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Dated: 14.06.2026

RBI Amends Export Regulations: Export Realisation Period Reduced from 15 to 9 Months

The Reserve Bank of India (RBI) has introduced a significant amendment to the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015, impacting exporters across the country. This change, effective from the date of its publication in the Official Gazette, shortens the permitted period for realisation and repatriation of export proceeds from fifteen months to nine months.

Key Highlights of the Amendment

1. Regulation Update
   • The amendment, titled the Foreign Exchange Management (Export of Goods and Services) (First Amendment) Regulations, 2026, modifies Regulation 9 of the principal regulations.
   • Both sub-regulation (1) and sub-regulation (2), clause (a), now require that export proceeds must be realised and repatriated to India within nine months from the date of export.
2. Legal Authority
   • The amendment is issued under the powers conferred by Section 7, Section 8, and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999.
   • The notification is signed by the Regional Director of the RBI and is enforceable upon its publication.
3. Historical Context
   • The principal regulations were first notified in January 2016 and have undergone several amendments over the years to adapt to changing economic and trade conditions.
   • Previous amendments addressed various aspects of export and foreign exchange management, but this is the first major reduction in the export realisation period in recent years.

Implications for Exporters

1. Shorter Realisation Window
   • Exporters now have only nine months, instead of the previous fifteen, to ensure that payments for exported goods and services are received and repatriated to India.
   • This change necessitates tighter contract management, faster follow-ups with overseas buyers, and more efficient logistics and documentation processes.
2. Compliance Requirements
   • Failure to realise export proceeds within the stipulated period may attract penalties or other regulatory actions under FEMA.
   • Exporters should review their existing contracts and payment terms to ensure compliance with the new timeline.
3. Strategic Considerations
   • Businesses may need to renegotiate payment terms with international clients to align with the new regulatory requirements.
   • Enhanced coordination with banks and authorised dealers will be essential to monitor and report export realisations within the reduced timeframe.

Steps Exporters Should Take

1. Audit Current Export Contracts
   • Identify contracts with payment terms exceeding nine months and initiate discussions for amendments.
2. Strengthen Follow-Up Mechanisms
   • Implement robust tracking systems for export shipments and payments to avoid delays.
3. Engage with Financial Partners
   • Work closely with banks and authorised dealers to ensure timely documentation and reporting of export proceeds.
4. Stay Updated on Regulatory Changes
   • Regularly monitor RBI notifications and consult with compliance experts to remain aligned with evolving regulations.

Conclusion

The RBI’s decision to reduce the export realisation period to nine months reflects a move towards greater efficiency and faster foreign exchange inflows. Exporters must adapt quickly to these changes to maintain compliance and optimise their international trade operations.

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Source: RBI

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