Sun Jan 18 01:50:00 UTC 2026: # RBI Streamlines Foreign Exchange Management Regulations

The Story

The Reserve Bank of India (RBI) has announced the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, replacing the 2015 Goods and Services Export Regulations. These new regulations, effective from October 1, 2026, aim to streamline processes related to the export and import of goods and services, including software, and strengthen the monitoring of foreign exchange transactions. The regulations have been issued under the Foreign Exchange Management Act, 1999.

Under the new framework, exporters of goods and services will be required to submit an Export Declaration Form (EDF) to the designated authority. The regulations also specify a 15-month timeframe for the realization and repatriation of export proceeds, which can be extended by authorized dealers based on valid reasons. For transactions conducted in Indian Rupees, the period will be 18 months. The regulations also permit the adjustment of export receipts against amounts payable for imports and third-party payments after proper verification. Authorized dealers are instructed to implement comprehensive internal policies and standard operating procedures for managing export, import, and trade transactions to enhance transparency.

Key Points

  • The RBI has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026.
  • These regulations replace the 2015 Goods and Services Export Regulations.
  • The new regulations will take effect on October 1, 2026.
  • Exporters must submit an Export Declaration Form (EDF).
  • The timeframe for export realization and repatriation is 15 months (extendable), or 18 months for transactions in Indian Rupees.
  • Adjustment of export receipts against import payments and third-party payments are permitted, subject to verification.
  • Authorized dealers are required to implement comprehensive internal policies and procedures.

Key Takeaways

  • The RBI is actively updating regulations to streamline foreign exchange management.
  • The focus is on improving transparency and accountability in export and import transactions.
  • The new regulations provide clarity on timelines for export realization and repatriation, offering flexibility while maintaining control.
  • Emphasis is put on authorized dealer’s responsibilities for managing forex transactions through policy implementation.
  • The move likely aims to bolster India’s foreign trade and strengthen its position in the global economy.

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