Bengaluru, October 2, 2026: New export-import rules under the Foreign Exchange Management Act (FEMA) came into force on October 1. The changes shorten the time exporters have to bring back their foreign earnings and give banks more power to settle certain older trade transactions. For exporters, importers and finance teams, it is time to update compliance calendars.
What has changed?
The Reserve Bank of India (RBI) notified the Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026 on September 22. They took effect on October 1 and amend the new consolidated export-import regulations, which replace the 2015 export rules. Three changes stand out.
1. Shorter time to realise export proceeds
Under the amended Regulation 5, the general period for realising and repatriating export proceeds is now nine months, down from 15 months. For exports invoiced or settled in Indian rupees, the period is 12 months, down from 18 months.
The clock starts at different points depending on the export:
- Goods: from the date of shipment
- Services: from the date of invoice
- Goods sent to an overseas warehouse: from the date of sale from the warehouse
Consider an illustrative case. An exporter ships goods on January 15. Under the nine-month limit, the payment must be realised and brought back to India by about October 15. Under the earlier 15-month limit, the same exporter would have had until around April of the following year. Delays in buyer payments now leave far less room for error.
2. Banks can handle certain legacy transactions
A new Regulation 20 empowers Authorised Dealer (AD) banks to handle export, import and merchanting trade transactions undertaken before October 1, 2026 that earlier required RBI approval. Businesses with older pending cases should ask their bank whether their transaction now falls under this provision.
The provision is limited to specified legacy cases. It is not a blanket removal of RBI approval requirements for transactions undertaken on or after October 1.
3. Caution List exporters stay under existing orders
Exporters on the RBI’s Caution List as of September 30, 2026 remain governed by the orders already issued against them until they are removed from the list. The Caution List is a mechanism for closer oversight of exporters, particularly where proceeds remain unrealised beyond the prescribed period.
Part of a wider overhaul
The amendment sits within the broader FEMA 2026 export-import framework, which also took effect on October 1 and consolidates the rules for exports and imports of goods and services. Reports on the framework point to several other features:
- A simplified process for eligible small-value imports up to ₹10 lakh
- Import payment timelines linked to the underlying contract with the overseas seller
- More flexibility to set off export receivables against import payables
- Continued permission for third-party receipts and payments, subject to bank checks on genuineness
Why it matters for smaller exporters
Smaller exporters, who often depend on a handful of overseas buyers and operate with thinner cash buffers, may feel the tighter window most. A single delayed payment can now push a transaction past the limit sooner than before. Clear payment terms, regular follow-ups with buyers and early conversations with the bank become more important when the timeline is shorter.
What businesses should do now
- Exporters: Update receivables tracking and compliance calendars to the nine-month and 12-month limits.
- Companies with pending pre-October 1 cases: Ask your AD bank whether Regulation 20 applies.
- Caution List exporters: Keep following the existing RBI orders.
- Finance and trade teams: Review internal FEMA procedures and brief staff on the revised timelines.
Bottom line
For exporters, the key takeaway is simple: the clock on foreign payments now runs faster. Businesses that update their systems early will be better placed to avoid compliance trouble, while those with older pending cases may find the new bank powers useful.
This article is for general information and is not legal or financial advice. Businesses should confirm specifics with their Authorised Dealer bank or a qualified professional.
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