Individuals spared from new FEMA reporting requirement: RBI clarifies

Individuals undertaking forex transactions for personal purposes will not be covered by the Reserve Bank of India’s (RBI) new FEMA reporting requirements, Governor Sanjay Malhotra clarified on Wednesday, as concerns grew among freelancers, content creators and small service exporters.

The RBI said it will soon issue a set of FAQs to clear the confusion surrounding the new trade regulations, notified in January and effective from October 1, 2026.

“Individuals are not required to report personal imports or exports, or personal earnings or spending in forex, while small exporters with bills up to ₹10 lakh can use self-declaration and an invoice,” Mr. Malhotra said in response to a reporter’s question.

He clarified that individuals undertaking imports or exports of a personal nature will not have to report such transactions, irrespective of the amount.

This could include payments for subscriptions to television channels, apps, journals or newspapers. It could also cover individuals providing services to overseas clients, such as tutoring or small software services, and receiving payments for those services, according to him.

The ₹10 lakh threshold for small exporters applies per bill, not annually, Mr. Malhotra added. The self-declaration and invoice route are alternative to the more detailed reporting process.

The governor also clarified that individual exporters and importers will not have to directly file reports on the Import Data Processing and Monitoring System (IEDPMS). Banks and authorised dealers (ADs) will undertake the reporting on their behalf.

The new framework brings services exports and imports within the reporting framework. The RBI said some of the required information was already being provided by customers while making payments, while the additional data sought under the new system would improve reporting and the availability of granular data on services trade.