The Reserve Bank of India (RBI) announced the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, on January 13, effective October 1, 2026, replacing the decade-old 2015 rules. These principle-based regulations ban advance remittances for gold and silver imports to mitigate money laundering risks, while easing compliance for small exporters and importers.

Industry experts highlight vulnerabilities in high-value bullion trade, where crude oil and gold dominate India's import bill. Sajal Gupta, head of forex and commodities at Nuvama Wealth Management, explained that unfulfilled advance payments allow funds to exit India without goods delivery, enabling potential laundering. Non-compliant importers must repatriate funds or provide bank guarantees for future transactions, with authorized dealers monitoring via EDPMS/IDPMS systems.

MSMEs gain significant relief through self-declarations for transactions up to Rs 10 lakh, including quarterly bulk filings, reducing paperwork burdens. Service exporters, including software firms now under this category, can file within 30 days of invoicing with monthly consolidations allowed. Software Technology Parks of India and authorized dealers serve as specified authorities for streamlined approvals.

Banks receive expanded roles, setting advance payment thresholds for non-bullion imports and mandating standby letters of credit beyond limits. Export proceeds maintain a 15-month repatriation period, extendable to 18 months for INR-settled deals, with directives for proportional transaction charges. Third-party set-offs among related entities no longer need prior lender approval.

As of January 18, 2026, these reforms balance risk control with business ease, positioning banks as key compliance overseers amid stable implementation updates.