New Delhi: The Reserve Bank of India (RBI) on Friday issued the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, along with detailed directions, marking a significant overhaul of the forex compliance framework governing cross-border trade.
The new regulations, which will come into force from October 1, 2026, are primarily principle-based and are aimed at promoting ease of doing business, particularly for small exporters and importers, the central bank said in a statement.
According to the RBI, the revised framework is also intended to empower authorised dealers (AD banks) to provide quicker and more efficient services to their customers by reducing procedural rigidity and allowing greater reliance on risk-based decision-making.
The regulations and accompanying directions were finalised after examining feedback received from stakeholders on draft versions published in July 2024 and April 2025. The RBI has included its responses to major comments in an annexure to the notification, signalling a consultative approach to regulatory reform.
While the RBI has not detailed all operational changes in the press release, industry experts said the shift towards principle-based regulation is expected to:
1) Reduce transaction-level approvals and documentation
2) Improve turnaround times for export and import settlements
3) Provide banks greater discretion in handling routine trade transactions
The move comes amid India’s push to scale up exports and integrate more deeply with global supply chains. By simplifying forex rules and reducing compliance friction, the RBI aims to improve competitiveness and lower costs for businesses engaged in cross-border trade.
Market participants said the long lead time until October 2026 will give exporters, importers and banks adequate time to align internal systems and compliance processes with the new regulatory regime.