The Reserve Bank of India issued a second amendment to its Foreign Exchange Management regulations for exports and imports of goods and services, dated 2 November and published in its notifications register on 3 November. The amendment states that its changes take effect from 1 October 2026. That retrospective commencement should not be confused with the date the notification became public, and operational systems may need to account for transactions processed in the intervening period.[1]
The most direct simplification concerns a resident individual exporting services. The individual is deemed to have submitted the Export Declaration Form when the required information about receipt of the service payment is provided to the authorised dealer bank for credit to the exporter’s account. This is a deemed-filing mechanism, not an exemption from all foreign-exchange laws or anti-money-laundering obligations.[1]
For other service exporters, the notification applies a similar simplified treatment where the inward remittance is no more than ₹10 lakh or the foreign-currency equivalent. The bank, rather than a broker offering a market quotation, is the relevant authorised dealer in the reporting process. The amount is a transaction threshold for specified compliance reporting, not an annual tax-free export allowance.[1]
Which reporting steps change
| Measure or condition | Verified scope |
|---|---|
| Notification | FEMA 23(R)/(2)/2026-RB |
| Notified | 2 November 2026 |
| Effective from | 1 October 2026 |
| Resident individual service exports | EDF deemed filed when prescribed receipt information given to AD bank |
| Other exporters | Simplified treatment for service remittances up to ₹10 lakh |
| Service import IDPMS | Entry for qualifying non-individual imports exceeding ₹10 lakh |
On the import side, the change narrows what authorised dealers must enter into the Import Data Processing and Monitoring System. For service importers who are not resident individuals, entries are required where invoice or contract value exceeds ₹10 lakh. The underlying contract size is the reference, rather than an assumption that any business can escape reporting simply by splitting remittances into smaller amounts.[1]
Cross-border payment firms and corporate FX desks may benefit from lower documentary friction for eligible service transactions. They must still match the customer’s status, purpose of payment, remittance amount and applicable restrictions. A reduction in one specific declaration requirement cannot be used to justify bypassing sanctions screening, know-your-customer checks or the bank’s normal controls.[1]
The confirmed change is a defined amendment with a 1 October effective date and an identifiable ₹10 lakh threshold. Brokers explaining it to clients should distinguish service flows from goods exports and other FEMA categories, and should not describe it as a blanket deregulation of foreign-exchange dealing.[1]
Sources & further reading
- Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations 2026 Reserve Bank of India · 2 Nov 2026 · Accessed 5 Nov 2026