Table of Contents
RBI New Rule 2026: The Reserve Bank of India has brought about a significant change in terms of compliance for businesses and individuals exporting services from India. Starting from October 1, 2026, exporters of services will have to furnish the Export Declaration Form (EDF) in respect of the total value of their exported services.
This provision has been made under the Foreign Exchange Management (FEMA) Regulations, 2026. These regulations have put the export of services on par with goods, software, and other services.
What Has Changed From October 1, 2026?
With the previous system, exporters were supposed to fill in the EDF form for their goods, and software exports were mostly taken care of by the SOFTEX procedure. Other than software exporters, service exporters did not have to fill in an export declaration. The situation has changed.
From October 1, 2026, an EDF declaration will be needed for services exported to foreign clients. The new system does away with SOFTEX and places software exports under the EDF procedure as well.
It means that consultants, professionals, IT firms, IT-enabled service firms, global capability centres, and freelance service providers exporting services to foreign clients may have to follow the new declaration procedure.
When Does the EDF Need to Be Filed?
These new rules require the exporter of services to submit the EDF within 30 days from the end of the month during which the invoice was issued.
This means:
- Invoice raised in October 2026: EDF due by November 30, 2026
- Invoice raised in November 2026: EDF due by December 30, 2026
- Invoice raised in December 2026: EDF due by January 30, 2027
In addition, the exporter can file a single EDF for all service exports to one or more beneficiaries for a particular month. Where the service is not software, the EDF can also be filed before receipt of payment. In case of a genuine reason, the Authorised Dealer can give an extension of time for filing the EDF.
Who Will Come Under the New EDF Requirement?
It does not restricted to only the big companies. It covers exporters of services in general. Thus, the companies and the professionals who get paid by the foreign clients for the services rendered need to check their compliance procedure. These can be IT companies, technology service providers, consultants and other service exporters.
There are some details that will be contained in the EDF that relate to the export transactions, which include the foreign client details, invoice details, currency details, amount, and other information.
What Is the Role of the Authorised Dealer Bank?
The Authorised Dealer (AD) Bank shall have a significant role in the new regime. The service export declaration shall be registered in the Export Data Processing and Monitoring System (EDPMS). As per the guidelines, the Authorised Dealer is supposed to file the details of the EDF in EDPMS once the declaration is received from the exporter.
Furthermore, the bank will monitor the realisation of export receipts and update the corresponding record in the EDPMS once the receipt is realised. Hence, the exporters will have to coordinate properly with their AD bank.
What Is the New Time Limit for Receiving Export Payments?
An additional feature of the new regime worth mentioning is the timeline of realisation and repatriation of proceeds from exports. After the new regulation was introduced in September 2026, the ordinary period of realisation of export proceeds was lowered to nine months after the date of issue of invoices.
For certain transactions made in Indian rupees, the period can be up to 12 months. In certain situations, an extension of the term can be provided by the Authorised Dealer upon reasoned application. Thus, timely monitoring of foreign receivables becomes of crucial importance for the exporters of services.
What Should Service Exporters Do Now?
As the new regulations have been introduced from October 1, 2026, it is essential for service exporters to evaluate their invoicing and foreign inward remittance processes. It is advised that businesses collaborate with their respective banks (Authorised Dealers) regarding the filing process of EDF and ensure that they have the required information in their invoicing and accounting system. Also, exporters should reconcile their export invoices, foreign inward remittances, EDF filings and EDPMS records on a regular basis.
RBI New Rule 2026: Why Is This Rule Important?
This new EDF has been seen as an important move with regard to the Indian service-export industry. Previously, there were service exporters who were exporting their services without any need for export declarations that were mandatory for goods and software exports.
The above changes will now lead to a more harmonised approach towards the issue of export declaration of services. It will also allow the banking system an easy way to monitor their exports and forex realisations.
The only difference that exporters dealing with international clients will notice is that of making an export declaration for FEMA compliance when raising a service invoice abroad.
Disclaimer: This article has been prepared using information available from publicly accessible internet sources, including official websites, government records, regulatory updates, and published reports, as available at the time of publication. DailyBusinessNews.in is an information-presenting platform and does not express any personal opinion, judgment, recommendation, or independent interpretation of the information presented.