FEMA Overview
Understanding export compliance requirements
FEMA Compliance
What is FEMA?
Foreign Exchange Management Act governs:
- Foreign currency transactions
- Export/import regulations
- RBI compliance
Key Requirements
For exporters:
- Realize export proceeds within deadline
- File SOFTEX for software exports
- Obtain e-FIRC for payments
- Report in EDPMS
Deadlines
- Realization: 9-15 months from export
- SOFTEX: 30 days from invoice
- e-FIRC: On receipt of payment
Penalties
Non-compliance can result in:
- Fines up to 3x amount
- ECGC issues
- Banking problems
FEMA 2026 Regulatory Update
The Reserve Bank of India (RBI) has announced updated FEMA regulations effective October 1, 2026. These are the most significant changes to export compliance in recent years.
Key Changes
| Area | Pre-2026 | Post-2026 |
|---|---|---|
| Declaration Form | SOFTEX (per invoice) | EDF (monthly consolidated) |
| Certifying Authority | STPI mandatory | AD Bank (default), STPI optional |
| Software Classification | Separate "software export" | Reclassified as "services" |
| Remittance Certificate | Physical FIRC | Electronic FIRC (e-FIRC) |
| Filing Deadline | 30 days from invoice date | 30 days from month-end |
EDF (Export Declaration Form)
The EDF is a monthly consolidated form that replaces per-invoice SOFTEX filing:
- Monthly filing: One EDF covers all export invoices for the month
- AD Bank certification: Your Authorized Dealer bank certifies the EDF by default
- 30-day deadline: File within 30 days of the month ending
- Linked invoices: Each EDF references the export invoices it covers
Automatic Regime Detection
The app automatically determines the compliance regime based on your invoice date:
- Invoice date before October 1, 2026: Pre-2026 regime (SOFTEX workflow)
- Invoice date on or after October 1, 2026: Post-2026 regime (EDF workflow)
Penalties
Late EDF filing attracts the same penalties as late SOFTEX filing: Rs. 5,000 per day or 3x export value (whichever is lower).