1, 2026.

The move is aimed at modernising India’s foreign exchange framework, aligning export–import compliance with current trade practices, digital transactions, and the growing importance of services and software exports.

Legal Framework and Authority

The new FEMA Regulations, 2026 have been issued by the RBI in exercise of the powers conferred under:

• Section 7 of the Foreign Exchange Management Act, 1999
• Section 8 of the Act
• Sub-section (6) of Section 10
• Sub-section (2) of Section 47 of FEMA, 1999 (42 of 1999)

RBI has clarified that any action taken or compliance completed under the 2015 regulations prior to October 1, 2026 shall remain valid, ensuring continuity and legal certainty for exporters and importers.

Objective of the New Regulations

The FEMA Export–Import Regulations, 2026 seek to:

• Simplify and standardise export and import declarations
• Strengthen monitoring of foreign exchange realisation
• Recognise the expanding scope of services and software exports
• Provide clarity on roles of authorised dealers and specified authorities
• Improve ease of doing business while maintaining regulatory oversight

Key Definitions Under FEMA Regulations, 2026

To ensure uniform interpretation, the regulations define several important terms:

1. Act

The term “Act” refers to the Foreign Exchange Management Act, 1999.

2. Authorised Dealer (AD)

An “Authorised Dealer” means a bank, financial institution, or any other entity authorised by the RBI to deal in foreign exchange transactions.

3. Export Declaration Form (EDF)

The Export Declaration Form (EDF) is the prescribed form through which exporters must declare the full value and details of goods or services exported outside India.

4. Project Export

“Project Export” carries the same meaning as assigned under the Foreign Trade Policy, generally covering turnkey projects, civil construction contracts, and engineering projects executed overseas.

5. Software

The definition of software has been widened and now includes:

• Computer programs
• Designs and drawings
• Data and databases
• Audio and video signals
• Other digital content

provided that such software is not supplied on physical media.

6. Specified Authority

The “Specified Authority” depends on:

• Whether the transaction involves goods, services, or software
• Whether it is undertaken in a Domestic Tariff Area (DTA) or a Special Economic Zone (SEZ)

For the purposes of these regulations, services include software exports.

Export Declaration Requirements

Export of Goods

Every exporter of goods is required to:

• Furnish a declaration in the Export Declaration Form (EDF)
• Declare the true and full value of goods exported
• Submit the declaration to the specified authority at the time of export

In cases where exports are made through an Electronic Data Interchange (EDI) port, the EDF declaration is deemed to be integrated with the shipping bill, eliminating the need for separate documentation.

Exclusion: Personal Effects

Individuals carrying personal effects while travelling abroad are expressly excluded from the definition of exporters and are not required to comply with EDF provisions.

Export of Services and Software

For exporters of services (including software):

• A declaration must be submitted within 30 days from the end of the month in which the invoice is raised
• The declaration should contain accurate details of the nature of services, invoice value, and expected foreign exchange realisation

This provision is particularly significant for India’s IT, consulting, fintech, and digital service sectors, which contribute substantially to foreign exchange earnings.

Significance of Replacing 2015 Regulations

The replacement of the 2015 regulations reflects:

• Growth in cross-border digital trade
• Increased importance of services and software exports
• Need for clearer compliance timelines
• Alignment with electronic systems and data-driven monitoring

The 2026 regulations are expected to reduce ambiguity, improve compliance efficiency, and provide exporters with clearer procedural guidance.

Impact on Exporters, Importers, and Professionals

For Exporters and Importers

• Better clarity on documentation and timelines
• Recognition of modern trade formats
• Reduced procedural friction through EDI integration

For Authorised Dealers

• Enhanced responsibility in monitoring declarations and realisation of export proceeds
• Clearer regulatory backing under updated FEMA provisions

For CAs, CSs, and Trade Consultants

• Updated compliance framework to advise clients
• Increased relevance in structuring export–import transactions
• Need to align internal processes before October 1, 2026

Effective Date and Transition

The FEMA Export–Import Regulations, 2026 will come into force on October 1, 2026. Until then, the 2015 regulations will continue to apply.

Stakeholders are advised to:

• Review existing export–import processes
• Train compliance and finance teams
• Coordinate with authorised dealers for a smooth transition

Conclusion

The RBI’s notification of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 marks a significant step in updating India’s foreign exchange compliance framework. By replacing the decade-old 2015 rules, the RBI has acknowledged the evolving nature of global trade, especially in services and digital exports.

Exporters, importers, and professionals should carefully study the new regulations and prepare in advance to ensure seamless compliance when the rules become effective from October 1, 2026.

For complete and authoritative details, stakeholders should refer to the official RBI notification.