The Reserve Bank of India has changed rules governing India’s export and import transactions, with the new framework coming into effect from October 1.

One of the key changes is that exporters will now have nine months, instead of 15 months, to realise and repatriate export proceeds.

For exports of goods, the nine-month period will be counted from the date of shipment, while for services it will be counted from the date of invoice. For goods exported to an overseas warehouse, the period will be counted from the date of sale of the goods from the warehouse.

For exports invoiced or settled in Indian rupees, the deadline has been reduced to 12 months from 18 months.

However, authorised dealer banks can extend the deadline if an exporter requests additional time and gives reasons that the bank finds satisfactory. Service exports to come under formal reportingThe new rules also introduce a formal Export Declaration Form requirement for exports of services.

Under the 2026 regulations, service exporters will have to submit an EDF within 30 days from the end of the month in which the invoice is raised. An exporter can submit one EDF covering multiple service exports made to different recipients during a month.

Makarand M Joshi, Founder Partner, MMJC & Associates, said this will increase reporting and monitoring of service exports by authorised dealer banks.“While service exports were already subject to FEMA requirements on realisation and repatriation of export proceeds, service exports did not require a specific export declaration. From October 1, these transactions will also come within a formal reporting framework, significantly increasing regulatory visibility over India’s services exports,” Joshi said.

He added that the role of AD banks will become more important for exporters when payments are delayed.“With prolonged unrealised export receivables capable of restricting future exports, an AD bank’s approach to extensions, regularisation and monitoring will become commercially critical,” Joshi said.

Import payment rules changedThe RBI has also changed the way the timeline for import payments is handled. Under the new rules, AD banks will monitor import payments based on the payment period specified in the underlying commercial contract. The bank can allow an extension beyond that period if the importer requests it and provides reasons that the bank considers satisfactory.

Joshi said the change gives businesses more flexibility to structure import payments according to their commercial agreements.“India imported about $775 billion of merchandise in FY 2025-26. Against that scale, the October 1 FEMA changes are significant because import payment compliance will increasingly recognise the commercial period agreed between the Indian buyer and overseas supplier rather than operate only through a uniform regulatory clock,” he said.“This is genuine ease of doing business, FEMA is beginning to follow the economics of the transaction, instead of requiring commercial contracts to follow a regulatory timeline,” Joshi added.₹10 lakh transactions get simpler treatmentThe new regulations also provide simplified procedures for smaller export transactions.

For exports of goods or services of up to ₹10 lakh per shipping bill or invoice, an exporter can submit a declaration that the payment has been realised to facilitate closure of the transaction in the Export Data Processing and Monitoring System .For such transactions, reduction in the export value, including non-realisation of the full export value, can also be permitted based on an exporter’s declaration, subject to the applicable conditions.