Effective 1 October 2026, the RBI revised FEMA export regulations mandate a 9-month foreign exchange realisation period and 12 months for INR-denominated exports, with clarifications on Authorised Dealer Bank extensions and compliance obligations.
RBI Revises Export Realisation Timelines Under FEMA
The Reserve Bank of India (RBI) has notified amendments to the Foreign Exchange Management Act (FEMA) export regulations, effective from 1 October 2026. The revised rules stipulate that exporters must realise and repatriate foreign exchange proceeds within nine months from the date of export shipment. For exports invoiced and settled in Indian Rupees (INR), the realisation period is extended to twelve months.
Authorised Dealer (AD) banks may grant extensions beyond these timelines based on justified grounds, subject to prescribed conditions. The RBI has issued a compliance checklist requiring exporters to maintain documentation of shipments, realisation, and AD bank communications. Failure to comply may attract enforcement action under FEMA, 1999.
These changes aim to align India’s trade facilitation standards with global timelines while maintaining vigilance over forex inflows. Exporters and AD banks must review existing contracts and internal systems to ensure adherence by the effective date.
