Reserve Bank of India to overhaul export and import regulations

The Reserve Bank of India is implementing a significant overhaul of its foreign exchange framework for exports and imports, effective October 1, 2026. The new Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, aim to simplify compliance and increase flexibility for businesses by granting Authorised Dealer (AD) banks a larger role in administration.

Key changes include the introduction of a Unified Export Declaration Framework. Exporters of goods and services will transition to using the Export Declaration Form (EDF). For services, the EDF is generally required within 30 days of the month in which the invoice is raised, though AD banks may extend this period under certain conditions.

Regulatory amendments also include adjustments to realization timelines. Specifically, certain periods previously set at fifteen months will be reduced to nine months, and eighteen-month periods will be reduced to twelve months. The new framework also consolidates the treatment of exports for goods, services, and software, impacting merchanting trade, third-party payments, and import advances.