Modification of Returns and Reporting Requirements under FEMA
RBI notification RBI/2026-27/174 · 24 Jun 2026
Official title
Modification of Returns / Reporting requirements under FEMA, 1999
RBI notification RBI/2026-27/174 · 24 Jun 2026
Official title
Modification of Returns / Reporting requirements under FEMA, 1999
Summary
Check the official recordThe Reserve Bank of India rationalizes reporting requirements for Authorised Persons under the Foreign Exchange Management Act, 1999. The circular introduces a revised format for FLM-8 to include foreign currency note write-offs and removes the prior approval requirement for write-offs exceeding USD 2000. Entities using FETERS for Nostro account reporting no longer submit FLM-8. Authorised Persons and Indian Agents under MTSS must submit lists of franchisees and sub-agents within 15 days after each calendar quarter. The Reserve Bank discontinues several registers and returns, including FLM-1 to FLM-7. Entities must still maintain accurate transaction records for inspection. These changes update the Master Direction on Money Changing Activities and Reporting under FEMA.
What you must do
Key dates
Who is affected
Thresholds
Exceptions
RBI/2026-27/174 A.P. (DIR Series) Circular No.17 June 24, 2026
To All Authorised Persons
Madam / Sir,
Modification of Returns / Reporting requirements under FEMA, 1999
Attention of Authorised Persons is invited to the provisions contained in the Foreign Exchange Management (Authorised Persons) Regulations, 2026, Master Direction – Money Changing Activities, Master Direction – Money Transfer Service Scheme (MTSS), and Master Direction – Reporting under Foreign Exchange Management Act, 1999, as amended from time to time.
On a review, it has been decided to rationalise certain reporting requirements, and prescribe/modify reporting formats pursuant to the Foreign Exchange Management (Authorised Persons) Regulations, 2026.
The formats for submission of various returns are provided in the Annex to this circular. The following additional instructions shall apply:
i) The revised format of FLM-8 shall also capture details relating to write-off of foreign currency notes. The requirement of obtaining prior approval of the Reserve Bank for write-off of foreign currency notes exceeding USD 2000 has been discontinued. Entities maintaining Nostro accounts and reporting the relevant transactions through FETERS shall not submit FLM-8 returns.
ii) Authorised Persons having franchisee arrangements shall submit a list of such arrangements within 15 days from the end of each calendar quarter.
iii) Indian Agents under MTSS shall submit the list of Sub-Agents on a quarterly basis within 15 days from the end of each calendar quarter.
i) Prescribed formats of registers FLM-1 to FLM-7 under the Master Direction – Reporting under FEMA. However, FFMCs and non-bank AD Category-II entities shall continue to maintain complete and accurate records of all foreign exchange transactions undertaken by them and shall make such records available to the Reserve Bank for inspection/supervisory purposes, as and when required.
ii) Return titled “Quarterly Statement showing summation of Foreign Currency Account opened in India out of export proceeds of Foreign Currency Notes / encashed Travellers’ Cheques.”
iii) Requirement for submission of separate List of Additional Locations under MTSS and the requirement of quarterly confirmation regarding the veracity of the list published on the Reserve Bank’s website.
iv) Return relating to Statement of Collateral under MTSS. Indian Agents shall, however, continue to ensure adequacy of collateral in terms of extant instructions.
Master Direction – Money Changing Activities and Master Direction – Reporting under FEMA are being updated separately to reflect the above changes.
The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours Sincerely,
(N Senthil Kumar) Chief General Manager