Amendments to India's Foreign Exchange Management regulations governing exports and imports came into effect on 1 October 2026. The changes affect the prescribed timelines for realizing and repatriating export proceeds, the treatment of exporters already on the RBI Caution List and certain legacy transactions handled by authorized dealers. The revised provisions are particularly relevant to manufacturers that regularly receive payments from overseas customers.

Under the amended framework described by India Briefing, the general prescribed period for realization and repatriation of export proceeds under the relevant provisions has been reduced from 15 months to nine months. A separate period specified in the applicable proviso has been reduced from 18 months to 12 months. The exact period depends on the nature of the transaction and the applicable regulatory provision.

For non-tyre rubber exporters, including MSMEs supplying hoses, belts, seals, gaskets and engineered rubber components, the change makes receivables monitoring more important. Delayed payments from overseas buyers can create working-capital pressure, particularly when manufacturers must continue paying for raw materials, wages, energy and freight while awaiting settlement.

Companies should review outstanding export invoices, update internal compliance calendars and coordinate with their authorized dealer banks. Exporters already on the Caution List as of 30 September remain subject to applicable existing RBI orders until they are removed from the list. The amendments also provide for authorized dealers to handle specified qualifying legacy transactions undertaken before 1 October that previously required RBI approval.