01The new rulebook
The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB of 13 January 2026, amended on 22 September 2026) came into force on 1 October 2026. Many decisions that used to need RBI approval are now left to your Authorised Dealer bank, which must publish its own policy, document list, timelines and charges on its website.
02When you must pay
Pay within the period in your contract with the supplier. Your bank tracks each bill of entry in IDPMS and follows up. If you need more time, ask the bank in writing with reasons; it can extend the period. Interest on delayed payment must stay within RBI’s all-in-cost ceiling for trade credit.
03Advance payments
Your bank may allow an advance once it is satisfied the need is genuine. The regulations no longer fix one national dollar limit; each bank may set a threshold above which it asks for a standby letter of credit or a bank guarantee. Route the advance and all later payments for that import through the same bank, or tell both banks if you switch.
- No advance payment is allowed for importing gold or silver.
- If the goods never arrive, you must bring the advance back. Until you do, every future advance needs a standby LC or guarantee from an international bank of repute.
04Is Form A1 still needed?
The 2026 regulations do not prescribe Form A1 or any other fixed form for import payments. Each bank now lists the documents it needs in its published policy and SOP — usually an application, the invoice and, after arrival, the bill of entry. Ask your bank for its current import-payment form and checklist.
05Closing the record
After payment, submit the bill of entry so the bank can close the IDPMS entry. For a bill of entry of up to ₹10 lakh, the bank may close it on your declaration that payment has been made, and you may give such declarations quarterly in bulk. Third-party payments and set-off against export receivables are possible if your bank is satisfied the deal is genuine.