RBI Notification for the Foreign Exchange Management : Sriya Enterprise

January 16, 2026
FEMA
6 minute read

RBI notification for the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, published in the Gazette of India on January 13, 2026, superseding the 2015 version and effective from October 1, 2026.

New FEMA Export-Import Regulations 2026 – Key Updates for Exporters and Importers

The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 were notified by the Reserve Bank of India (RBI) via Gazette Notification No. FEMA. 23(R)/2026-RB dated January 13, 2026. These regulations supersede the previous 2015 version (FEMA 23(R)/2015-RB) and come into effect from October 1, 2026.

This is a major update for Indian exporters and importers, aimed at simplifying compliance, strengthening monitoring through systems like EDPMS/IDPMS, providing flexibility in certain areas, and aligning with ease of doing business objectives while ensuring timely realization of export proceeds and proper handling of import payments.

Major Changes

Key Highlights for Exporters and Importers

1. Export Declaration (EDF) Requirements- EDPMS/ISPMS reporting

Key Responsibilities of Authorized Dealer Banks

AD banks must ensure timely and accurate reporting to enable RBI’s effective monitoring of export/import transactions.

Entry of EDF details:

From non-EDI ports (goods): Enter customer EDF details in EDPMS within 5 working days of receipt.
For services (including software): Enter exporter-submitted EDF details in EDPMS within 5 working days of receipt.

Entry of import details:

From non-EDI ports: Enter customer import document details in IDPMS within 5 working days of receipt.
For import of services: Enter importer-declared/submitted details in IDPMS within 5 working days of receipt.

Remittances reporting: Enter all inward and outward remittances related to exports, imports, and Merchanting Trade Transactions (MTT) in the relevant system (EDPMS and/or IDPMS).

Monitoring and follow-up: Continuously monitor all transactions in EDPMS/IDPMS to identify and close outstanding entries. Follow up with exporters, importers, or MTT participants to obtain required documents for closure/mark-off.

Download EDF Form

A one view

Transaction	System	Closure (≤₹10 Lakh)
Goods Exports	EDPMS	Exporter declaration
Service Exports	EDPMS	Exporter declaration
Goods Imports	IDPMS	Importer declaration
Service Imports	IDPMS	Importer declaration
Merchanting Trade (MTT)	EDPMS + IDPMS	Both legs completed

2. Realization and Repatriation Timeline (Regulation 5)

This is one of the most important changes for exporters:

Goods (excluding consignments to overseas warehouses): 15 months from shipment date.
Services: 15 months from invoice date.
Overseas warehouse consignments: 15 months from date of sale from warehouse.
Project exports: As per contract payment terms.
If invoiced/settled in Indian Rupees (INR): Extended to 18 months.
For small value transactions (up to ₹10 lakh or equivalent per Shipping Bill/Invoice), realization can be closed in EDPMS based on exporter’s declaration (or quarterly bulk declarations)

Need clarity on FEMA 2026? Contact us for expert EDPMS/IDPMS and FEMA compliance support.

3. Reduction in Export Realization (Write-offs)

AD banks can allow short realization or non-realization if satisfied with reasons. For transactions ≤ ₹10 lakh, allowed on exporter’s declaration alone.

4. No advance remittance allowed for import of gold/silver without specific RBI approval.

5. Merchanting Trade Transactions (MTT) (Regulation 16)

Inward and outward remittances gap ≤ 6 months (extensions possible).
Payments only to/from genuine overseas seller/buyer (third-party allowed on merit).
AD banks monitor both legs and update EDPMS/IDPMS.

6. Other Important Provisions

Unrealized exports beyond 1 year (after extension): Future exports only against 100% advance or irrevocable LC.
Non-realized import advances: Repatriation required; if not, future advances may need standby LC/guarantee.
Project exports: Flexibility for temporary surplus funds investment overseas under AD monitoring.
INR invoicing/settlement for international trade: Follow existing broad framework and RBI instructions.

Why This Matters for Your Business?

These regulations balance ease of doing business with stricter monitoring. Exporters benefit from simplified EDFs and extensions, while importers gain payment flexibility. However, EDPMS/IDPMS non-compliance risks blocked remittances and RBI penalties.

Sriya Enterprise – Your FEMA 2026 Compliance Partner

20+ years in trade finance | Surat-based expertise serving exporters/importers across India

Our Services:

EDF Filing & EDPMS/IDPMS Management
Realization Tracking & AD Coordination
MTT Documentation & Compliance Audits
Write-off & Extension Applications
Customized FEMA Training for Teams

At Sriya Enterprise, we help exporters and importers navigate FEMA compliance, documentation, realization follow-up, and AD bank coordination for smooth cross-border trade. Contact us for guidance on how these 2026 regulations impact your specific operations!

Frequently Asked Questions

What are the FEMA Export and Import Regulations, 2026?

The FEMA Export and Import Regulations, 2026 are updated RBI rules governing foreign exchange transactions related to exports, imports, and merchanting trade. These regulations replace the 2015 framework and become effective from 1 October 2026.

What is the new export realization timeline under FEMA 2026?

Under FEMA 2026, export proceeds must generally be realized within 15 months from the shipment or invoice date. For INR-invoiced exports, the timeline is extended to 18 months, subject to RBI conditions.

How do EDPMS and IDPMS impact exporters and importers?

EDPMS and IDPMS are RBI systems that track export and import transactions in real time. Any delay in reporting, realization, or closure can lead to blocked remittances, caution listing, or future trade restrictions.

Are small export transactions treated differently under the new rules?

Yes. For exports up to ₹10 lakh per shipping bill or invoice, closure in EDPMS can be done based on exporter declaration, including quarterly bulk declarations, reducing compliance burden.

What are the key compliance responsibilities of Authorized Dealer (AD) banks?

AD banks must ensure timely entry of export/import documents, report remittances, monitor outstanding transactions, and follow up with exporters or importers for EDPMS/IDPMS closures.

Conclusion

The FEMA Export and Import Regulations, 2026 represent a significant shift toward streamlined compliance, stronger digital monitoring, and improved ease of doing business—while maintaining strict oversight of foreign exchange flows. Extended realization timelines, simplified EDF procedures, and enhanced EDPMS/IDPMS tracking bring flexibility, but also demand higher compliance discipline from exporters and importers.

With real-time systems now flagging delays and discrepancies automatically, proactive compliance is no longer optional. Businesses that adapt early, maintain accurate reporting, and coordinate closely with Authorized Dealer banks will benefit from smoother cross-border operations and reduced regulatory risk.

Understanding these changes and implementing them correctly is essential for protecting cash flows, avoiding penalties, and sustaining international trade growth in the evolving regulatory environment.