New FEMA Export-Import Rules 2026: A Simple Guide for Businesses
If your business buys from or sells to companies overseas, a big rulebook change is coming. The Reserve Bank of India has replaced the old foreign exchange rules for exports and imports with a brand-new set of regulations — cutting through 167 separate circulars that businesses and banks had to juggle before. The new rules start from 1 October 2026. Here's what's actually changing, explained simply.
Why the Rules Changed
For years, anyone exporting or importing goods had to follow one set of rules, while there was barely any clear rulebook for exporting services — even though India's services exports (think IT, consulting, and freelance work) have grown into a massive part of the economy. On top of that, different banks sometimes interpreted the old rules differently, causing confusion for businesses.
The new regulations bring goods, services, and even software exports and imports under one single, simplified rulebook. The bigger shift behind the scenes: instead of relying on paperwork and manual checks, monitoring now happens through online systems in near real-time.
Old Rules vs New Rules, at a Glance
| What It Covers | Old Rule (2015) | New Rule (2026) |
|---|---|---|
| Goods and services | Covered under separate rules | One combined rulebook for both |
| Filing for service exports | No clear filing requirement | Must file a form (EDF) within 30 days of invoicing |
| Small transactions | Full paperwork required | Simple self-declaration for amounts up to ₹10 lakh |
| Time to receive export payment | 9 months | 15 months (18 months if billed in Rupees) |
| Time to pay for imports | Fixed 6 months | Whatever is agreed in the contract |
| Who decides on extensions | Centrally, by RBI circulars | Your own bank, based on its internal policy |
More Time to Receive Export Payments
If you're exporting, you now get 15 months to receive payment from your foreign buyer — up from just 9 months before. And if the deal is invoiced and settled in Indian Rupees rather than a foreign currency, you get even more breathing room: 18 months.
No More Fixed Deadline for Import Payments
Previously, importers had a strict 6-month window to pay their overseas suppliers. That fixed rule is gone. Now, you simply pay according to whatever terms you've agreed in your contract with the supplier — whether that's 30 days, 90 days, or a year, as long as it's a genuine commercial arrangement.
This gives businesses real room to negotiate better credit terms directly with suppliers, instead of being boxed in by a one-size-fits-all rule.
New Filing for Businesses That Export Services
If your business exports services rather than physical goods — software development, consulting, design, freelance work, and similar — there's a new requirement: filing an Export Declaration Form (EDF) within 30 days of the month you raised your invoice. This is new; service exporters weren't required to file anything like this before. It brings services in line with how goods exports have always been tracked.
Easier Rules for Small Transactions
For any export or import deal worth up to ₹10 lakh, you no longer need detailed paperwork or bank sign-off to close it out. A simple self-declaration is enough. This is a genuine relief for smaller businesses and anyone dealing in frequent, low-value international transactions.
Your Bank Now Has More Say
Previously, decisions on extensions, write-offs, and exceptions were largely made centrally, following RBI circulars. Now, your bank (known as an Authorised Dealer, or AD Bank) makes these calls itself, guided by its own internal, board-approved policy. This can mean quicker turnarounds — but it also means two businesses at two different banks might get slightly different treatment on the same type of request.
Banks are also required to update their systems faster than before, so any delay in payments will show up and get flagged sooner than it used to.
What You Should Do Before October 2026
- Check with your bank on any pending export or import entries and close out eligible small-value transactions under the new simplified process.
- Review contracts with your overseas suppliers and buyers, especially around payment timelines, since these terms now matter more directly.
- Ask your bank about its new internal policy on extensions and exceptions, so you know what to expect.
- If you export services, start preparing to file the EDF regularly — this is likely new for your business.
- Flag any overdue payments from buyers now, before the stricter monitoring kicks in.
If you'd like help reviewing your contracts or setting up compliant processes ahead of the deadline, our FEMA & FDI compliance team can walk you through it. This also connects closely with routine monthly accounting and compliance support, and with broader statutory and regulatory compliance we handle for growing businesses.
You can read the official notification directly on the RBI website.
Frequently Asked Questions
When do the new FEMA export-import rules start?
The new rules were announced by the RBI on 13 January 2026 and come into effect from 1 October 2026. They replace the older 2015 export rules and related guidance.
How much time do I now have to receive payment for an export?
You now have 15 months to receive payment from a foreign buyer, up from 9 months earlier. If the deal is billed and paid in Indian Rupees, you get even longer — 18 months.
Is there still a fixed deadline for paying for imports?
No. Earlier, importers had a fixed 6-month deadline to pay overseas suppliers. That fixed deadline is gone. Now, payment simply needs to follow whatever terms are written into the contract with the supplier.
Do businesses that export services (not just goods) have new paperwork to file?
Yes. For the first time, businesses exporting services — IT companies, consultants, freelancers, agencies — must file a form called the Export Declaration Form (EDF) within 30 days of the month in which they raised the invoice.
What if my export or import deal is small in value?
If the transaction is worth up to ₹10 lakh, you can close it out with a simple self-declaration — no need for the detailed paperwork and bank approval that was required before.
What happens if a foreign buyer doesn't pay on time?
If payment isn't received within a year of the due date, you can only continue exporting to that buyer if they pay in full in advance, or provide an irrevocable letter of credit — unless your bank grants a specific extension.
Who decides on extensions and exceptions now — RBI or my bank?
Your bank. Decisions that used to be centralised with the RBI are now handled by Authorised Dealer (AD) Banks, based on their own internal, board-approved policies. This can mean faster decisions, but standards may vary somewhat between banks.
What should I do before 1 October 2026?
Check any pending export or import paperwork with your bank, review your contracts with foreign suppliers and buyers, ask your bank about its updated internal policies, and if you export services, start preparing to file the EDF regularly.
Getting Ready for the New FEMA Rules?
Our team helps businesses review contracts, bank processes, and filings ahead of regulatory changes like this one.
Talk to Our Team
Rohit Lohade is a Chartered Accountant and India entry specialist at KRPR & Associates. With 15+ years of experience, he has assisted 250+ international companies — including global brands — incorporate and operate in India. He currently serves as Resident Director for multiple foreign-owned Indian subsidiaries.