RBI issues Export and Import Regulations, 2026

 Here is a summary of the important changes introduced by the RBI's Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026:

Effective Date: 1 October 2026

Core Objective: To consolidate and modernize India's cross-border trade framework by unifying rules for goods, services, and software, simplifying compliance, and enhancing ease of doing business.

Key Changes:

1. Payment & Realization Timelines:

   • Imports: The previous standard 6-month payment timeline is removed. Payment terms must now align with the agreed contractual terms.

   • Exports: The 15-month realization period (from shipment/invoice date) remains.

   • INR Settlements: The realization period for exports invoiced/settled in Indian Rupees is extended to 18 months.

2. Consequences for Delayed Export Receipts:

   • If export proceeds remain unrealized for more than one year past the due date (including extensions), the exporter can only undertake future exports against 100% advance payment or an irrevocable Letter of Credit (LC).

3. Advance & Delayed Payments:

   • The fixed USD 200,000 limit for import advance payments is replaced. Authorized Dealer (AD) Banks will now prescribe limits, beyond which a standby LC or bank guarantee may be required.

   • The "all-in-cost" ceiling from External Commercial Borrowing (ECB) guidelines now applies to interest on export advances or delayed import payments.

4. Unadjusted Import Advances:

   • If an import is not completed within the contract period, the advance must be repatriated.

   • Failure to repatriate may result in future advance import payments being allowed only against an unconditional LC or bank guarantee.

5. Reduction in Export Invoice Value:

   • AD Banks are authorized to permit reductions in realized export value due to under/non-realization, based on transaction bona fides and documentation.

   • For invoices up to INR 10 lakh, a reduction can be allowed based on the exporter's self-declaration.

6. Expanded Set-Off Flexibility:

   • Export receivables for goods can now be set off against import payables for services, and vice versa.

7. Import of Gold & Silver:

   • Advance remittance is prohibited for importing gold and silver.

   • The 90-day credit period restriction on suppliers'/buyers' credit and LC usance for gold imports is relaxed.

8. Merchanting Trade Transactions (MTT):

   • The previous 9-month completion timeline is removed.

   • The key rule remains: the maximum gap between outward and inward remittances must not exceed 6 months.

   • Third-party payments/receipts are now permissible, subject to AD Bank approval.

9. Uniform Reporting (Export Declaration Form - EDF):

   • A single consolidated EDF replaces separate forms for goods, services, and software (e.g., SOFTEX form).

   • Submission timelines vary: for services/software, one monthly EDF is due within 30 days of the invoice month's end.

10. Delegation to AD Banks & SOPs:

    • Significant operational powers are delegated to AD Banks (e.g., approving extensions, reductions, set-offs, third-party transactions).

    • AD Banks must formulate Internal Policies and Standard Operating Procedures (SOPs) covering documented processes, timelines, and risk thresholds for various trade activities.

Overall Impact: The regulations represent a shift towards a more streamlined, principle-based, and digitally aligned framework. They reduce procedural complexity, delegate routine approvals to AD Banks, and aim to provide businesses with greater operational flexibility and predictability.