The Reserve Bank of India (RBI) recently announced changes to some FEMA rules for businesses involved in international trade, effective October 1, 2026. It will mainly cover export payments, exporters on the Caution List, and older trade transactions.
Under the revised FEMA Regulation 5, exporters generally now have 9 months to realise and bring export earnings back to India, down from 15 months. For exports invoiced or settled in Indian rupees, the period is currently reduced to 12 months from 18 months. These rules also cover exporters who were already on the RBI Caution List as of September 30, 2026. They will continue to follow the RBI orders already applicable to them until they are removed from the list.
The RBI has also introduced Regulation 20, which gives Authorised Dealers more power to deal with certain older transactions. This includes some export, import, service, and merchanting trade transactions carried out before October 1, 2026, where RBI approval was required under the earlier rules. This change does not remove RBI approval requirements for all new transactions after that.
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Businesses should now review their pending export and import transactions and revise their compliance processes. Exporters should also adjust their payment tracking systems to meet the new deadlines. Companies with older transactions should speak with their Authorised Dealers to check whether the new rules allow those transactions to be handled without seeking separate RBI approval.
