Is the RBI Master Direction on Export of Goods and Services still in force?
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Short answer
RBI's Master Direction on Export of Goods and Services no longer governs new exports.2 Its last update was 17 July 2026.1 Paragraph 4 of A.P. (DIR Series) Circular No. 20 superseded it from 1 October 2026.2 The 2026 export regulations and Circular No. 20 replace it.23 Regulation 20 still refers to it for some older transactions.4
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Exports from 1 October 2026 | FEMA (Export and Import of Goods and Services) Regulations, 2026 and A.P. (DIR Series) Circular No. 2023 | Master Direction superseded from 1 October 20262 | Not applicable | 28 October 2026 |
| Export transactions before 1 October 2026 that needed RBI approval | 2026 Regulations, regulation 20, read with the Master Direction as updated till 17 July 20264 | Not applicable | Not applicable | 28 October 2026 |
The Master Direction on Export of Goods and Services was, for about ten years, the main RBI document Indian exporters and their banks worked from.1 Many web pages still quote it. From 1 October 2026 it no longer governs new exports.2 This page explains what it was, what it said that mattered to service exporters, and where those rules sit now.
What is the RBI Master Direction on Export of Goods and Services?
The Master Direction on Export of Goods and Services is RBI's compilation of its instructions to banks on exports, issued as FED Master Direction No. 16/2015-16 (RBI/FED/2015-16/11) on 1 January 2016 and superseded from 1 October 2026.12
- Addressees: all Authorised Dealer Category-I banks.1
- Legal basis: issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (FEMA).1
- Regulations behind the Master Direction: the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015.1
- Last update: as on 17 July 2026.1
A Master Direction is not itself a regulation. The Master Direction told banks how to carry out the regulations with their customers, which is why exporters met its rules mainly through their bank.1
Who does the Master Direction on Export of Goods and Services apply to?
The Master Direction applies to no new exports from 1 October 2026, and it remains relevant only for export transactions before that date that needed RBI approval.24
| Entity type | Applicable? | Why | Best for |
|---|---|---|---|
| Exporter invoicing from 1 October 2026 | No | Circular No. 20 superseded the Master Direction from 1 October 20262 | Use the 2026 Regulations instead |
| Exporter with an older transaction that needed RBI approval | Yes, through the bank | Regulation 20 tells banks to handle such transactions4 | Old invoices needing extensions or approvals |
| AD bank | Partly | The bank applies regulation 20 to older transactions4 | Handling legacy approvals |
| Anyone reading an older guide | No, for current rules | The 2026 Regulations supersede the 2015 Regulations the Master Direction implemented3 | Spotting outdated advice |
For how your bank applies the old rules to old invoices, ask it directly.
How do you check whether the Master Direction applies to an export transaction?
You check by the transaction date: exports from 1 October 2026 follow the 2026 Regulations and Circular No. 20, and older transactions that needed RBI approval go to your bank under regulation 20.234
- Date: check whether the export transaction was undertaken before or from 1 October 2026.2
- New exports: for exports from 1 October 2026, apply the 2026 Regulations and Circular No. 20.23
- Older approvals: for an older transaction that needed RBI approval, go to your bank under regulation 20.4
- Bank SOP: check the point against your bank's published SOP.
The 2026 Regulations supersede the 2015 Regulations "except in respect of things done or omitted to be done before such supersession".3
Which provisions and limits did the Master Direction set for service exporters?
