FEMA 23(R)/2026-RB: A New Framework for India’s Cross-Border Trade 🚨

The RBI has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, bringing exports and imports under a more consolidated and principle-based FEMA framework.

📅 Effective from: 1 October 2026

🔑 Key highlights:

🔹 Unified framework covering export and import of goods and services
🔹 Focus on ease of doing business, particularly for small exporters and importers
🔹 Greater operational flexibility and responsibility for Authorised Dealer (AD) Banks
🔹 Import payment timelines aligned more closely with contractual terms, replacing the earlier general six-month framework
🔹 Streamlined documentation, reporting and compliance processes
🔹 AD Banks required to ensure adherence to FEMA, RBI directions and the applicable Foreign Trade Policy
🔹 References to RBI to be routed through the PRAVAAH portal
🔹 The revised framework strengthens monitoring while simplifying legitimate cross-border trade transactions

💡 What should businesses do now?

With the implementation date approaching, importers, exporters and AD Banks should start reviewing:

✅ Existing trade contracts
✅ Import and export payment processes
✅ Documentation and reporting controls
✅ Internal FEMA compliance procedures
✅ Technology and operational readiness

The key takeaway: FEMA compliance is moving towards a more consolidated, principle-based and digitally enabled framework. Early preparation will be essential for a smooth transition.