The Reserve Bank of India has simplified FEMA reporting requirements for service exporters and importers, providing relief to resident individuals and introducing a ₹10 lakh threshold for specified transactions. The amendments, notified on November 2, 2026, take effect retrospectively from October 1, 2026, reducing documentation and reporting requirements for eligible transactions.
The Reserve Bank of India (RBI) has introduced significant changes to foreign exchange reporting requirements under the Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026, notified on November 2, 2026.
The amendments modify the principal regulations issued on January 13, 2026, and take effect retrospectively from October 1, 2026.
Simplified Export Declaration for Resident Individuals
Under the revised provisions, resident individuals exporting services will be deemed to have submitted the Export Declaration Form (EDF) once they provide the necessary payment-related information to their Authorised Dealer (AD) bank for crediting export proceeds to their account.
Importantly, no monetary ceiling has been prescribed for resident individual service exporters under this simplified mechanism.
₹10 Lakh Threshold for Other Service Exporters
For exporters other than resident individuals, including companies and other entities, the simplified EDF mechanism will apply where the inward remittance for the exported service does not exceed ₹10 lakh or its equivalent in foreign currency.
Such exporters will be considered to have submitted the EDF upon providing the prescribed payment information to their Authorised Dealer bank.
Relaxation in Reporting of Service Imports
The RBI has also amended Regulation 18 concerning the Import Data Processing and Monitoring System (IDPMS).
Under the revised framework, Authorised Dealer banks are required to enter service import details into IDPMS where the importer is not a resident individual and the invoice or contract value exceeds ₹10 lakh.
The reporting must be completed within five working days of receiving the relevant details from the importer.
Consequently, the specified IDPMS reporting requirement does not apply to service imports by resident individuals or to qualifying transactions of other importers valued at ₹10 lakh or below.
Relief for Freelancers, Businesses and Service Providers
The changes are particularly relevant to freelancers, consultants, professionals, small businesses, exporters of services and entities making overseas service payments.
By simplifying EDF submissions and limiting IDPMS reporting requirements, the amendments are intended to reduce procedural compliance while retaining the applicable FEMA obligations governing foreign exchange transactions.
Source: CA Sansaar