RBI compliance
Meet RBI requirements for exporters under FEMA
RBI compliance
Indian exporters must follow Reserve Bank of India (RBI) rules under the Foreign Exchange Management Act (FEMA). The app tracks your key obligations — realization deadlines, filing status, e-FIRC certificates, and documentation — so you can stay compliant without manual spreadsheet tracking.
Key obligations
| Obligation | What you must do | Deadline |
|---|---|---|
| Export declaration | File SOFTEX (pre-October 2026) or EDF (post-October 2026) for each export | 30 days from invoice date (SOFTEX) or 30 days from month-end (EDF) |
| Realization | Receive payment from the buyer and repatriate to India | 15 months from invoice date (foreign currency) or 18 months (INR-denominated) |
| e-FIRC | Obtain an Electronic Foreign Inward Remittance Certificate from your bank | Within 15 days of payment crediting your account |
| EDPMS reporting | Ensure your AD bank uploads export details to RBI's monitoring system | Your bank handles this within 5 working days of receiving your EDF |
| Documentation | Maintain export records for audit | 8 years |
What the app tracks
For each export invoice, the system monitors:
- Declaration status — Whether SOFTEX or EDF has been filed and certified.
- Realization deadline — Countdown to the 15-month (or 18-month) cutoff, with alerts at 60, 30, and 15 days before.
- e-FIRC status — Whether the certificate has been received, is pending, or is missing.
- EDPMS entry — Whether the corresponding entry exists and its closure status.
- Compliance score — An overall percentage reflecting how complete your filings are.
AD bank role
Your Authorized Dealer (AD) bank is central to export compliance. Under FEMA 2026, AD banks have expanded authority:
| Function | What the AD bank does |
|---|---|
| EDF certification | Certifies your monthly Export Declaration Forms (default authority from October 2026) |
| EDPMS reporting | Uploads your export details to RBI's monitoring system |
| e-FIRC issuance | Generates the electronic certificate when foreign payment arrives |
| Extensions | Can grant additional time for realization without requiring separate RBI approval |
| Write-offs | Can approve write-off of unrealized exports within prescribed limits |
| e-BRC generation | Issues the Bank Realization Certificate once payment is matched against the export entry |
Configure your AD bank details in Settings > Export Compliance.
Note: AD banks are prohibited from levying penalties on exporters for regulatory delays under the FEMA 2026 framework.
Write-off limits
If an export payment cannot be collected, your AD bank may write off the receivable within these limits:
| Threshold | Approval needed |
|---|---|
| Up to 5% of total export proceeds realized in the preceding calendar year | AD bank (self-threshold) |
| Up to 10% of the same value | AD bank with additional RBI flexibility |
| Entries of INR 10 lakh or less per invoice | Exporter's declaration (no bank approval needed for value reduction) |
For amounts exceeding these thresholds, RBI approval is required.
Penalty framework
Non-compliance with FEMA attracts penalties under Section 13 of the FEMA Act:
| Violation | Maximum penalty |
|---|---|
| Quantifiable contravention (e.g. unrealized exports, unfiled declarations) | Up to 3 times the amount involved |
| Non-quantifiable contravention | Up to Rs. 2 lakh |
| Continuing contravention | Rs. 5,000 per day after the first day |
Compounding
You can apply to compound (settle) a FEMA contravention within 180 days of the violation. Requirements:
- The contravention must be regularised before applying.
- No pending appeal for the same violation.
- The same contravention cannot be compounded again within 3 years.
Consequence of non-realization
If export proceeds remain unrealized for more than 1 year past the deadline, RBI restricts your future exports to:
- 100% advance payment only, or
- Irrevocable Letter of Credit only.
This restriction severely limits your ability to offer standard payment terms to clients. Track realization deadlines closely to avoid it.
Documentation requirements
Maintain these records for 8 years:
- Export invoices
- Shipping bills (for goods) or EDF/SOFTEX copies (for services)
- e-FIRC and e-BRC certificates
- Bank statements showing foreign-currency receipts
- LUT copies and renewal records
- Correspondence with AD bank regarding extensions or write-offs
Reports for your bank
Generate these from the export compliance report:
- Outstanding statement — All unrealized export invoices with aging.
- Realization report — Payments received, matched to invoices, with e-FIRC references.
- Compliance certificate — Summary of filing status across all export invoices.
Related articles
- FEMA overview — Full regulatory background including the 2026 update
- Realization tracking — Monitor payment realization timelines
- e-FIRC management — Track Electronic Foreign Inward Remittance Certificates
- EDF filing — File monthly Export Declaration Forms
- EDPMS monitoring — Track entries in RBI's export monitoring system
- Export compliance settings — Configure AD bank and other export settings