GJEPC, in association with IndusInd Bank, organised a webinar on 16 October 2026 to explain the revised Foreign Exchange Management Act (FEMA) guidelines and their implications for the gem and jewellery trade.

Prakash Kumar Rath, Head – Gems, Jewellery and Diamond Division, IndusInd Bank, addressed key changes under the revised framework, which came into effect on 1 October 2026. Mital Doshi, Convenor – Banking, Insurance and Taxation Sub-committee, GJEPC, represented the Council, while Sumit Dolwani, Manager – Trade Policy, GJEPC, coordinated the session.

The revised framework consolidates 167 earlier circulars into a single, principle-based set of regulations. It gives authorised dealer (AD) banks greater flexibility in handling foreign exchange transactions and aims to simplify compliance for exporters and importers.

Key changes under the revised FEMA guidelines

• Shorter export realisation periods: The permitted period for realisation and repatriation of export proceeds has been reduced from 12 to nine months for foreign currency invoices and from 15 to 12 months for rupee invoices.
• Greater flexibility for extensions: AD banks can approve extensions for export realisation based on individual circumstances, reducing the need for routine referrals to the Reserve Bank of India (RBI).
• Revised import payment timelines: Import payments can be governed by commercial contracts, replacing the earlier six-month and 360-day restrictions.
• Greater discretion on advance payments: Banks have more flexibility in framing policies for advance remittances, rather than following the earlier fixed threshold.
• Flexibility in third-party payments: Such payments are permitted subject to prescribed conditions and the satisfaction of the AD bank.
• Simplified handling of pending cases: Banks have greater authority to resolve several outstanding Export Data Processing and Monitoring System – EDPMS and Import Data Processing and Monitoring System – IDPMS cases without referring each matter to the RBI.

The webinar highlighted the importance of maintaining accurate records and supporting documentation for all transactions, including those tracked through EDPMS and IDPMS.

During the Q&A session, participants raised concerns about delayed export realisations, advance payments for imports where goods had not been received, and the reconciliation of legacy entries.

Rath advised businesses to approach their AD banks with the necessary documentation to resolve outstanding cases. The revised framework provides banks with greater discretion to address such issues, helping businesses manage compliance and cross-border transactions more efficiently.