RBI says personal service transactions need no FEMA reporting
In short
The RBI said people do not need to report personal service transactions under the new FEMA rules. It also said routine payments for services and subscriptions are exempt, and export transactions up to ₹10 lakh can use self-declarations.
This should make paperwork easier for individuals and smaller exporters. The RBI said it will soon issue an FAQ, so some details are still not fully clear.
What the reporting says
The RBI said personal service transactions do not need reporting under new FEMA rules, according to publisher-supplied summaries. Governor Sanjay Malhotra said routine payments for services and subscriptions are exempt from reporting, and smaller export transactions of up to ₹10 lakh may rely on self-declarations. The immediate consequence is lower compliance burden, while the exact FAQ wording is still to come.
Why it matters
The RBI’s clarification eases reporting requirements for personal transactions and smaller export payments under the new foreign exchange rules, as reflected in the publisher-supplied summaries. It specifically mentions routine service and subscription payments, plus export transactions up to ₹10 lakh using self-declarations. The move matters for individuals and smaller businesses because it reduces compliance work, but the final FAQ has not yet been issued.