RBI amends EDF rules for service exporters, freelancers under FEMA: ₹10 lakh threshold, relief for resident individuals

The Reserve Bank of India (RBI) has clarified the requirements for submitting the Export Declaration Form (EDF) for exporters of services. Under the latest amendment, resident individuals will be deemed to have submitted the EDF once they provide the required payment-related information to their authorized dealer (AD) bank.

The RBI issued the Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026, through a Gazette notification dated 2 November 2026. The regulations will come into force retrospectively from 1 October 2026.

The amendment follows the RBI's earlier amendment dated 22 September, which also came into effect on 1 October. Here's what you need to know.

The 22 September regulation mentioned that, “An exporter of services shall furnish to the specified authority a declaration in EDF specifying the amount representing the full export value of services, within 30 days from the end of month in which invoice for services has been raised.”

• An exporter providing services to one or more recipients during a month could submit a single EDF covering all such exports.
• Exporters of services other than software could submit the EDF on or before the date of receipt of payment.

Under FEMA, an EDF is a document that an exporter submits to their AD bank, declaring the services exported and the corresponding payment expected from overseas clients.

The bank records the declaration in the RBI's Export Data Processing and Monitoring System (EDPMS). The transaction remains pending against the exporter's PAN until the bank receives and matches the payment with the declaration.

Exporters must submit the EDF within 30 days from the end of the month in which the invoice is raised. For invoices issued in October, the submission deadline is 30 November.

The 2 November amendment introduces a definition of a resident individual and clarifies when an EDF will be considered submitted.

The RBI has defined a resident individual as “a person resident in India who is a natural person.”

The RBI has inserted a new provision: “The exporter of services shall be deemed to have submitted the EDF when such exporter, being a resident individual, provides information required in relation to the receipt of payment for such services to the Authorised Dealer for crediting the account of the exporter.”

In simpler terms, individuals earning income from overseas clients, such as freelancers, YouTubers and independent professionals, will not have to submit an EDF separately if they provide the required payment-related information to their bank.

For exporters who are not resident individuals, the amendment provides the same deemed-submission facility when the inward remittance for a service does not exceed ₹10 lakh (or its equivalent in foreign currency).

This means that companies and other service exporters can also benefit from simplified EDF compliance for eligible service export receipts up to ₹10 lakh.

The RBI has also amended Regulation 18(1)(d), which deals with reporting imports of services in the Import Data Processing and Monitoring System (IDPMS).

IDPMS is an RBI reporting platform through which AD banks record and monitor import transactions and related payments.

The revised provision states that the AD “shall enter details of import of service in IDPMS, as furnished by the importer who is a person other than a resident individual and where the invoice or the contract value is more than ₹10 lakh (or its equivalent in foreign currency), within five working days of receipt of details.”

This means that AD banks must enter import-of-service details in IDPMS within five working days of receiving the information when the importer is not a resident individual, and the invoice or contract value exceeds ₹10 lakh.

However, the IDPMS reporting requirement will not apply to resident individuals or to eligible transactions of ₹10 lakh or less.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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