From $1,000 to ₹10 lakh: RBI’s new export compliance rule explained

Priya runs a small textile export business from Jaipur. Her handcrafted scarves attract buyers from overseas, but every time she ships an order, she spends hours navigating forms, compliance checks, and bank follow-ups. All this for transactions under a few hundred dollars. Recently, she heard something that stopped her in her tracks—RBI's new export compliance rules had changed. Could this simplify her life?

If you're like Priya, you're probably asking the same questions. Staying compliant with RBI rules can feel like chasing a moving target, especially for small businesses that don't have dedicated compliance teams. Rules shift, thresholds change, and the fear of missing a clause keeps many business owners up at night.

The Reserve Bank of India has recently updated its export reporting standards, which could significantly ease the pressure on smaller exporters. The threshold for mandatory reporting has been raised from $1,000 to ₹10 lakh. That's a significant leap—and one that has left exporters asking, 'What does this mean for me?' Why the change now? And how can I make sure I'm ready?

In this blog, we'll examine the changes in the RBI's new export compliance rule and discuss why the shift is significant. We'll explain the rationale behind the new limits, how the changes affect exporters across different sizes, and what specific steps your business should take to stay ahead. We'll also address the top questions exporters have about the update, so you're not left guessing.

If export compliance has ever felt like a maze, this new rule might finally mark a more straightforward way forward.

What changed in the RBI's new export compliance rule?

From $1,000 to ₹10 lakh: what the new threshold means

The most notable aspect of the RBI's new export compliance rule is the significant increase in the reporting threshold. Earlier, exporters had to submit detailed documentation on any export transaction above $1,000—roughly ₹82,000. That rule applied across the board, even for small, infrequent overseas sales.

Now, the Reserve Bank of India has increased that threshold to ₹10 lakh (approximately $12,000) per shipment. It means if your export invoice is valued under ₹10 lakh, you no longer need to report it through the Electronic Data Submission (EDF) system and complete detailed compliance documentation. That's a substantial relief for small exporters like Priya, who regularly ship low-value items to international customers.

What transactions are now covered?

The new rule applies specifically to exports conducted through the Online Payment Gateway Service Providers (OPGSP) model. This includes platforms such as PayPal, RazorpayX, Stripe, and others commonly used by small e-commerce sellers.

Under these rules, any export payment of up to ₹10 lakh made through an OPGSP into an Indian bank account is exempt from filing traditional export declaration forms, provided the transaction is settled within the allowed time and in compliance with FEMA regulations.

• Cross-border e-commerce shipments
• Digital service exports like design, writing, or coding work
• Low-ticket B2C merchandise orders (e.g. crafts, garments)

For large-value exports or B2B contracts not paid through an OPGSP, traditional compliance requirements, such as Bank Realisation Certificates (BRCs) and EDF filing, still apply.

Export forms and documentation: changes at a glance

With the updated compliance rule, exporters now have fewer forms to worry about for lower-value shipments. Transactions under ₹10 lakh via OPGSP don't require:

• Filing the EDF form
• Submitting shipping bills to the AD bank
• Tracking payment realisation manually for bank reporting

This streamlining reduces paperwork, saves processing time at banks, and minimises back-and-forth communications. However, exporters must still maintain internal records and ensure that foreign exchange is received within the prescribed timelines. Banks may also seek basic details in some cases for monitoring purposes.

So, what led the RBI to make this change now? Let's explore that in the next section.

Why the RBI introduced this rule—and why now

Reducing the compliance burden for small exporters

Small exporters often operate with tight margins, limited staff, and non-traditional sales models, such as freelance services or cross-border e-commerce. Until now, they faced the exact export compliance filing requirements as large firms, even for transactions as small as $1,000. That created a disproportionate regulatory load.

By raising the threshold to ₹10 lakh, the RBI is easing that burden. Exporters no longer need to submit detailed data for small-value shipments made through OPGSPs. That means they spend less time filling forms and more time growing their business.

This move is significant for freelancers and micro-sellers who often export services or goods in the ₹20,000–₹5 lakh range. Reducing red tape helps them expand activities without getting bogged down by paperwork.

Aligning with global best practices

Why did the RBI implement a new export compliance rule from $1,000 to ₹10 lakh? In part, to align India's regulations with international norms. Most countries have higher thresholds or relaxed procedures for low-value export shipments made on digital platforms.

India's earlier $1,000 threshold had remained unchanged for years, despite a dramatic shift in technology that altered how exports are handled. By modernising the rule, the RBI is acknowledging how exports increasingly flow through OPGSPs and fintech channels, not just traditional corporate banks.

This shift helps ensure India's regulations don't push small exporters to informal routes. It also reassures international partners that India's rules are evolving with the economy.

Boosting the ease of doing business

India continues to strive for higher rankings in global ease-of-doing-business indices. One way to achieve this is by simplifying outbound payments and trade rules, especially for micro, small, and medium-sized enterprises (MSMEs).

Streamlined rules are likely to increase formal export participation among small businesses. An apparel seller in Jaipur or a self-employed designer in Kochi now has fewer compliance barriers, encouraging more startups to reach global customers.

As more exports shift to digital channels, this update could also help the RBI gather data more efficiently from banks and payment providers, without directly burdening small exporters.

So, what does this mean for businesses on the ground? Let's look at how different exporters will experience this change.

