RBI eases forex reporting rules for small value service transactions
The central bank has introduced a Rs 1 million threshold and exempted resident individuals from certain declaration requirements for service exports and imports.
The Reserve Bank of India (RBI) notified changes to foreign exchange reporting rules for small-value service exports and imports on Tuesday, according to Moneycontrol.
Under the new rules, resident individuals exporting services are considered to have submitted the Export Declaration Form (EDF) once they give necessary payment details to their authorised dealer bank to credit the funds.
Non-individual exporters will also follow a similar process for service export receipts valued up to Rs 1 million. For amounts exceeding this limit, the current EDF requirements remain in place.
The central bank has also reduced reporting obligations for service imports. Authorised banks must now only enter transaction details into the RBI's monitoring system for importers who are not resident individuals and where the contract or invoice value is above Rs 1 million.
The original reporting rules were notified earlier this year and became effective on October 1.