BT Explainer: Why freelancers and small service exporters are still confused about RBI's forex reporting rules
RBI Governor Sanjay Malhotra clarified that individuals are exempt from the new export declaration requirements, but differing bank practices and delays in issuing FAQs continue to leave freelancers and small service exporters uncertain about compliance
- Oct 26, 2026,
- Updated Oct 26, 2026 3:49 PM IST
A recent post by content creator Ramesh Srivats gained considerable traction. Srivats, who consults for an American company, noted that soon after receiving an inward remittance for his October invoice, he received an email from his bank, seeking all the details required under the export declaration rules of the Foreign Exchange Management (FEMA) Regulations, which came into effect on October 1.
“They also sent a PDF with a bunch of request letters. I am supposed to choose the right letter, print, sign, scan and submit. At least for me, most of the details are constant. One client, one payment. If it’s a one-time exercise, fine. But, these details have to be given month after month. Else, no payment will be credited,” he wrote.
Srivats later updated his post to say that his bank had clarified he did not need to file an export declaration form (EDF) as an individual and that the email had been sent in error.
However, this confusion is unsettling individual creators, freelancers and small exporters who provide services to foreign clients.
This is happening more than 20 days after Reserve Bank of India Governor Sanjay Malhotra clarified that individuals were not required to submit the EDF or related details under the new regulations.
Read More: RBI clears the air on new forex reporting rules: Framework does not apply to individuals
What do the new FEMA regulations mandate?
The new RBI rules under the Foreign Exchange Management Act, which took effect on October 1, require all service exporters to file an EDF declaring the value of each export transaction.
The EDF must be submitted through the bank handling the foreign exchange transaction, generally within 30 days after the end of the month in which the invoice was issued.
Earlier, goods exporters were required to file an EDF at the time of export, while no such declaration was required for services other than software exports. That changed on October 1.
Essentially, exporters must inform their bank about the services they provide to an overseas customer and the value of those services.
The additional compliance requirement raised concerns, particularly among individuals and freelancers who had never completed such formalities before.
In Case You Missed It: RBI forex reporting rules: Freelancers, service exporters face confusion over EDF filings
What did the RBI clarify?
Responding to a Business Today query on October 7, RBI officials clarified that individuals were not covered by the reporting requirements.
“If you are subscribing to a TV channel or an app, or to some journals or newspapers, or you are providing services as an individual outside, could be tutoring services, could be some small software etc., and getting paid for it, those individuals are not required to report,” RBI Governor Sanjay Malhotra had stated.
He added that, even for exporters, a self-declaration would suffice for bills of up to Rs 10 lakh.
Why is there still confusion?
The Reserve Bank was expected to issue FAQs to clarify the forex reporting requirements, but they are still awaited. The delay may be adding to the confusion, as banks and chartered accountants are interpreting the rules differently.
“As per our understanding, these norms are not applicable to individual transactions and we are in active discussion with FEDAI (Foreign Exchange Dealers’ Association) on that matter,” Devang Gheewalla, group CFO of Kotak Mahindra Bank, told Business Today. He said the bank was not currently insisting on such documentation from individuals.
However, many banks still lack standard operating procedures in this regard. Industry officials say FAQs from the Reserve Bank may therefore be necessary.
According to a consultant, banks are following different approaches while a formal clarification from the RBI is awaited, adding to the confusion.
The RBI and the Indian Banks’ Association are expected to issue FAQs on the matter soon.
The India SME Forum recently sought a 90-day relaxation in EDF filing requirements for small service exporters until a simpler compliance mechanism is finalised.
A recent post by content creator Ramesh Srivats gained considerable traction. Srivats, who consults for an American company, noted that soon after receiving an inward remittance for his October invoice, he received an email from his bank, seeking all the details required under the export declaration rules of the Foreign Exchange Management (FEMA) Regulations, which came into effect on October 1.
“They also sent a PDF with a bunch of request letters. I am supposed to choose the right letter, print, sign, scan and submit. At least for me, most of the details are constant. One client, one payment. If it’s a one-time exercise, fine. But, these details have to be given month after month. Else, no payment will be credited,” he wrote.
Srivats later updated his post to say that his bank had clarified he did not need to file an export declaration form (EDF) as an individual and that the email had been sent in error.
However, this confusion is unsettling individual creators, freelancers and small exporters who provide services to foreign clients.
This is happening more than 20 days after Reserve Bank of India Governor Sanjay Malhotra clarified that individuals were not required to submit the EDF or related details under the new regulations.
Read More: RBI clears the air on new forex reporting rules: Framework does not apply to individuals
What do the new FEMA regulations mandate?
The new RBI rules under the Foreign Exchange Management Act, which took effect on October 1, require all service exporters to file an EDF declaring the value of each export transaction.
The EDF must be submitted through the bank handling the foreign exchange transaction, generally within 30 days after the end of the month in which the invoice was issued.
Earlier, goods exporters were required to file an EDF at the time of export, while no such declaration was required for services other than software exports. That changed on October 1.
Essentially, exporters must inform their bank about the services they provide to an overseas customer and the value of those services.
The additional compliance requirement raised concerns, particularly among individuals and freelancers who had never completed such formalities before.
In Case You Missed It: RBI forex reporting rules: Freelancers, service exporters face confusion over EDF filings
What did the RBI clarify?
Responding to a Business Today query on October 7, RBI officials clarified that individuals were not covered by the reporting requirements.
“If you are subscribing to a TV channel or an app, or to some journals or newspapers, or you are providing services as an individual outside, could be tutoring services, could be some small software etc., and getting paid for it, those individuals are not required to report,” RBI Governor Sanjay Malhotra had stated.
He added that, even for exporters, a self-declaration would suffice for bills of up to Rs 10 lakh.
Why is there still confusion?
The Reserve Bank was expected to issue FAQs to clarify the forex reporting requirements, but they are still awaited. The delay may be adding to the confusion, as banks and chartered accountants are interpreting the rules differently.
“As per our understanding, these norms are not applicable to individual transactions and we are in active discussion with FEDAI (Foreign Exchange Dealers’ Association) on that matter,” Devang Gheewalla, group CFO of Kotak Mahindra Bank, told Business Today. He said the bank was not currently insisting on such documentation from individuals.
However, many banks still lack standard operating procedures in this regard. Industry officials say FAQs from the Reserve Bank may therefore be necessary.
According to a consultant, banks are following different approaches while a formal clarification from the RBI is awaited, adding to the confusion.
The RBI and the Indian Banks’ Association are expected to issue FAQs on the matter soon.
The India SME Forum recently sought a 90-day relaxation in EDF filing requirements for small service exporters until a simpler compliance mechanism is finalised.