Notification/Circular No.: S.O. 4870(E), dated 2 September 2026
Applicable Act/Rule: Foreign Exchange Management Act, 1999 | Foreign Exchange Management (Non-Debt Instruments) Rules, 2019
Applicable Section/Rule: Section 46(2), clauses (aa) and (ab); Schedule I, Table, serial number 15.2.5 of the Non-Debt Instruments Rules, 2019
Effective Period: 2 September 2026
The Department of Economic Affairs, Ministry of Finance, has notified the Foreign Exchange Management (Non-Debt Instruments) (Fourth Amendment) Rules, 2026, under Section 46(2)(aa) and (ab) of the Foreign Exchange Management Act, 1999, further amending the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.
The amendment inserts a new serial number 15.2.5 into the Table in Schedule I of the 2019 Rules. Under the new entry, an e-commerce entity is permitted to operate the inventory-based model of e-commerce, but exclusively for the export of goods or products that are manufactured or produced in India. This permission is to be exercised in accordance with the Foreign Trade Policy 2023, read together with the Handbook of Procedures and the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015.
The amendment also carves out an exemption from the existing restrictions: the curbs on Business-to-Consumer (B2C) e-commerce and on the inventory-based model that are stipulated under serial numbers 15.2.1 to 15.2.4 of Schedule I will not apply to exports of goods or products carried out through e-commerce as permitted under the new clause (a). The notification was signed by Dr. Alok Tiwari, Joint Secretary, under file number 1/4/2026-EM.
Link: https://egazette.gov.in/WriteReadData/2026/275964.pdf
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