Export - Import Regulations revamped by RBI - Effective 1st October 2026

 The Reserve Bank of India (RBI) has overhauled the Foreign Exchange Management (Export and Import of Goods and Services) Regulations with the objective of simplifying cross-border trade compliance and establishing a more facilitative export-import regulatory framework.

The key changes are tabulated below:

Particulars	Existing Regulations	Revised Regulations
Regulatory Framework	Export and import compliance governed through separate regulations and multiple operational instructions.	A single, integrated regulatory framework governing exports and imports of goods and services.
Time limit for realization of export proceeds	Realisation period generally 9–12 months, extended to 15 months through instructions; differentiated timelines for certain exporter categories.	Uniform realisation period of 15 months for exports; extended to 18 months for exports invoiced or settled in INR.
Time limit for import payments	Payments ordinarily required within 6 months of shipment, subject to category-specific variations	Import payment timelines aligned to contractual terms, with extensions granted by AD banks based on commercial justification.
Set-off of export receivables and import payables	Permitted in a restricted manner with multiple eligibility conditions	Expanded flexibility, including set-off across goods and services and group entities, subject to adherence to realisation timelines
Advance received against exports	Shipment of exports required within 3 years of receipt of advance	No time limit prescribed
Advance payments for imports	Bank guarantee or standby LC required where advance exceeded USD 200,000	No prescribed numeric threshold; safeguards determined by AD banks. Advance remittance prohibited for imports of gold and silver
Payment of interest on advance received for exports	Capped at 100 basis points above the LIBOR or any other benchmark rate	Interest aligned to the all-in-cost ceiling applicable to trade credit as per Borrowing and Lending Regulations
Rupee-denominated trade	Permitted through circular-based mechanisms without integration into core regulations	Formally embedded within the regulations; INR-settled exports allowed a 18-month realisation window
Reporting of exports	Through Form EDF for goods and Form SOFTEX for software exports. No form specified for reporting service exports	Unified form EDF for all exports of goods & services, including software
Third-party receipts and payments	Permitted selectively under stringent conditions	Permitted subject to AD bank satisfaction regarding documentation and transaction legitimacy
Non-realisation of export value	Detailed, rule-based framework with approval caps and categorisation	AD banks may permit reduction based on commercial assessment; exposures up to INR 10 lakh per invoice may be regularised on exporter declaration
Unadjusted import advances	Subject to monitoring and follow-up under existing IDPMS processes	Advances must be repatriated if imports do not materialise; failure may restrict future advances unless supported by BG/SBLC

The revised regulations are effective from 1^st October 2026.

The revised framework consolidates export and import regulations into a single, principle-driven regime that prioritises operational flexibility, digital reporting and commercial alignment over prescriptive procedural requirements.