RBI to clarify forex reporting rules soon

The Reserve Bank of India (RBI) plans to clarify its new foreign exchange rules to address confusion caused by the new regulations, Deputy Governor Rohit Jain stated on Wednesday. The RBI recently revamped its decade-old foreign exchange rules, unifying the regulatory framework for exports and imports of goods and services. The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, implemented in October, aim to simplify procedures and reduce compliance burdens, especially for smaller exporters and importers.

The changes, which came into effect in October after consultations, will see authorized dealer banks take on more responsibility for managing routine trade-related matters. However, the new rules have raised concerns among freelancers, content creators, and small service exporters about potential additional export declarations for overseas payments.

The RBI has clarified that individuals providing services abroad, such as tutoring or software development, are not required to comply with the reporting requirements intended for exporters and importers. For service exports, exporters have a 30-day window from invoice issuance to file declarations, with options for consolidated monthly filings and bank-approved extensions.

Smaller transactions of up to ₹10 lakh can be covered by self-declarations, easing procedural burdens for micro, small, and medium enterprises (MSMEs) and service exporters.