RBI revises import payment norms effective October 2026: contract-based settlements, IDPMS thresholds, advance payments, and GST alignment.
The Reserve Bank of India has issued comprehensive guidelines on import payments effective 1 October 2026, introducing a contract-based framework for foreign exchange disbursements, revising thresholds under the Importer-Exporter Parallel Monitoring System (IDPMS), and aligning compliance with GST and TDS regimes.
Key Regulatory Changes
- All imports exceeding $50,000 must be backed by a written contract or proforma invoice registered in the Entity Master on the FIRMS portal.
- IDPMS scrutiny will trigger automatically for transactions above ₹10 lakh, with mandatory justification for repeated high-value payments to same beneficiary.
- Advance payments beyond 15% of contract value require bank guarantee or letter of credit.
- Buyers must reconcile import invoices with GSTN data within 60 days to validate forex usage.
Integration with Tax and Reporting Systems
Authorised Dealers are required to cross-verify Form A2 filings with FC-GPR submissions and file annual Foreign Liabilities and Assets (FLA) returns. TDS under Section 195 must be certified prior to remittance approval. The framework aims to prevent over-invoicing and round-tripping through trade channels.
These measures strengthen the 'know your transaction' mandate and close gaps between exchange control, tax reporting and trade compliance.
Citations
- FEMA (Export and Import) Regulations, 2026, Notification No. FEMA/ID/2026
