left arrow Oct 27, 2026

RBI Reduces Time Period for Realisation of Export Proceeds and Empowers AD Banks

The Reserve Bank of India (‘RBI’) had notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 on January 13, 2026 (‘EIGS Regulations’), in supersession of the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 (‘2015 Regulations’), setting out the framework for export and import of goods and services under the Foreign Exchange Management Act, 1999, with effect from October 1, 2026. Pursuant to the EIGS Regulations, the full export value of goods and services is to be realised and repatriated within 15 months from the date of shipment (for goods) or the date of invoice (for services), and within 18 months where the exports were invoiced and/or settled in Indian rupees.

Subsequently, the RBI has, by way of the Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026 dated September 22, 2026, which came into force on October 1, 2026, reduced the period for realisation and repatriation of export proceeds from 15 months to nine months, and from 18 months to 12 months for exports invoiced and/or settled in Indian rupees. Further, exporters on the caution list as on September 30, 2026, under orders issued by the RBI under the 2015 Regulations, will continue to be governed by such orders until they are removed from the caution list.

Pursuant to the amendment, authorised dealer banks (AD Banks)  have also been empowered to handle transactions relating to export and import of goods and services, as well as merchanting trade, undertaken prior to October 1, 2026, which hitherto required the approval of the RBI under the 2015 Regulations and the relevant Master Directions on export and import of goods and services.

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