The Master Direction had four parts, and for freelancers, agencies and IT firms a handful of paragraphs did most of the work.1
| Part | Title | Examples of topics | Best for |
|---|---|---|---|
| A | General | Realisation and repatriation; manner of receipt; EEFC accounts; project and service exports | Exporters checking old realisation rules |
| B | EDF / SOFTEX Procedure | Goods through Customs ports; SOFTEX forms; export of services; third-party export proceeds | Former SOFTEX filers |
| C | Obligations of Authorised Dealers | EDF waiver; advances; extension of time; reduction in value; write-off; set-off; caution list; e-BRC; EDPMS reconciliation | Exporters with old unrealised invoices |
| D | Remittances connected with Export | Agency commission; refund of export proceeds | Exporters paying commission or refunds |
The provisions that mattered most to service exporters were:1
- B.5 SOFTEX Forms: single and bulk SOFTEX filing, certification by the designated official at STPI or SEZ within 30 days of the invoice or the last invoice in a month, and invoicing at least monthly for long contracts.1
- B.7 Export of Services: services to which no form applied could be exported "without furnishing any declaration", but the money still had to be realised and repatriated.1
- C.17 Reduction in invoice value: banks could approve reductions up to 25% of invoice value, with no ceiling for exporters of more than three years with a satisfactory track record.1
- C.20 Extension of time: banks could extend realisation up to six months at a time, subject to conditions; other cases needed RBI approval.1
- C.23 Write-off: self write-off up to 5% (10% for status holders) and bank write-off up to 10% of the previous calendar year's realisations, in listed situations.1
- C.30 e-BRC: banks generate e-BRCs only from EDPMS data, from 16 October 2017.1
- C.31 EDPMS special procedure: entries of ₹10 lakh or less closed on the exporter's declaration, including quarterly consolidated declarations.1
What happens if you rely on the Master Direction for new exports?
If you rely on the Master Direction for exports from 1 October 2026, you follow rules that have been superseded, such as SOFTEX, no declaration for services, and fixed reduction ceilings.23
- SOFTEX: regulation 3 of the 2026 Regulations requires an EDF for software.3
- No declaration for services: regulation 3 now requires an EDF for other services too.3
- 25% reduction ceiling: regulation 6 leaves reductions to bank discretion.3
- RBI approval for extensions: regulation 5 leaves extensions to bank discretion.3
For example, an IT firm still planning a SOFTEX filing for an October 2026 invoice would miss the EDF that regulation 3 requires.3
Which RBI rule superseded the Master Direction on Export of Goods and Services?
A.P. (DIR Series) Circular No. 20 dated 16 January 2026 superseded the Master Direction on 1 October 2026: paragraph 4 says the Master Directions on Export and on Import of Goods and Services, and the circulars listed in its Annex, "shall stand superseded", and paragraph 7 sets that date.2
| Rule | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| A.P. (DIR Series) Circular No. 20 | Paragraphs 4 and 7 and Annex | 16 January 2026, in force 1 October 20262 | Supersedes the Master Directions and 96 export and 71 import circulars | Checking whether an old circular still applies |
| FEMA (Export and Import of Goods and Services) Regulations, 2026 | Supersession of the 2015 Regulations | 13 January 2026, in force 1 October 20263 | Replaces the regulations the Master Direction implemented | All exports from 1 October 2026 |
| FEMA 23(R)/(1)/2026-RB | Regulation 20 | 22 September 20264 | Banks handle older transactions that needed RBI approval under the Master Direction "as updated till July 17, 2026" | Old invoices needing approval |
| RBI press release 2025-2026/1933 | Announcement | 16 January 20265 | Announced the Regulations and the "Directions on Export and Import of Goods and Services" together | Background on the change |
For an old invoice where the Master Direction would have sent you to RBI, for example an extension outside the bank's C.20 powers, you now go to your bank.14
Where did the Master Direction's rules go in the 2026 Regulations?
Most of the Master Direction's topics now sit in the 2026 Regulations, usually as bank discretion without the old numeric limits.13
| Topic | Master Direction (until 30 September 2026) | 2026 Regulations (from 1 October 2026) | Best for |
|---|---|---|---|
| Declaration for software | B.5 SOFTEX | Regulation 3: EDF | Software and SaaS exporters |
| Declaration for other services | B.7: none needed | Regulation 3: EDF | Freelancers and agencies |
| Realisation period | A.2: nine months from date of export | Regulation 5: nine months from invoice date; twelve if INR | Setting payment terms |
| Extension | C.20: up to six months at a time, with conditions | Regulation 5: bank discretion | Delayed client payments |
| Reduction in value | C.17: 25% ceiling, with exceptions | Regulation 6: bank discretion; on declaration up to ₹10 lakh | Short payments |
| Write-off | C.23: percentage limits | No separate rule; regulation 6 covers non-realisation | Unpaid invoices |
| Set-off | C.26 | Regulation 7 | Exporters with amounts to set off |
| Caution list | C.28 | Regulation 13: advance or LC after one year unrealised; existing list continues | Exporters with long-unpaid bills |
| Small EDPMS entries | C.31: ₹10 lakh declaration | Regulation 4(2): ₹10 lakh declaration, quarterly bulk | Small invoices |
See what changed in 2026 for the full comparison.
