The RBI FEMA rules that came into effect on October 1, 2026 have introduced a new compliance requirement for service exporters in India. Under the Reserve Bank of India’s Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, service exports, including software, now come under the Export Declaration Form (EDF) framework.
The change is particularly relevant for freelancers, consultants, IT companies, software exporters, BPOs and other businesses providing services to overseas clients.
Who Needs to File an EDF?
The new framework requires eligible exporters to declare the value of services provided to clients outside India through an EDF. For example, a freelancer designing a website for a US customer, an Indian software company working for a UK client or a consultant serving an overseas business may fall within the reporting framework.
The requirement essentially creates a formal record connecting the exported service, its invoice value and the payment eventually received in India.
What Is the EDF Deadline?
The EDF has to be filed within 30 days after the end of the month in which the invoice is raised.
For example, an invoice issued on October 12 would have an EDF deadline of November 30. An invoice raised on December 10 would have a deadline of January 30, 2027.
Exporters with multiple overseas clients can also file a single EDF covering services provided to those clients during the month.
How Banks Will Track Export Payments
The EDF is filed through the exporter’s authorised dealer (AD) bank. Software exporters can also submit it through STPI or SEZ authorities, after which it is routed to the bank.
The bank checks the declared value against the transaction and records the information in the Export Data Processing and Monitoring System (EDPMS). Once the overseas payment is received, the transaction is marked as realised and reported to the RBI.
Exporters generally have nine months from the invoice date to realise export proceeds. Where the invoice is denominated or invoiced in Indian rupees, the period is 12 months.
What Freelancers Should Keep in Mind
For invoices of up to ₹10 lakh, the authorised dealer bank can close the entry based on the exporter’s declaration that payment has been received. Freelancers can also provide a quarterly set of service invoices together.
The new framework makes accurate record-keeping important. Exporters should maintain invoices and payment records, ensure declared and received amounts can be reconciled, and check with their authorised dealer bank about the exact EDF filing process and documentation.
Relevant Link: Reserve Bank of India
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