RBI Governor says forex transactions of personal nature remain outside new FEMA reporting
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- RBI clarifies personal forex transactions exempt from new service exports reporting effective Oct 1; central bank to issue FAQs.
- Small exporters with per-bill turnover up to Rs 10 lakh may use self-declaration; banks handle portal reporting via declaration forms.
- FEMA regulations issued in Jan 2026; nine-month lead-in before Oct 1 implementation.
RBI Governor Sanjay Malhotra clarified that personal forex transactions fall outside the new service exports reporting regime, which commenced on October 1. The central bank pledged to release an FAQ to resolve prevailing confusion.
The remarks follow social media commentary from freelancers, content creators, and small service providers who described the FEMA reporting rules as a barrier to ease of doing business.
Regulatory Scope and Individual Exemptions
Malhotra specified that individuals importing services such as app subscriptions, journal editions, or providing tutoring and small software services are not required to report those transactions.
Deputy Governor Rohit Jain noted that small exporters with per-bill transactions up to Rs 10 lakh may use a self-declaration mechanism.
The regulations were promulgated in January 2026, providing a nine-month lead-in before the October 1 effective date.
Reporting Obligations and Timeline
The Governor stressed that banks bear the reporting obligation on the portal; exporters are required only to submit a declaration form.
FAQs
Who is exempt from the new service exports reporting requirements?
Individuals undertaking personal forex transactions are not covered by the new reporting requirements, as clarified by the RBI Governor.
When did the new FEMA reporting requirements commence?
The new service exports reporting requirements commenced on October 1, 2026.
What is the threshold for small exporters to use self-declaration?
Small exporters with per-bill transactions up to Rs 10 lakh have the option to use a self-declaration mechanism.
Who is responsible for filing the reporting on the portal?
Banks are responsible for filing the reporting on the portal; exporters are required only to submit a declaration form.
Will the RBI issue additional guidance on the new requirements?
The central bank pledged to release an FAQ to clarify prevailing confusion and regulatory expectations.
