"A decisive shift from fragmented, circular-driven compliance to a unified, principle-based and
digitally monitored framework — with AD banks now bearing significantly more responsibility
and operational autonomy."
The 7 Major Changes — In Detail
Change 1: SOFTEX Is Gone — Single EDF Replaces Everything
The SOFTEX form — used by all software and IT exporters for decades — is entirely eliminated from 1
October 2026. A single Export Declaration Form (EDF) now applies to ALL exports: goods, services, and
software without exception. Software is formally reclassified as a category of 'service'. STPI certification is no
longer mandatory — software exports can now be certified by the exporter's AD bank directly. Banks must
update customer-facing trade finance portals and retire SOFTEX workflows entirely.
Change 2: EDPMS Extended to All Service Exports
EDPMS previously tracked goods exports only. From 1 October 2026, all service exports must also be
tracked in EDPMS. AD banks must upload EDF and shipping bills for both goods and services to EDPMS —
and upload import bills of entry and service details to IDPMS in real time. Legacy EDPMS backlog cleanup for
software exports previously tracked under SOFTEX must be completed before October 1.
Change 3: Revised Realisation Timelines
Kyzer Software | kyzersoft.com
Export proceeds: FCY invoicing — must be realised within 15 months. INR invoicing — within 18 months.
Banks must track every outstanding export transaction against these timelines, generate automated alerts on
approaching deadlines, and escalate overdue cases to supervisory reporting.
Change 4: Simplified Small-Value Closure
Transactions of value up to Rs 10 lakh: EDPMS/IDPMS entries may be closed solely on the basis of
exporter's self-declaration. Banks may also permit quarterly bulk closure of EDPMS entries on declaration
basis. This requires a new closure workflow in trade finance systems.
Change 5: AD Bank SOP Mandate
Every AD bank must have formally documented, written Standard Operating Procedures covering: approvals,
documentation requirements, extension timelines, third-party payment handling, and customer grievance
redressal. These SOPs must be RBI-auditable — inspectors must be able to access and review them during
supervisory visits. SOPs in informal email chains will not satisfy this requirement.
Change 6: Enhanced FETERS Reporting
FETERS (Foreign Exchange Transaction Electronic Reporting System) reporting is enhanced with new data
fields, stricter deadlines, and mandatory reconciliation between FETERS, EDPMS, and IDPMS data. Purpose
code mapping across all transaction types must be updated and validated.
Change 7: Bank-Led Compliance Model
AD banks now gain significantly more operational autonomy — they may grant extensions, permit reduction
in realisation, set off export receivables against import payables, and approve third-party payments without
seeking RBI approval in each case. But this autonomy comes with commensurate accountability: banks must
demonstrate through systems and SOPs that they exercise this discretion responsibly. All RBI references
must now be routed through the PRAVAAH portal.
EDF Filing Mechanism — Still Pending
As of May 2026, the RBI has NOT yet specified whether EDF filing will be through an online portal, email, or
physical submission. This operational circular is expected by August 2026 at the latest. Banks cannot complete
the full EDF integration until specs are published — but can and should build the module architecture, form data
model, and backend workflows now.
Complete Bank Systems and Reports Impacted.
"A decisive shift from fragmented, circular-driven compliance to a unified, principle-based and digitally monitored framework — with AD banks now bearing significantly more responsibility and operational autonomy."
The 7 Major Changes — In Detail
Change 1: SOFTEX Is Gone — Single EDF Replaces Everything
The SOFTEX form — used by all software and IT exporters for decades — is entirely eliminated from 1 October 2026. A single Export Declaration Form (EDF) now applies to ALL exports: goods, services, and software without exception. Software is formally reclassified as a category of 'service'. STPI certification is no longer mandatory — software exports can now be certified by the exporter's AD bank directly. Banks must update customer-facing trade finance portals and retire SOFTEX workflows entirely.
Change 2: EDPMS Extended to All Service Exports
EDPMS previously tracked goods exports only. From 1 October 2026, all service exports must also be tracked in EDPMS. AD banks must upload EDF and shipping bills for both goods and services to EDPMS — and upload import bills of entry and service details to IDPMS in real time. Legacy EDPMS backlog cleanup for software exports previously tracked under SOFTEX must be completed before October 1.
Change 3: Revised Realisation Timelines
Kyzer Software | kyzersoft.com Export proceeds: FCY invoicing — must be realised within 15 months. INR invoicing — within 18 months. Banks must track every outstanding export transaction against these timelines, generate automated alerts on approaching deadlines, and escalate overdue cases to supervisory reporting.
Change 4: Simplified Small-Value Closure
Transactions of value up to Rs 10 lakh: EDPMS/IDPMS entries may be closed solely on the basis of exporter's self-declaration. Banks may also permit quarterly bulk closure of EDPMS entries on declaration basis. This requires a new closure workflow in trade finance systems.
Change 5: AD Bank SOP Mandate
Every AD bank must have formally documented, written Standard Operating Procedures covering: approvals, documentation requirements, extension timelines, third-party payment handling, and customer grievance redressal. These SOPs must be RBI-auditable — inspectors must be able to access and review them during supervisory visits. SOPs in informal email chains will not satisfy this requirement.
