RBI Rationalises FEMA Reporting for Authorised Persons

A.P. (DIR Series) Circular No.17, Dated 24-06-2026

The Reserve Bank of India (RBI) has rationalised the reporting requirements applicable to Authorised Persons under the Foreign Exchange Management Act, 1999 (FEMA). The amendments have been issued under the Foreign Exchange Management (Authorised Persons) Regulations, 2026 and prescribe revised reporting formats and compliance requirements.

The objective of the amendments is to simplify reporting, reduce compliance burden and streamline the regulatory framework applicable to Authorised Persons dealing in foreign exchange transactions.

1. Revised Reporting Framework Introduced

RBI has prescribed revised reporting formats for Authorised Persons under the amended framework.

The revised reporting structure is intended to make regulatory submissions more efficient and aligned with current supervisory requirements under FEMA.

2. Revision of FLM-8 Return

One of the key changes introduced by RBI is the revision of the FLM-8 return.

The revised format is expected to capture relevant information more structure and improve consistency in reporting by Authorised Persons.

3. Prior Approval Requirement for Write-Off Discontinued

RBI has discontinued the requirement of obtaining prior approval for the write-off of foreign currency notes exceeding USD 2,000.

This change is aimed at simplifying operational procedures for Authorised Persons and reducing the need for case-by-case regulatory approvals.

4. Quarterly Reporting of Franchisee and Sub-Agent Details

The amendments prescribe quarterly reporting of details relating to franchisees and sub-agents.

This requirement will help the RBI maintain up-to-date supervisory information on the network of entities operating through Authorised Persons.

5. Discontinuation of Specified Returns and Forms

RBI has also discontinued certain specified returns, forms and reporting requirements under FEMA.

This rationalisation seeks to remove duplication, reduce unnecessary compliance filings and improve ease of reporting for Authorised Persons.

6. Objective of the Amendments

The amendments aim to:

Rationalise FEMA reporting requirements;
Simplify compliance obligations for Authorised Persons;
Reduce duplication in regulatory filings;
Update reporting formats;
Improve supervisory efficiency; and
Ease operational procedures relating to foreign exchange transactions.

7. Expected Impact

The revised framework is expected to reduce the compliance burden on Authorised Persons while ensuring that RBI continues to receive relevant regulatory information in a structured and timely manner. It also supports greater ease of doing business in foreign exchange operations.

8. Key Takeaway

RBI has rationalised reporting requirements under FEMA, 1999 for Authorised Persons by revising the FLM-8 return, discontinuing prior approval for write-off of foreign currency notes exceeding USD 2,000, prescribing quarterly reporting of franchisee and sub-agent details, and discontinuing specified returns, forms and reporting requirements under FEMA.