The Reserve Bank of India has significantly simplified foreign exchange regulations for service exporters and freelancers, raising the self-declaration threshold for export proceeds to ₹10 lakh. This move aims to ease compliance and boost formal remittances.
₹10 lakh
New Threshold
Old Threshold: ₹1 lakh→₹10 lakh
⏳ Time Machine
How today’s news fits into the bigger picture
1999
FEMA Enactment
The Foreign Exchange Management Act () was enacted, replacing FERA (Foreign Exchange Regulation Act), liberalizing foreign exchange transactions and facilitating easier international trade and payments.
2015
Online Payment Gateway Introduction
The RBI allowed Authorized Dealer (AD) Category-I banks to offer online payment gateways for small-value export and import transactions, making it easier for e-commerce and freelancers.
2020
COVID-19 Digital Push
The pandemic accelerated the shift to and remote work, increasing the volume of cross-border freelance transactions and highlighting the need for simpler regulatory frameworks.
March 2026
Consultation Paper on Cross-Border Payments
The RBI released a consultation paper on streamlining cross-border payment regulations, seeking feedback from stakeholders, including service exporters, on existing challenges.
Today
The RBI significantly eased foreign exchange rules for service exporters and freelancers, raising the self-declaration threshold for export proceeds to **₹10 lakh**, up from ₹1 lakh.
What happens next?
This simplification is expected to boost formal remittances and compliance among small-scale service providers, with the RBI likely monitoring its impact before considering further streamlining of cross-border payment regulations in the next fiscal year.
The Reserve Bank of India (RBI) has made a significant move to ease regulations for service exporters and freelancers by amending the Export of Goods and Services (EDF) rules under the Foreign Exchange Management Act (FEMA). The key change is an increase in the threshold for self-declaration of export proceeds from **₹1 lakh to ₹10 lakh**. This means that resident individuals, including a large number of Indian freelancers and small service providers, will now face fewer bureaucratic hurdles when receiving payments from abroad. The simplification aims to reduce compliance burden, promote ease of doing business, and encourage the formalization of cross-border service trade.
💭 If you're wondering…
Self-declaration means that for export proceeds below the specified threshold, you can simply declare the nature of the service and the amount received, without needing to submit extensive supporting documents to your bank, simplifying the process.
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