The revised rules simplify export declarations and narrow import reporting requirements for eligible transactions, with effect from 1 October 2026.
The Reserve Bank of India has moved to lighten compliance for smaller service exporters and importers, easing paperwork around foreign exchange reporting in a change that took effect retrospectively from 1 October 2026. The central bank’s latest amendment to its foreign exchange regulations simplifies the Export Declaration Form process for certain service exports and lifts the reporting threshold for service imports, according to the RBI notification and subsequent reports by Indian business publications.
Under the revised rules, service exporters will be treated as having filed the Export Declaration Form once they give an authorised dealer bank the payment receipt information needed to credit the money to their account. For exporters other than resident individuals, the simplified treatment applies to inward remittances of up to Rs 10 lakh, or the foreign currency equivalent, for each service transaction. Resident individuals are defined in the notification as natural persons resident in India.
The RBI has also narrowed the scope of reporting under the Import Data Processing and Monitoring System. Banks now need to enter service import details within five working days only when the importer is not a resident individual and the invoice or contract value is above Rs 10 lakh, or its foreign currency equivalent. According to the notification, the measure is intended to reduce compliance burden for eligible businesses while keeping reporting in place for larger transactions.
The change will be welcome for freelancers, small exporters and smaller service importers that have long faced the same reporting requirements as larger firms. Industry reports say the move is likely to cut routine documentation without altering the broader foreign exchange framework, and the RBI’s retrospective effective date means the new thresholds apply from the start of October.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
