Individuals spared from new FEMA reporting requirement: RBI clarifies
RBI Governor Sanjay Malhotra clarified that individuals conducting personal forex transactions are exempt from new FEMA reporting requirements. The central bank aims to reduce confusion for freelancers and small exporters by providing self-declaration options for transactions under ₹10 lakh.
Why it matters
This clarification prevents unnecessary regulatory burden on individual service providers and small-scale exporters, supporting the gig economy and international trade.
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.
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