Recalibrated Forex Trade Framework

The Reserve Bank of India (RBI), exercising its powers under the Foreign Exchange Management Act, 1999 (FEMA), has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 vide Notification No. FEMA 23(R)/2026-RB dated 13 January 2026, superseding the erstwhile 2015 Regulations. The new framework consolidates the regulation of exports and imports of both goods and services, including software and merchanting trade transactions, into a single, unified regime aimed at rationalising and streamlining foreign exchange compliance. Key changes include mandatory filing of the Export Declaration Form (EDF) for exports of goods and services, extension of export realisation timelines to 15 months (and 18 months for INR-denominated transactions), self-declaration-based closure of EDPMS and IDPMS entries up to INR 10 lakh, and express permission for set-off of export receivables against import payables and third-party receipts and payments, subject to bank verification. With the Regulations coming into force from 1 October 2026, exporters and importers are afforded a transition period to reassess operational processes, align documentation and contracts, and prepare for compliance under the restructured FEMA framework.