On 22 September 2026, the Reserve Bank of India (RBI) notified the Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026, reducing export proceeds realisation timelines and empowering Authorised Dealers to handle specified legacy export-import and merchanting trade transactions without requiring RBI approval.
The amendment will come into force from 1 October 2026.
Key Highlights:
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The amendment has been issued under Sections 7, 8, 10(6) and 47(2) of the Foreign Exchange Management Act, 1999 (FEMA), amending the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026.
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The regulations will come into force on 1 October 2026.
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The timelines prescribed under Regulation 5(1) for the realisation and repatriation of export proceeds have been shortened.
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For exports of goods and services, the period prescribed under Regulation 5(1)(a) and (b) for the realisation and repatriation of export proceeds has been reduced from 15 months to 9 months.
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For exports invoiced and/or settled in Indian Rupees, the period prescribed under the first proviso to Regulation 5(1) for the realisation and repatriation of export proceeds has been reduced from 18 months to 12 months.
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Exporters appearing in the Caution List as on 30 September 2026 will continue to be governed by the orders issued under Regulation 16 of the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015, until their names are removed from the list.
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A new Regulation 20 has been inserted empowering Authorised Dealers (ADs) to handle transactions relating to exports, imports and merchanting trade undertaken before 1 October 2026, which previously required RBI approval.
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The amendment shifts the handling of specified legacy export-import and merchanting trade transactions from direct RBI approval to Authorised Dealers, thereby facilitating operational efficiency and expediting transaction processing.
[Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026, dated 22-09-2026]
