Individuals exempt from reporting under new FEMA trade rules, RBI says

Mumbai: The Reserve Bank of India has clarified that personal transactions will not be subject to reporting under the new foreign exchange trade rules, aiming to ease concerns about the compliance burden from the updated framework, according to RBI Governor Sanjay Malhotra and Deputy Governor Rohit Jain. The central bank will soon release frequently asked questions to further clarify the scope and address any confusion over reporting obligations.

Routine personal transactions like subscription payments for TV channels, apps, journals, and newspapers, as well as payments for tutoring, small software-related assignments, and other individual services, will not require reporting. Similarly, individuals receiving overseas payments for such services would also be exempt. For smaller export transactions, exporters handling up to ₹10 lakh per bill can now provide a self-declaration rather than submitting invoices and supporting documents.

The new trade regulations, introduced in January with an October 1 implementation date, aim to simplify processes and ease doing business, while also extending reporting requirements to services exports and imports.