The RBI has issued the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 dated January 13, 2026 (‘EXIM Regulations’) and Directions on Export and Import of Goods and Services dated January 16, 2026 (‘EXIM Directions’), which will be in force from October 1, 2026. Following changes in the regulatory framework have been brought about:

i.     The EXIM Regulations and EXIM Directions consolidate the entire export and import regulatory framework and once effective, will supersede the Master Direction – Export of Goods and Services, 2015, Master Direction – Import of Goods and Services, 2016 as well as 167 RBI Circulars relating to import and export;

ii.     The time period for realisation and repatriation of full export value for export of goods and services invoiced and/or settled in Indian Rupees has been extended from 15 months to 18 months. Further, the earlier six-month timeline for making import payments has been removed and would now need to be aligned with the underlying contract;

iii.   Where the export proceeds remain unrealised beyond one year from the due date of realisation, or any extended period granted by the AD bank, the exporter may undertake future exports only against full advance payment or an irrevocable letter of credit;

iv.    ADs may allow reduction in realisation of export value on request. The erstwhile regulations permitted reductions only up to 25% without percentage ceiling for established exporters meeting track record conditions, and required board ratification for reductions exceeding 25%. The 2026 Regulations adopt a more flexible, discretion-based approach in this regard;

v.   Under the current regime, the ADs may allow advance payments for imports in excess of USD 200,000 only, subject to a standby letter of credit or bank guarantee. Under the EXIM Regulations, this USD 200,000 limit has been replaced with such limit as may be determined and prescribed by the ADs; and

vi.   ADs are now required to maintain documented internal policies and standard operating procedures for export/import transactions, prohibits levy of charges for regulatory delays on constituents, and requires website disclosure.