The Reserve Bank of India has, on January 13, 2026, notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, replacing the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015, last amended in November 2025. The regulation, effective from October 01, 2026, promotes ease of doing business and empowers authorised dealers (AD) to provide quicker and more efficient service to their customers.
Key Changes -:
Under Regulation 10, advance receipts for exports and advance payments for imports shall be routed through the same Authorised Dealer, subject to permitted change with intimation. Authorised Dealers may permit advance remittance for imports and may require standby letters of credit or guarantees. Interest on export advances or delayed import payments shall not exceed the trade credit all-in-cost ceiling.
Regulation 12 requires repatriation of import advances where imports do not materialise; failure triggers mandatory standby LC or bank guarantee for future advances. Under Regulation 13, where export proceeds remain unrealised beyond one year from the due date or extended period, further exports shall be only against advance payment or irrevocable LC.
Regulation 16 provides that the period between outward and inward remittances shall not exceed six months, subject to extension by the Authorised Dealer. Remittances shall be between the overseas seller and buyer, subject to permitted third-party arrangements. Authorised Dealers shall ensure EDPMS/IDPMS closure for both legs and monitor completion.
Under Regulation 15, Authorised Dealers may permit receipts and payments for project exports as per the underlying contract. Project exporters may deploy temporary overseas cash surplus in short-term instruments, subject to monitoring by the Authorised Dealer.
Regulation 17 provides that Authorised Dealers shall be guided by the extant RBI framework and instructions on international trade invoicing and settlement in Indian Rupees.
Regulation 19 requires Authorised Dealers to maintain a comprehensive internal policy and SOP covering documentation, timelines, charges, extensions, adjustment of export proceeds, advance payments and delegation of powers. Policies must include escalation and appeal mechanisms and be disclosed on the AD’s website.
Navigating India's Foreign Exchange Management Regulations (FEMA) can be complex. The ODFC FEMA Helpdesk Services specializes in guiding businesses through these regulations, offering expert advice on advance remittances, guarantees, and compliance to avoid penalties. Whether you're an exporter receiving advances or an importer making payments ahead, our services ensure seamless adherence to RBI guidelines.
⭕ ODFC FEMA Helpdesk (INDIA)
📩 Email: ask@fema.in
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