Reserve Bank of India exempts individuals from reporting personal foreign transactions; FAQs to be issued soon

Key facts

• Reserve Bank of India (RBI) Governor Sanjay Malhotra clarified on October 7, 2026 that individuals need not report transactions of a personal nature, such as paying for TV channels, apps, journals or newspapers, or earning from services like tutoring or small software work from abroad, irrespective of the amount, under the new Foreign Exchange Management (Export and Import of Goods and Services) Regulations.
• The unified Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 came into effect on October 1, 2026, and were published in January 2026.
• RBI will shortly publish a Frequently Asked Questions (FAQ) document to clarify reporting requirements and quell misunderstandings around the new export declaration form.
• Reporting on the RBI's Import Export Data Processing and Monitoring System will be done by banks and authorised dealers (ADs), not by individual exporters or importers, who only need to provide the required information to their banks.
• For transactions of up to ₹10 lakh per bill, small exporters and entities can submit a self-declaration instead of uploading an invoice; this is an alternative to an invoice, not an exemption from reporting.
• The changes aim to liberalise trade transaction handling by ADs, simplify processes, and bring services export reporting in line with the existing merchandise trade reporting framework.