Change 6: Enhanced FETERS Reporting
FETERS (Foreign Exchange Transaction Electronic Reporting System) reporting is enhanced with new data
fields, stricter deadlines, and mandatory reconciliation between FETERS, EDPMS, and IDPMS data. Purpose
code mapping across all transaction types must be updated and validated.
Change 7: Bank-Led Compliance ModelAD banks now gain significantly more operational autonomy — they may grant extensions, permit reduction in realisation, set off export receivables against import payables, and approve third-party payments without seeking RBI approval in each case. But this autonomy comes with commensurate accountability: banks must demonstrate through systems and SOPs that they exercise this discretion responsibly. All RBI references must now be routed through the PRAVAAH portal.
EDF Filing Mechanism — Still Pending
As of May 2026, the RBI has NOT yet specified whether EDF filing will be through an online portal, email, or
physical submission. This operational circular is expected by August 2026 at the latest. Banks cannot complete
the full EDF integration until specs are published — but can and should build the module architecture, form data
model, and backend workflows now.
Complete Bank Systems and Reports Impacted.
System / Report | Required Change | Deadline |
EDPMS | Services exports added; EDF replaces SOFTEX; real-time upload; self-declaration closure for <=Rs 10L; bulk quarterly closure | 1 Oct 2026 |
IDPMS | Real-time upload of import bills and service details; advance payment tracking; guarantee linkage; small-value closure | 1 Oct 2026 |
FETERS | New data fields; shorter deadlines; mandatory reconciliation with EDPMS/IDPMS; purpose code mapping update. | 1 Oct 2026 |
Trade Finance Portal — Customer | EDF submission interface; SOFTEX retirement; realisation dashboard; self-declaration option; STPI-free software export | 1 Oct 2026 |
Trade Finance Portal — Bank Backend | EDF processing/routing; EDPMS upload automation; genuineness review for >Rs 10L; realisation alert engine | 1 Oct 2026 |
AD Bank SOP Documentation | Formal written SOPs for 5 areas — RBI-auditable; must be stored in system accessible to RBI inspectors | 1 Oct 2026 |
Merchant Trade Workflow (NEW) | New workflow for merchant trade documentation, monitoring, and reporting — first formal regulatory codification | 1 Oct 2026 |
Realisation Tracking Engine | 15-month FCY and 18-month INR countdown per transaction; automated alerts; overdue escalation to supervisory queue | 1 Oct 2026 |
90-Day Action Plan — The October Countdown
Period | Action |
Now — June 2026 | Design EDF data model; plan EDPMS services extension; architect realisation tracking engine; begin SOP documentation; advise clients to clean EDPMS backlogs |
Jul — Aug 2026 | Build EDF submission module; implement EDPMS services upload; build FETERS reconciliation; complete SOP drafting; integrate EDF filing mechanism once RBI circular released |
Aug — Sep 2026 | End-to-end testing of EDF -> EDPMS -> FETERS workflow; train trade finance officers; dry-run with select corporate clients |
1 October 2026 | GO-LIVE — Full FEMA E&I; 2026 compliance. SOFTEX retired. EDF live for all export types. EDPMS services tracking active. FETERS reconciliation automated. |
Full Compliance Checklist
• Retire SOFTEX workflows — all software export transactions move to EDF from October 1; no SOFTEX
submissions accepted after that date• Build the EDF module in trade finance portal — customer-facing submission, multi-authority routing (Customs/AD bank/STPI/SEZ), status tracking
• Extend EDPMS to service exports — automated upload of EDF and shipping bills for services; test with EDPMS portal in UAT
• Implement realisation tracking — 15-month FCY and 18-month INR countdown per transaction; automated alerts; overdue escalation workflow
• Build self-declaration closure workflow — for entries <= Rs 10L; quarterly bulk closure option; full audit trail for each closure decision
• Implement genuineness review workflow — for entries > Rs 10L; documentary checklist; trade finance officer sign-off; EDPMS closure only after approval
• Write and publish internal SOPs — all five required areas must be documented, approved, and stored in RBI-accessible system
• Update FETERS purpose code mapping — reconcile with EDPMS/IDPMS data; update all transaction type classifications
• Build merchant trade monitoring workflow — documentation checklist, monitoring triggers, reporting linkage
• Advise clients to clean up EDPMS backlogs — use self-declaration closure mechanism for outstanding entries before October 1
• Update all references to RBI — route through PRAVAAH portal as mandated under new bank-led compliance model
Kyzer Software — October 2026 Readiness Partner.
Kyzer Software's Trade Finance Portal is built for the AD bank compliance environment. Our platform includes EDPMS/IDPMS integration, SWIFT MT messaging, trade workflow automation, and configurable regulatory reporting. We are actively building the EDF module aligned with the 2026 Regulations — ready to connect to RBI's specified submission interface as soon as the operational circular is released. Banks that engage with us now will go live on October 1 with confidence.
Contact: kyzersoft.com/contact