RBI FEMA Second Amendment 2026: Simpler EDF and IDPMS Rules for Service Exporters and Importers

If you export or import services from India, compliance paperwork under FEMA has long been a pain point, especially for freelancers, consultants and small businesses. On 2 November 2026, the Reserve Bank of India issued Notification No. FEMA 23(R)/(2)/2026-RB, the Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026. It amends the principal regulations (FEMA 23(R)/2026-RB dated 13 January 2026) and brings welcome relief on the Export Declaration Form (EDF) for services and on IDPMS reporting for service imports.

Key Highlights at a Glance

• The amendment is stated to be in force from 1 October 2026.
• A new definition of “resident individual” (a person resident in India who is a natural person) has been introduced.
• For Service exports by Resident Individual, EDF is deemed submitted when payment details are given to the Authorized Dealer (AD), subject to conditions based on who you are and the remittance value.
• AD entry in IDPMS for service Imports is now required only for importers who are non – individuals and where the invoice or contract value exceeds ₹10 lakh (or equivalent in foreign currency).
• The ₹10 lakh threshold is the dividing line for both export and import relief.

What Is a “Resident Individual”?

The amendment inserts a new clause defining a resident individual as a person resident in India who is a natural person. This matters because individuals now get a more relaxed regime than companies, firms, LLPs and other entities.

Service Exports: EDF Made Easier

Under Regulation 3(2), two new provisos clarify when an exporter of services is deemed to have submitted the EDF:

1. Resident individuals: The EDF is deemed submitted when you provide the information required in relation to receipt of payment to your Authorised Dealer for crediting your account. No separate EDF is needed, and there is no value cap stated for individuals.
2. Persons other than resident individuals (companies, partnership firms, LLPs and similar entities): The same deemed-submission applies if the inward remittance for the service is not more than ₹10 lakh (or equivalent in foreign currency).

In practice, a freelancer, consultant or small IT/BPO unit receiving modest foreign payments can now complete the process through the bank at the time of crediting the payment, instead of filing a separate EDF.

Note: For entities receiving remittances above ₹10 lakh, the deemed-submission relief does not apply under these provisos, so EDF compliance continues as per the principal regulations. The existing provisos have been renumbered (a), (b), (c) to (c), (d), (e).

Service Imports: IDPMS Reporting Narrowed

Regulation 18(1)(d) deals with the AD’s duty to enter service import details in IDPMS (Import Data Processing and Monitoring System). The amendment narrows it. The AD must enter import details in IDPMS as furnished by the importer, within five working days of receipt of details, only where:

• the importer is a person other than a resident individual, and
• the invoice or contract value is more than ₹10 lakh (or its equivalent in foreign currency).

Previously, the wording referred to details “as declared and submitted by the importer” within five working days of receipt of documents. The new text shifts the focus to details furnished by the importer and ties the requirement to the person type and value.

Quick Comparison

What Should You Do Now?

1. Are you a resident individual or a company/firm/LLP?
2. Is the remittance or invoice value above or below ₹10 lakh? Keep in mind that the threshold is tested per remittance for exports and per invoice or contract for imports.
3. Banks will issue their own operational instructions. Confirm how they want payment details furnished.
4. Since the amendment is stated to apply from 1 October 2026, check transactions from that date onward.
5. Contracts, invoices, FIRC/remittance advices and correspondence with your bank should be retained for audit and reconciliation.
6. Detailed procedures for EDPMS and IDPMS reporting may be issued separately.

Why This Matters?

This change reduces documentation for small and routine service transactions while keeping oversight on larger value ones. For India’s growing base of freelancers, consultants, IT and professional service providers, it lowers compliance cost and time. For larger exporters and importers, FEMA discipline, timely export and import reporting and reconciliation in EDPMS and IDPMS remain essential.

How Sriya Enterprise Can Help?

Whether you export services, import services or do both, Sriya Enterprise can help you:

• Understand how the FEMA Second Amendment applies to your business
• Set up the right documentation for inward and outward remittances
• Coordinate with your Authorised Dealer on EDF, EDPMS and IDPMS requirements
• Review past transactions for compliance

Contact Sriya Enterprise today for a initial consultation.

Disclaimer: This blog is for general information based on RBI Notification No. FEMA 23(R)/(2)/2026-RB dated 2 November 2026. It is not legal or professional advice. Please refer to the official notification and consult your Authorised Dealer or a qualified professional for your specific case.

Frequently Asked Questions

Conclusion

The RBI FEMA Second Amendment 2026 introduces important changes to EDF requirements for service exports and IDPMS reporting for service imports. By simplifying compliance for resident individuals and setting a ₹10 lakh threshold for specified non-individual transactions, the amendment aims to reduce documentation requirements for smaller service-related transactions.