Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026

The Second Amendment Regulations simplify how certain exports and imports of services are reported. For service exports, an EDF is deemed submitted when the exporter gives the authorised dealer the information needed to credit the payment. This applies to every resident individual and to other exporters when the inward remittance is no more than ₹10 lakh or equivalent foreign currency.

For service imports, an authorised dealer must enter details in IDPMS within five working days only when the importer is not a resident individual and the invoice or contract value exceeds ₹10 lakh or equivalent foreign currency. The information is based on details furnished by the importer, rather than a separately declared and submitted record.

The amendment is dated November 02, 2026, but its stated commencement date is October 01, 2026. It changes the principal 2026 regulations and creates more targeted reporting for smaller service payments and resident individuals.

An Export Declaration Form is a regulatory declaration used to report an export and support monitoring of the related foreign payment. In this amendment, the crucial change is a deemed-submission rule for service exports. The exporter does not need a separate EDF step in the situations covered by the new provisos.

A resident individual is treated as having submitted the EDF when that person gives the authorised dealer the information required for receiving payment and crediting the account. For an exporter that is not a resident individual, the same treatment applies when the inward remittance for the service is no more than ₹10 lakh, or its foreign-currency equivalent.

This means the payment-crediting process becomes the reporting trigger for covered transactions. The amendment does not remove all reporting rules: the simplified treatment depends on the exporter’s status and, for non-individual exporters, the stated value limit. The revised regulations apply from October 01, 2026.

The amendment distinguishes between resident individuals and everyone else. A resident individual is a natural person who is resident in India. Every service exporter in that category is deemed to have submitted the EDF after providing the required payment information to the authorised dealer.

Other service exporters receive the same deemed-submission treatment only when the inward remittance for the service is no more than ₹10 lakh or equivalent foreign currency. On the import side, the simpler treatment applies to resident individuals because authorised dealers need not enter their service-import details under the amended clause. For importers who are not resident individuals, IDPMS entry is required when the invoice or contract value exceeds ₹10 lakh.

These categories target reporting obligations more precisely. Individuals handling foreign service payments face fewer formal steps, while larger or non-individual transactions remain subject to more explicit bank reporting. The regulations take effect from October 01, 2026.

The ₹10 lakh threshold is a value test for service transactions involving parties that are not resident individuals. For a non-individual service exporter, an inward remittance of no more than ₹10 lakh, or its foreign-currency equivalent, allows the payment information given to the authorised dealer to count as EDF submission.

The import rule works in the opposite direction. If the importer is not a resident individual and the service invoice or contract value is more than ₹10 lakh, the authorised dealer must enter the import details in IDPMS within five working days of receiving the importer’s details. The text uses “more than ₹10 lakh,” so the import trigger is above the threshold.

Resident individuals are treated separately. Their service-export payment information can count as EDF submission regardless of the stated threshold, while the amended import clause specifically excludes them from this IDPMS entry requirement. The equivalent foreign-currency amount also counts.

Freelancers and other resident individuals may find foreign service payments easier to process because supplying required information to the authorised dealer is treated as EDF submission. Small non-individual service exporters may also use this simplified route when the inward remittance is no more than ₹10 lakh or equivalent foreign currency.

For banks and other authorised dealers, the rules clarify when payment information completes export reporting and when import records must be entered. For a non-individual importer above ₹10 lakh, the dealer must record service-import details in IDPMS within five working days after receiving the importer’s details. The importer’s furnished information becomes the basis for that entry.

The likely practical effect is less duplicate paperwork for covered transactions and more focused scrutiny of larger non-individual imports. However, the article does not specify fees, forms, penalties, or operational procedures beyond these reporting requirements. Traders and banks would therefore still need to follow applicable processes under the principal regulations.

IDPMS is the Import Data Processing and Monitoring System named in the regulation. Requiring authorised dealers to enter qualifying service-import details creates a central banking record of those transactions. Such records help foreign-exchange administration connect payments for imported services with information supplied by the importer.

Under the amended rule, the dealer enters the details within five working days of receiving them. The details come from the importer. The duty applies when the importer is a person other than a resident individual and the invoice or contract value is more than ₹10 lakh, or the equivalent in foreign currency.

The article does not list every purpose of IDPMS or describe enforcement procedures. It does show a clear policy direction: retain formal monitoring for larger, non-individual service imports while excluding resident individuals from this specific entry requirement. This makes reporting more targeted without removing the authorised dealer’s role in foreign-exchange oversight.

Foreign-exchange regulation is the system of rules governing money and payments that cross national borders. In this article, the Reserve Bank of India uses powers under the Foreign Exchange Management Act, 1999, to regulate exports and imports of goods and services. The rules define reporting duties for exporters, importers, and authorised dealers.

Monitoring matters because an exported service should be connected with the payment received for it, while an imported service should be connected with the payment made for it. The amendment uses payment information for certain service exports and requires IDPMS records for larger service imports by non-individuals. These mechanisms give authorised dealers documented transaction information.

The changes also show an attempt to match oversight with transaction type and value. Resident individuals receive simpler treatment, and non-individual exports up to ₹10 lakh receive a deemed EDF route. Larger non-individual imports remain subject to IDPMS entry within five working days. The stated commencement date is October 01, 2026.