What are the common mistakes with the RBI Master Direction on exports?
The common mistakes are quoting the Master Direction for current rules and assuming its numeric limits still apply to new exports.23
- Current rules: treating a guide that cites the Master Direction as current for exports from 1 October 2026.2
- Write-off limits: applying C.23 percentages, when the 2026 Regulations have no separate write-off rule.13
- RBI applications: applying to RBI for an older transaction that regulation 20 now sends to the bank.4
- Live web page: reading RBI's still-published Master Direction page as current.12
Check the point against the 2026 Regulations, our regulation-by-regulation guide, and your bank's published SOP, and ask a chartered accountant if an older transaction is involved.3
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]RBI: Master Direction on Export of Goods and Services (FED Master Direction No. 16/2015-16, RBI/FED/2015-16/11, dated 1 January 2016), updated as on 17 July 2026
- [2]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026, Export and Import of Goods and Services (paragraphs 4 and 7 and Annex)
- [3]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB dated 13 January 2026, amended up to 22 September 2026
- [4]RBI: FEMA (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026 (regulation 20)
- [5]RBI press release 2025-2026/1933 dated 16 January 2026 on the 2026 Regulations and Directions
Frequently asked questions
When was the Master Direction on Export of Goods and Services superseded?+
The Master Direction on Export of Goods and Services was superseded from 1 October 2026, the date A.P. (DIR Series) Circular No. 20 came into force. Paragraph 4 of the circular says the Master Directions on export and import stand superseded, and paragraph 7 sets the date.2
Why does the RBI website still show the Master Direction?+
RBI's page still carries the Master Direction text, last updated as on 17 July 2026.1 Circular No. 20 superseded the Master Direction from 1 October 2026, so treat the page as historical, except for older transactions that regulation 20 of the 2026 Regulations still links to the Master Direction.24
What replaced the Master Direction on exports?+
The Master Direction was replaced by A.P. (DIR Series) Circular No. 20 dated 16 January 2026, read with the FEMA (Export and Import of Goods and Services) Regulations, 2026.23 The regulations bind exporters directly, and the circular gives directions to the Authorised Dealer banks that handle export transactions.
Do the Master Direction's write-off limits still apply?+
The Master Direction's write-off limits do not apply to exports from 1 October 2026. The 2026 Regulations have no separate write-off rule; regulation 6 lets the bank allow a reduction in export value, including for non-realisation, at its discretion and on declaration up to ₹10 lakh.3
Is there a new Master Direction on exports?+
The 2026 directions to banks were issued as A.P. (DIR Series) Circular No. 20, which RBI's press release of 16 January 2026 calls the Directions on Export and Import of Goods and Services.25 Check RBI's Master Directions page for any later consolidation of these directions.
How many circulars did Circular No. 20 supersede?+
The Annex to A.P. (DIR Series) Circular No. 20 lists 96 export circulars and 71 import circulars that stand superseded from 1 October 2026, along with the Master Directions on export and on import of goods and services.2 Older guides citing those circulars describe rules that no longer govern new exports.
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
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Before-and-after list of the FEMA export rule changes that matter to Indian service exporters from 1 October 2026: EDF, SOFTEX, realisation and bank powers.
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The FEMA Export and Import Regulations, 2026 as amended to 22 September 2026: each regulation mapped for service exporters, plus the amendment log.
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The RBI regulations, directions and circulars that govern Indian service exporters as of October 2026, grouped by topic, with what each covers and what was superseded.
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