EconomySaturday, 17 October 2026·The Hindu - National
RBI clarifies FEMA reporting rules for individuals and small exporters
RBI said personal forex transactions are exempt from the new FEMA reporting requirement, while small exporters can use self-declaration for bills up to ₹10 lakh.
Key highlights
Direct fact
In October 2026, RBI Governor Sanjay Malhotra clarified in Mumbai that the new FEMA reporting rules notified in January 2026 and effective from 1 October 2026 do not apply to individuals undertaking forex transactions for personal purposes.
Key specifics
- Personal imports, personal exports, and personal forex spending or earnings are exempt from reporting, regardless of amount.
- Small exporters can use self-declaration and invoice for bills up to ₹10 lakh per bill, not per year.
- Individual exporters and importers need not file reports directly on the Import Data Processing and Monitoring System (IEDPMS).
- Banks and authorised dealers (ADs) will undertake the reporting on behalf of individuals and small traders.
- The RBI said the new framework brings services exports and imports into the reporting system to improve granular trade data.
Exam lens
Question type: RBI and foreign exchange regulation, FEMA reporting, IEDPMS, self-declaration limit of ₹10 lakh, October 2026 clarification. TNPSC may ask which transactions are exempt and who files the report.