New RBI FEMA export rules effective 1 October 2026 mandate 9-month realisation of export proceeds, with 12 months for INR-denominated exports and AD Bank extension powers.
FEMA Export Rules Revised: 9-Month Realisation Deadline
The Reserve Bank of India has revised foreign exchange regulations for exporters, effective 1 October 2026, under the Foreign Exchange Management Act (FEMA). Exporters must now realise export proceeds within nine months from the date of shipment, shortened from the earlier 12-month window.
Exceptions are provided for exports invoiced in Indian Rupees (INR), which now have a 12-month realisation period, reflecting operational complexities in cross-border INR transactions. Authorised Dealer (AD) banks may grant extensions beyond these periods under exceptional circumstances, subject to documentation and justification.
Compliance timelines under the revised regime necessitate tighter monitoring of shipment and receipt cycles. Exporters and their legal advisors must ensure adherence to the updated realisation norms to avoid penalties under FEMA Section 13, particularly given the increased scrutiny on external commercial realisations.
