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30 March 2026
RBI Introduces Unified EDF for All Exporters; SOFTEX to be Replaced from October 2026
 
The Reserve Bank of India has recently notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, along with the corresponding Directions, which are scheduled to come into effect from 1 October 2026.

These regulations will supersede the existing FEMA Regulations, 2015, thereby introducing a revised regulatory framework governing export and import transactions in India.

  Introduction of Unified Export Declaration Form (EDF)
  • RBI has introduced a single and unified Export Declaration Form (EDF) applicable to all exports, i.e. goods, services, and software.
  • No separate EDF filing would be required for export of goods; the shipping bill filed through the Customs EDI system (ICEGATE) will be treated as EDF.
  • For export of software, EDF must be filed with the specified authority (STPI / SEZ) within 30 days from the end of the month in which the invoice is raised
  • For export of services other than software, EDF will be submitted to the AD Bank on or before the date of receipt of payment. A single consolidated EDF per month would be permitted.
  Time Period for Realization of Export Proceeds
  • Export proceeds must be realized within 15 months from the date of shipment for goods and the date of invoice for services.
  • For exports invoiced/settled in INR, the time limit is extended to 18 months.
  • AD Banks may grant extensions in genuine cases.
  Time Period for Import Payments
  • Import payments must be made within the timeline specified in the import contract.
  • Extensions may be granted by the AD Bank upon submission of a satisfactory explanation.
  • Banks may also close entries in special cases, such as unfulfilled export/import advances or reduced value settlements, subject to satisfaction.
  Manner of Receipt and Payment
  • AD Banks may credit/debit exporter/importer accounts and close entries in EDPMS/IDPMS accordingly.
  • For transactions up to INR 1 million, banks may close entries based on a simple declaration from the exporter confirming receipt (full or partial).
  Set off Export Receivables against Import Payables
  • AD Banks may allow set-off between receivables and payables with the same overseas party.
  • Must be completed within the prescribed realization period or the extended period approved by the AD Bank.
  Third-Party Receipts and Payments
  • AD Banks may permit third-party payments/receipts, subject to satisfaction regarding the genuineness of the transaction.
  Unrealized exports
  • If export proceeds remain unrealized for more than one year from the due date of realization, the exporter can undertake further exports only against full advance payment or an irrevocable Letter of Credit.
Read the detailed notification
Our Comments

The introduction of a unified Export Declaration Form (EDF) across all export categories is a welcome move towards standardizing and streamlining the reporting framework. From a goods export perspective, this change is largely procedural: the existing Shipping Bill filed through the Customs system will be deemed to suffice as EDF, thereby not imposing any additional compliance burden.

However, a more significant impact is expected in the context of service exports. For IT/ITES companies, the EDF framework will replace the existing SOFTEX mechanism, with STPI/SEZ authorities continuing their oversight role. For other service exporters, reporting will now be routed through Authorized Dealer (AD) Banks. This represents a notable shift from the current regime, where such transactions were primarily tracked through banking channels, without a formal declaration mechanism akin to that for goods or software exports.

The move indicates a clear transition towards a more structured, bank-led compliance framework, placing grater responsibility on AD Banks for monitoring, reporting, and the closure of export transactions. In this regard, banks have been provided a transition period of approximately 6 months to align their internal systems and processes. That said, detailed procedural guidance, particularly around formats, timelines, reconciliation with existing systems (such as EDPMS), and documentation requirements, is still awaited and will be critical in determining the practical compliance implications.

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