Paid by clients abroad? RBI's new export rules from 1 October 2026 explained
RBI's new export rules started on 1 October 2026. What freelancers, tutors and creators paid from abroad need to know about the EDF and the 9-month limit.
If you earn from clients outside India as a freelancer, tutor, designer, developer or creator, you may have heard about a new form called the EDF. Here is what changed on 1 October 2026, and what RBI has said about individuals.
What changed
RBI's Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 started on 1 October 2026. RBI notified them on 13 January 2026 and amended them on 22 September 2026. They replace the older rules for anyone in India who sells goods or services to buyers abroad.
For services, the main points in the regulations are:
- A declaration called the EDF. An exporter of services gives the Export Declaration Form to the bank that handles the foreign money. It is due within 30 days after the end of the month in which the invoice was raised. One EDF can cover all clients for a month. For services other than software, it can be filed on or before the day the payment arrives.
- Money must come in within 9 months. The full amount for services must reach India within 9 months from the invoice date. If you bill or settle in rupees, the limit is 12 months. Your bank can give more time if you have a good reason.
- Small bills are simpler. For a bill of up to ₹10 lakh, the bank can close the export record on your own declaration that you were paid in full or otherwise. You can also send these declarations once a quarter. If a client paid less, for example after a platform fee, the bank can accept the lower amount on your declaration for bills up to ₹10 lakh.
- Unpaid bills block future work. If money stays unpaid for more than one year after the due date, further exports are allowed only against full advance payment or an irrevocable letter of credit.
What RBI said about individuals
On 7 October 2026, Deputy Governor Rohit Jain said individuals are not included in the reporting rules for contracts of a personal nature, as reported by Business Today. Governor Sanjay Malhotra said individuals who provide small services abroad, such as tutoring or software work, are not required to report. RBI said it will issue FAQs to make this clear. They had not been published by 11 October 2026.
The regulations themselves do not set an amount below which an individual is left out. So the exact line between a personal contract and a services export is not yet clear.
Banks in the middle cannot convert your dollars
On 15 October 2026, FEDAI, the body of banks that deal in foreign exchange, told its member banks that a bank in the middle of a transfer should not convert an incoming foreign currency payment into rupees only to pass it on to your bank, unless the sender or you ask for it. The money should travel on in the original currency. This was reported by The Economic Times on 17 October 2026. The paper said RBI had raised the issue because some intermediary banks converted dollars at poor rates, so freelancers and small exporters received less.
Banks were also told to keep their forex service charges in line with the work involved, and to show their currency conversion rates on their websites. If you want your own bank to do the conversion, you can ask your client to tell their bank not to convert the payment on the way.
What you can do now
- Keep your invoices. Note the invoice date, the amount billed and the amount that reached your account.
- Note platform deductions. If a platform or payment service keeps a fee, keep its statement. It shows why less money arrived than you billed.
- Ask your bank. The bank that receives your foreign payments will tell you if it needs an EDF or a declaration from you.
- Watch for the FAQs. We will update this guide when RBI publishes them.
Income tax on foreign earnings is a separate matter. These rules do not change how much tax you pay.
Sources: RBI: Export and Import of Goods and Services Regulations, 2026, RBI press release of 16 January 2026, Business Today: individuals not covered, RBI clears air on new EDF framework, Inc42: new FEMA rules explained for freelancers and creators, The Economic Times: banks barred from converting foreign earnings as middlemen.
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Last checked 17 October 2026. Posts never contain referral or affiliate links from the writer.
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