How exporters are impacted by the new compliance rule

Small businesses and MSMEs: more freedom, less paperwork

How does the RBI's export compliance rule affect small businesses in India? For micro exporters and MSMEs, the change is a clear win. If your outward remittances via Online Payment Gateway Service Providers (OPGSPs) are under ₹10 lakh, you're no longer required to submit periodic data or navigate complex export documentation via banks.

Let's say you're a freelance developer in Pune receiving payments of ₹3 lakh each from two international clients. Under the old rule, you'd need to align with Form Softex filing or coordinate with your AD bank to justify each inward remittance. Not anymore.

Now, transactions beneath the ₹10 lakh mark can be settled smoothly through authorised OPGSPs, reducing both time and operational costs. For MSMEs using platforms like PayPal, RazorpayX, or Wise, this means fewer email threads with compliance teams and faster settlements.

Larger exporters: what still applies to them

If your export amounts exceed ₹10 lakh per transaction, no changes have been made. You'll still need to follow the existing RBI export compliance process, file export documentation, and ensure proper inward remittance tracking under traditional procedures.

This includes:

• Filing Shipping Bills (for goods) or Softex forms (for services)
• Verifying payments received in permitted forex
• Working closely with your Authorised Dealer (AD) bank to meet compliance timelines

In short, while threshold relief benefits smaller exporters, mid-sized and large firms must remain diligent in tracking filings, particularly if invoices are split or staggered over time.

What does this mean for fintech and payment aggregators?

Fintech platforms and OPGSPs facilitating export payments now carry more transactional activity below ₹10 lakh. They'll need to maintain stronger systems to detect anomalies and support audits, since banks won't report every transaction.

Additionally, payment providers may be required to develop reporting formats that provide the RBI with aggregated insights, without the need to route every minor transaction through AD banks.

For exporters, this means choosing compliant platforms is more critical than ever. A glitch or non-reported transaction can still attract scrutiny, even if it's below the threshold. While smaller exporters may have less paperwork, care in platform selection and record-keeping remains critical.

Now that you understand how this change may impact your business, let's examine when the rule takes effect and what steps you should take to prepare for it.

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When the new rule takes effect, and how to prepare

Effective implementation date

The updated rule from the Reserve Bank of India took effect on April 1, 2024. This update was announced through the RBI's official circular (AP Dir Series Circular No. 23) issued on March 11, 2024. From that date forward, export transactions up to ₹10 lakh routed through Online Payment Gateway Service Providers (OPGSPs) are exempt from traditional compliance documentation.

So, if you're receiving payments for professional services or e-commerce exports under this threshold, the new norms already apply to you. You don't need to wait or file anything separately to take advantage of the change. Please ensure that your transaction totals fall within the prescribed limit per remittance.

Steps businesses should immediately take

While this RBI move reduces paperwork, you still need to refine your internal processes and remain audit-ready. Here are key steps to help you stay prepared:

• Review ongoing and upcoming invoices to ensure each export remittance is under ₹10 lakh if you'd like to use the simplified route.
• Notify your accountant and in-house finance staff so they can adjust workflows accordingly and stop filing unnecessary forms.
• Verify if your current OPGSP (such as Razorpay, Stripe, or Payoneer) is compliant with RBI norms and prepared for any audit requests.
• Update internal export tracking spreadsheets or accounting software to flag remittances that cross the new threshold.

Preparing now means fewer errors later. And if your remittance crosses the threshold even once, switch to complete reporting with your AD bank for that payment. No partial compliance allowed.

Now that you understand when and how the new rule takes effect, it's a good time to review your current export volumes and typical transaction sizes. If most of your remittances fall below ₹10 lakh, you may no longer need to provide detailed documentation through your bank for every payment.

Your next step involves updating internal checklists, notifying your finance and ops teams, and adapting bookkeeping tools if necessary. It's also smart to inform your payment partners, especially if you're using OPGSPs, so everyone stays aligned with the updated process.

This will help you avoid delays and compliance mismatches while giving you more bandwidth to focus on actual growth. RBI's new export compliance rule reduces red tape for smaller exporters—use that freedom to pursue new markets with less friction and greater clarity.

Frequently asked questions about the RBI’s new export compliance?

1) What are the key changes in the RBI's new export compliance rule for small businesses?

The RBI raised the minimum threshold for export compliance filings routed via OPGSPs from $1,000 to ₹10 lakh per transaction. Small exporters below this limit no longer need to submit shipping bills or other traditional export documents through their AD bank.

2) How does the RBI's export compliance rule affect exporters in India?

Smaller exporters benefit from reduced paperwork and faster processing for qualifying transactions. However, exporters with remittances exceeding ₹10 lakh must still adhere to complete documentation and compliance procedures as before.

3) Why did the RBI implement a new export compliance rule from $1,000 to ₹10 lakh?

The change aims to reduce unnecessary regulatory load for micro and small exporters, encourage digital exports, and align reporting thresholds with global practices. It also supports the government’s broader ease-of-doing-business agenda.

4) When will the new RBI export compliance regulations take effect?

The updated regulations took effect on April 1, 2024, as per RBI’s circular issued on March 11, 2024. You can refer to AP Dir Series Circular No. 23 on RBI’s official website for details.

Disclaimer: This blog is for informational purposes only. Please consult your bank or legal advisor for RBI export compliance advice.

Contributed by Denila Lobo

Denila is a content writer at Winvesta. She crafts clear, concise content on international payments, helping freelancers and businesses easily navigate global financial solutions.