Government of IndiaLaw & regulations
Foreign Exchange Management Act, 1999 (FEMA)
In force
The parent law for all foreign exchange dealings in India. RBI makes regulations and directions under it.
- Only authorised persons (AD banks, money changers) may deal in foreign exchange.
- Sections 7, 8 and 10 cover exports, realisation and repatriation of foreign exchange, and the duties of authorised persons.
- Contraventions can be compounded through RBI.
RBI FEMA notifications →RBITrade settlement
FEM (Export and Import of Goods and Services) Regulations, 2026
Notified 13 Jan 2026 (FEMA 23(R)/2026-RB); in force from 1 Oct 2026
One framework for exports and imports of both goods and services, replacing the 2015 export regulations and the separate import directions.
- AD banks report foreign trade transactions through FETERS.
- For transactions up to ₹10 lakh, EDPMS/IDPMS entries can be closed on the trader's self-declaration of realisation or payment.
- Amendment of 22 Sep 2026 changed 'fifteen months' to 'nine months' in regulation 5(1)(a) and (b), and 'eighteen months' to 'twelve months' in its first proviso.
- AD banks may handle transactions undertaken before 1 Oct 2026 that earlier needed RBI approval (new regulation 20).
RBI amendment notification, 22 Sep 2026 →RBITrade settlement
Master Directions on Export (16/2015-16) and Import (17/2016-17) of Goods and Services
Apply to transactions undertaken before 1 Oct 2026
The earlier operating instructions for AD banks on exports and imports, still relevant for older open transactions.
- Use for shipments and payments that started before the 2026 regulations came into force.
- AD banks can now handle such cases that earlier needed RBI approval.
RBI FEMA notifications →RBITrade settlement
EDPMS and IDPMS: export and import data monitoring
Operational
RBI systems where AD banks track every export shipping bill (EDPMS) and import bill of entry (IDPMS) until the money is realised or paid.
- Open entries past their due date flag the exporter or importer for follow-up.
- Small-value entries (up to ₹10 lakh) can be closed on self-declaration under the 2026 regulations.
- Keep FIRA/FIRC and bank advices: they are the evidence used to close entries.
RBI FEMA notifications →RBIRemittances (LRS)
Liberalised Remittance Scheme (LRS)
In force
Lets resident individuals remit up to US$2,50,000 per financial year for permitted current and capital account purposes.
- Covers travel, education, medical treatment, gifts, maintenance of relatives and overseas investment.
- Forex cards, wires and cash bought for travel all count toward the limit.
- RBI publishes monthly LRS outflow data in its Bulletin (table 36).
RBI FEMA notifications →CBDT / Finance ActTax
TCS on LRS remittances (FY 2026-27)
Effective 1 Apr 2026 (Finance Act 2026)
Tax collected at source on foreign remittances; adjustable against income tax when you file your return.
- Education, medical treatment and travel: nil up to ₹10 lakh per financial year, 2% above.
- Overseas tour packages: 2% from the first rupee.
- Other LRS purposes: nil up to ₹10 lakh, 20% above. Education funded by a loan from a financial institution: nil.
Bank explainer (Standard Chartered India) →FBILBenchmarks & pricing
FBIL reference rate ("RBI reference rate")
Published by FBIL since 10 Jul 2018
The official USD/INR benchmark and major-currency crosses, computed by Financial Benchmarks India from actual interbank trades on Mumbai business days.
- Used for accounting, valuations, RBI filings and some GST calculations.
- Redistribution by data vendors requires an FBIL licence; FXRateDarpan shows an ECB-derived proxy until licensed.
RBI press release →FEDAIMarket conduct
FEDAI rules for forex dealing
In force (self-regulatory)
The Foreign Exchange Dealers' Association of India sets the operating rules banks follow for customer and interbank forex transactions, including how bills are handled.
- Covers transit periods and crystallisation of overdue export bills, and charges conventions.
- Banks link to FEDAI's member information hub for exchange rates, charges and terms.
FEDAI website →ICCDocumentary credit
UCP 600: Uniform Customs and Practice for Documentary Credits
2007 revision, in use worldwide
The International Chamber of Commerce rules that govern most letters of credit (LCs) used in trade.
- Banks examine documents, not goods: discrepancies can delay payment.
- Banks have a maximum of five banking days after presentation to examine documents.
- Pair with ISBP for document examination practice.
International Chamber of Commerce →DGFTTrade policy
Foreign Trade Policy 2023 and the Importer-Exporter Code (IEC)
In force
DGFT runs India's Foreign Trade Policy, issues the 10-digit IEC needed to export or import, and publishes trade notices.
- IEC is applied for online on the DGFT portal and has lifelong validity.
- Schemes such as RoDTEP, Advance Authorisation and EPCG are administered under the policy.
- Watch DGFT public notices and trade notices for procedure changes.
DGFT portal →CBICBenchmarks & pricing
Customs exchange rates (Section 14, Customs Act)
Notified about every fortnight
The rates customs uses to convert invoice values into rupees for duty, with separate import and export columns.
- The rate in force on the date the bill of entry or shipping bill is filed applies.
- These differ from bank card rates and the FBIL reference rate.
CBIC website →Government of IndiaTax
GST on currency conversion (Rule 32(2), CGST Rules 2017)
In force
GST at 18% applies to a notional value of the conversion service, not to the whole amount converted.
- Slab method: 1% of the amount up to ₹1 lakh (minimum ₹250); ₹1,000 + 0.5% of the amount from ₹1 lakh to ₹10 lakh; ₹5,500 + 0.1% above ₹10 lakh (maximum ₹60,000).
- Alternative method: difference between the deal rate and the RBI reference rate × amount.
- Try it in the FXRateDarpan calculator.
Open the calculator →RBILaw & regulations
FEM (Guarantees) Regulations, 2026
A.P. (DIR Series) Circular No. 19, 12 Jan 2026
Updated rules on guarantees involving residents and non-residents, relevant to trade finance structures.
- Check with your AD bank how existing guarantee arrangements map to the new regulations.
RBI FEMA notifications →RBIMarket conduct
RBI Alert List of unauthorised forex trading platforms
Updated periodically (95 entities as of Nov 2025)
Names platforms that are not authorised to deal in forex or run forex electronic trading platforms in India, including sites that promote them.
- Residents trading forex on unauthorised platforms risk action under FEMA.
- FXRateDarpan never promotes forex trading platforms.
RBI website →