RBI Amends FEMA 23(R) Export-Import Regulations: Shorter Timelines and New Authorised Dealer Powers
Quick Answer
The Reserve Bank of India has amended the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 through Notification No. FEMA 23(R)/(1)/2026-RB dated September 22, 2026. The amendment shortens two time periods prescribed under regulation 5(1), preserves existing orders for exporters on the RBI's Caution List, and empowers Authorised Dealer (AD) banks to process certain pre-October 2026 export, import, and merchanting-trade transactions that previously required RBI's own approval. The changes take effect from October 1, 2026.
At a Glance
Who Is Affected?
The amendment affects exporters and importers of goods and services governed by the FEMA 23(R) framework, Authorised Dealer banks handling related transactions, and specifically: (i) parties subject to the timelines in regulation 5(1), (ii) exporters currently on the RBI's Caution List, and (iii) parties with export, import, or merchanting-trade transactions from before October 1, 2026 that were pending RBI approval.
What Changed: Regulation 5(1) Timelines
The amendment substitutes two time periods within regulation 5(1) of the principal regulations:
The amendment notification only reproduces the numeric substitutions, not the full operative text of regulation 5(1). Under FEMA's export-import framework, provisions of this kind have conventionally governed the period within which export value must be realised and repatriated to India. Readers should confirm the precise scope of regulation 5(1) against the principal regulations — FEMA 23(R)/2026-RB dated January 13, 2026 — rather than relying on this interpretation alone.
New Savings Clause for Caution-Listed Exporters
A proviso has been added at the end of regulation 13: exporters who are on the RBI's Caution List as on September 30, 2026 — placed there under Regulation 16 of the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 — will continue to be governed by that existing order until they are removed from the Caution List. In effect, the amendment does not automatically release Caution-Listed exporters from their existing restrictions merely because the new regulations take effect.
New Powers to Authorised Dealers
A new regulation 20, "Powers to Authorised Dealers," has been inserted after regulation 19. It provides that Authorised Dealers shall handle transactions relating to the export and import of goods and services, as well as merchanting trade, that were undertaken before October 1, 2026 and which earlier required RBI's own approval under:
- the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015;
- Master Direction – Export of Goods and Services (FED Master Direction No. 16/2015-16, dated January 1, 2016, as updated till July 17, 2026); and
- Master Direction – Import of Goods and Services (FED Master Direction No. 17/2016-17, dated January 1, 2016, as updated till January 12, 2026).
In effect, this shifts processing of legacy, pre-commencement approval requests from RBI directly to Authorised Dealers.
Effective Date and Transition
The amendment regulations come into force from October 1, 2026. The notification itself is dated September 22, 2026 and was published in the Official Gazette on September 24, 2026. No separate transition period is specified for the regulation 5(1) timeline changes; the Caution List proviso and the Authorised Dealer powers under new regulation 20 are themselves transitional in nature, addressing exporters and transactions that predate the October 1, 2026 commencement.
Practical Implications
Exporters and importers working to the earlier fifteen-month and eighteen-month timelines under regulation 5(1) will need to recalibrate internal tracking to the shorter nine-month and twelve-month periods from October 1, 2026. Authorised Dealers should prepare to take on direct handling of pending pre-commencement export, import, and merchanting-trade approvals that would otherwise have gone to RBI. Exporters currently on the Caution List should not assume the new regulations alter their status — the existing Regulation 16 order continues to apply until formal removal.
Frequently Asked Questions
When does this amendment take effect?
October 1, 2026.
What timelines changed under regulation 5(1)?
Clauses (a) and (b) move from fifteen months to nine months; the first proviso moves from eighteen months to twelve months.
Does this affect exporters on the RBI Caution List?
No — exporters on the Caution List as on September 30, 2026 continue to be governed by their existing Regulation 16 order until removed from the list.
What is the new regulation 20 about?
It empowers Authorised Dealers to handle export, import, and merchanting-trade transactions undertaken before October 1, 2026 that earlier required RBI's own approval.
Which principal regulations does this amend?
The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, notified as FEMA 23(R)/2026-RB on January 13, 2026 and Gazette-published on January 15, 2026.
Who signed the notification?
N. Senthil Kumar, Chief General Manager, RBI Foreign Exchange Department.
Document: Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026. Issuing authority: Reserve Bank of India, Foreign Exchange Department, Central Office, Mumbai. Reference: Notification No. FEMA 23(R)/(1)/2026-RB. Date: September 22, 2026. Signatory: N. Senthil Kumar, Chief General Manager. Published in the Official Gazette of India, Extraordinary, Part III, Section 4, on September 24, 2026.
This article is for informational and educational purposes only and does not constitute legal or regulatory advice. Readers should verify the applicable primary regulatory source, including the full text of the principal regulations, before taking action.
