Overview
- The Reserve Bank of India’s Foreign Exchange Management regulations took effect on October 1, 2026, and now require exporters of services, including software, to file an Export Declaration Form (EDF).
- Exporters must submit EDFs via their authorised dealer bank within 30 days from the end of the month the invoice was raised, and banks will record declarations in the Export Data Processing and Monitoring System and mark payments as realised when funds arrive.
- Export proceeds generally must be realised within nine months of the invoice date, with a 12-month window when the invoice is denominated in Indian rupees.
- RBI has carved out reliefs: individuals providing personal services are exempt, EDF entries for bills up to Rs 10 lakh can be closed on exporter self-declaration, quarterly batching of small invoices is allowed, and software exporters get some filing flexibility.
- Freelancers, micro IT shops and small exporters warn the new rule adds paperwork and could slow payments and cash flow, and RBI has said it will publish FAQs and guidance to clarify implementation and bank procedures.