RBI To Clarify Forex Reporting Rules Soon

(MENAFN- Live Mint) The Reserve Bank of India (RBI) will soon issue a clarification on its new foreign exchange rules, as the norms have created confusion for individuals undertaking personal transactions, deputy governor Rohit Jain said on Wednesday.

“The individuals are not included with respect to the reporting requirements for the contracts of a personal nature,” Jain said at a press conference post the monetary policy decision. He added that the central bank would clarify the matter shortly through an FAQ.

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In January, the central bank overhauled its decade-old foreign exchange rules, bringing exports and imports of goods and services under a unified regulatory framework. The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, notified on 13 January, came into force in October, replacing the 2015 regulations.

New forex rules

The overhaul, which followed two rounds of public consultation and nearly two years of deliberations, aims to simplify procedures and reduce compliance burdens, particularly for smaller exporters and importers. It also gives authorized dealer banks greater responsibility for managing routine trade-related matters.

However, the norms triggered concerns among freelancers, content creators and small service exporters over whether they now need to file additional export declarations for payments received from overseas.

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RBI governor Sanjay Malhotra said individuals subscribing to television channels, apps, journals or newspapers, as well as those providing services abroad such as tutoring or small software services, would not be required to comply with the reporting requirements aimed at exporters and importers.

According to the RBI notification, exporters of goods will continue to declare shipment values through the Export Declaration Form (EDF) embedded in shipping bills at EDI ports. Service exporters will now have a defined 30-day window from invoice issuance to file declarations, with flexibility for consolidated monthly filings and bank-approved extensions.

Software exports have been explicitly brought under the definition of services, with authorized dealers and Software Technology Parks of India (STPI) recognized as specified authorities.

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For smaller transactions of up to ₹10 lakh, exporters and importers will be allowed to close outstanding entries in RBl's export and import monitoring systems based on self-declarations, including quarterly bulk submissions, easing procedural burdens for micro, small, and medium enterprises (MSMEs) and service exporters, according to the order.

“For small, even the exporters, if the amount is small, up to ₹10 lakh per bill, not annually, per bill, ₹10 lakh, then a self-declaration will suffice and an invoice. There is some concern about uploading and giving invoices, but up to ₹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.

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The new framework retains the existing 15-month timeline for realization and repatriation of export proceeds for goods and services, while extending it to 18 months where exports are invoiced or settled in Indian rupees.

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