Service exporters: EDF deemed filed for individuals, and for others up to ₹10 lakh per remittance (FEMA amendment)
TaxByKK · Compliance News · taxbykk.com2 Nov 2026
In short
RBI has amended the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 to cut paperwork for trade in services. A resident individual exporting services is treated as having submitted the Export Declaration Form (EDF) once they give the bank the details needed to credit the payment. Other exporters of services get the same treatment where the inward remittance for the service is not more than ₹10 lakh. On the import side, banks need to enter service imports in IDPMS only for importers other than resident individuals, and only where the invoice or contract value is above ₹10 lakh. The amendment applies from 1 October 2026.
- Authority
- Reserve Bank of India, Foreign Exchange Department
- Notification
- No. FEMA 23(R)/(2)/2026-RB dated 2 November 2026
- Type
- Regulations
- Effective from
- 1 October 2026
- Amends
- FEMA (Export and Import of Goods and Services) Regulations, 2026, notification FEMA 23(R)/2026-RB of 13 January 2026: regulations 2, 3 and 18
- Law
- Sections 7, 8, 10(6) and 47(2) of the Foreign Exchange Management Act, 1999
What changed
| Item | Before | Now |
|---|---|---|
| Definition of "resident individual" | — | A person resident in India who is a natural person (new clause (da) in regulation 2(1)) |
| EDF for export of services by a resident individual | Had to be submitted | Deemed submitted when the exporter gives the AD bank the payment information for crediting the account |
| EDF for export of services by others | Had to be submitted | Deemed submitted the same way, if the inward remittance for the service is not more than ₹10 lakh (or equivalent) |
| IDPMS entry for import of services (regulation 18(1)(d)) | AD bank entered details as declared by the importer, within five working days of receiving documents | Only for importers other than resident individuals and only where invoice or contract value exceeds ₹10 lakh, within five working days of receiving details |
Existing provisos (a) to (c) of regulation 3(2) are renumbered (c) to (e). The regulations apply from 1 October 2026, earlier than the date they were notified. The notification does not say how filings already made since 1 October are to be treated, or whether banks will issue fresh operating instructions.
Who it applies to
- Freelancers and individuals earning from export of services
- Firms and companies exporting or importing services
- AD banks handling EDF and IDPMS
- CAs and FEMA advisers
What to do
- Resident individual service exporters: give your bank the payment details it asks for; no separate EDF is needed.
- Other service exporters: check whether each inward remittance is within ₹10 lakh to use the deemed EDF route.
- Service importers other than individuals: expect IDPMS entries only for invoices or contracts above ₹10 lakh.
- Ask your AD bank how it will apply the change to transactions from 1 October 2026.
Reference
RBI notification No. FEMA 23(R)/(2)/2026-RB, 2 November 2026, Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026; Gazette of India, Extraordinary, Part III, Section 4, No. 645.
Read the official PDF: RBI notification (Gazette)Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
Does a freelancer exporting services still need to file an EDF?
A resident individual is treated as having submitted the EDF once they give the bank the information needed to credit the payment.
What is the ₹10 lakh limit?
For service exporters other than resident individuals, the deemed EDF applies where the inward remittance for the service is not more than ₹10 lakh.
From when does the amendment apply?
From 1 October 2026.