RBI to Clarify Forex Reporting Rules Soon | Today’s news
The Reserve Bank of India (RBI) will soon issue clarifications on its new foreign exchange rules as the norms have created confusion for individuals conducting face-to-face transactions, Deputy Governor Rohit Jain said on Wednesday.
“Individuals are not included with respect to the reporting requirements for contracts of a personal nature,” Jain told a news conference after the monetary policy decision. He added that the central bank would soon clarify the matter through an FAQ.
In January, the Central Bank revised its ten-year-old foreign exchange rules and introduced the export and import of goods and services under a single regulatory framework. In October, the Foreign Exchange Management (Export and Import of Goods and Services) Regulations 2026 came into force, announced on 13 January, replacing the 2015 Regulations.
New forex rules
The revision, which followed two rounds of public consultation and nearly two years of negotiations, aims to simplify procedures and reduce compliance burdens, particularly for smaller exporters and importers. This also gives the authorized dealer banks more responsibility for managing day-to-day business-related matters.
But the standards have raised concerns among freelancers, content creators and small service exporters about whether they now have to file additional export declarations for payments received from overseas.
RBI Governor Sanjay Malhotra said individuals who subscribe to TV channels, apps, magazines or newspapers, as well as those who provide services abroad such as tutoring or small software services, will not have to comply with the reporting requirements aimed at exporters and importers.
According to the RBI notification, exporters of goods will continue to declare the consignment values through the Export Declaration Form (EDF), which is part of the shipping bills at EDI ports. Service exporters will now have a defined 30-day window from invoicing to declaration submission with flexibility for consolidated monthly submissions and bank-approved extensions.
Software exports have been specifically included under the definition of services, with authorized resellers and Software Technology Parks of India (STPI) recognized as specified bodies.
For smaller transactions up to max ₹10 lakh, exporters and importers will be able to close the backlog in RBl’s export and import tracking systems based on self-declarations, including quarterly bulk submissions, which will ease the procedural burden on micro, small and medium enterprises (MSMEs) and service exporters, according to the order.
“For small and exporters, if the quantity is small, up to ₹10 lakhs per account, not annually, per account, ₹10 lakh, then self declaration and invoice will suffice. There are some concerns about uploading and providing invoices, but until ₹10 lakh, an alternative has been given which is in the form of a self-declaration,” Malhotra said.
Jain described the broader changes as a “step forward” in simplifying trade regulations and reducing the burden on authorized dealers as well as exporters and importers.
The new framework maintains the existing 15-month period for realization and repatriation of proceeds from exports of goods and services, while extending it to 18 months if exports are invoiced or settled in Indian rupees.
