The Reserve Bank has undertaken a comprehensive review of the regulatory framework governing export and import of goods and services under the Foreign Exchange Management Act, 1999. This review was carried out in consultation with stakeholders, including authorised dealers, exporters, and importers, with a clear focus on reducing compliance friction and improving transaction efficiency.
Pursuant to this review, the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 have been notified. These Regulations consolidate, rationalise, and modernise the existing FEMA framework relating to cross-border trade in goods and services.
Objectives of the New Regulations
The 2026 Regulations are designed to:
- Promote ease of doing business, particularly for small exporters and importers
- Enable quicker decision-making and operational flexibility at the level of authorised dealers
- Improve regulatory clarity and consistency across export, import, and merchanting trade transactions
- Align FEMA compliance with current trade practices and digital processes
Scope and Applicability
The Regulations apply to all transactions relating to:
- Export of goods
- Import of goods
- Export and import of services
- Merchanting trade transactions
Authorised dealers must ensure that all such transactions comply with:
- The provisions of FEMA, 1999
- Rules, regulations, and directions issued under FEMA
- The prevailing Foreign Trade Policy notified by the Government of India
Key Obligations of Authorised Dealers
Under the new framework, authorised dealers are specifically directed to:
- Ensure full FEMA compliance while handling export and import transactions of goods and services
- Route all references and submissions to RBI exclusively through the PRAVAAH portal, strengthening digital governance and audit trails
- Report suspicious or doubtful transactions promptly to the Directorate of Enforcement, reinforcing enforcement coordination
- Exercise due diligence while processing merchanting trade transactions and complex cross-border structures
The Regulations place greater responsibility on authorised dealers, enabling faster service delivery while maintaining regulatory oversight.
Supersession of Existing Master Directions
With effect from 1 October 2026, the following shall stand superseded:
- Master Direction – Export of Goods and Services
- Master Direction – Import of Goods and Services
- Other circulars and instructions listed in the Annex to the circular
This marks a clean transition to a unified regulatory regime under the 2026 Regulations.
Communication to Exporters and Importers
Authorised dealers have been advised to bring the contents of the circular to the notice of their customers and constituents. Exporters, importers, and service providers should review their internal compliance processes well in advance of the effective date to align with the revised FEMA framework.
Statutory Authority
The directions have been issued under:
- Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999
The circular is without prejudice to any approvals or permissions required under other applicable laws, including customs, GST, or sector-specific regulations.
Effective Date and Way Forward
The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, along with the accompanying directions, will come into force from 1 October 2026.
The new framework is expected to bring greater procedural clarity, faster transaction handling, and improved regulatory confidence for businesses engaged in cross-border trade and services under FEMA.
Source: RBI FEMA Circular dated 16/01/2026