New FEMA rules: RBI clarifies what freelancers and small exporters need to report; FAQs to be released soon

New FEMA trade rules that came into effect from 1 October have triggered concerns among freelancers, content creators and small service exporters over whether they now need to file additional export declarations for payments received from overseas.

The Reserve Bank of India (RBI) has now clarified that individuals undertaking transactions of a personal nature are not covered by these reporting requirements.

RBI Governor Sanjay Malhotra and Deputy Governor Rohit Jain made the clarification at the October monetary policy press conference. The RBI also said small exporters with transactions of up to ₹10 lakh per bill can use a self-declaration and invoice, while banks and authorised dealers, rather than individual exporters and importers, will handle reporting on the IEDPMS portal.

Are individuals required to report their personal imports and exports?

Rohit Jain, Deputy Governor, RBI, said the new trade regulations are intended to liberalise the handling of trade matters by authorised dealers, simplify processes and promote ease of doing business.

Services exports and imports have now been included for reporting purposes. However, individuals are not required to comply with reporting requirements for contracts of a personal nature, Jain clarified.

Jain said there appeared to be some misunderstanding about the reporting obligations and that the RBI would clarify the requirements through an FAQ.