What happened
The Reserve Bank of India (RBI) issued Notification No. FEMA 23(R)/(2)/2026-RB on 2 November 2026, a second set of changes to its 2026 rulebook on exports and imports of goods and services. The text says the changes apply from 1 October 2026.
The amendment changes the main regulations issued on 13 January 2026. It was made under the Foreign Exchange Management Act, 1999 (FEMA), the law that governs foreign exchange dealings in India.
The three changes
- New definition: a “resident individual” is a person resident in India who is a natural person, meaning a human being rather than a company or firm.
- Exports of services: an exporter who is a resident individual is deemed to have submitted the Export Declaration Form (EDF) when they give the Authorised Dealer the information needed about the payment received, so the account can be credited. An Authorised Dealer is a bank permitted to handle foreign exchange.
- Imports of services: banks must enter import details in the Import Data Processing and Monitoring System (IDPMS) within five working days of receiving the details. This now applies to importers who are not resident individuals and where the invoice or contract value is above ₹10 lakh (or the foreign currency equivalent).
What it means for you
If you are a freelancer or consultant in India earning from clients abroad, you count as a resident individual. Under the amendment, giving your bank the payment information is treated as submitting the EDF. The text sets no ₹10 lakh condition for resident individuals on this point.
If you export services through a company or other entity, the same deemed-submission applies only when the inward remittance is not more than ₹10 lakh or its equivalent in foreign currency.
On the import side, the bank’s IDPMS entry requirement now covers only importers that are not resident individuals and contracts above ₹10 lakh. The text does not say what applies to resident individuals or smaller contracts beyond this wording, so check with your bank on how it handles your case.
For example, a firm receiving a foreign payment of ₹8 lakh for services falls within the deemed-submission limit. A payment of ₹12 lakh would not fall under that proviso.
Banks are likely to explain their own process, so ask your Authorised Dealer what information it needs. If you also move money across borders, the Money Transfer to India Calculator can help with estimates.
Background
The main regulations were notified on 13 January 2026 and published in the Official Gazette on 15 January 2026. They were first amended through a notification dated 22 September 2026, published on 24 September 2026. This is the second amendment.
The amendment is signed by N. Senthil Kumar, Chief General Manager. For wider context on how banks verify customers, see our guide to KYC.
