RBI governor Sanjay Malhotra yesterday eased concerns over the new foreign exchange reporting framework, clarifying that individuals undertaking transactions of a personal nature would not have to report them. He also cited earnings from overseas tutoring and small software assignments among the transactions that would not require reporting.

The clarification follows concerns among freelancers, creators, and small service exporters about additional paperwork under the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026. The rules, which took effect on October 1, bring goods and services trade under a unified framework.

Malhotra said banks and authorised dealers would handle reporting to the RBI, while exporters could use self-declaration for bills of up to ₹10 Lakh — a threshold that applies per bill, not to annual earnings. For established SaaS startups already reporting software exports, industry participants expect mainly procedural changes.

Malhotra said individuals’ transactions of a personal nature do not require reporting, irrespective of the amount. Examples include subscriptions to apps, television channels, journals, and newspapers.

His clarification also covered individuals receiving payments for overseas tutoring and small software assignments, extending the reassurance beyond personal spending.

Deputy governor Rohit Jain said the framework aims to simplify trade processes and give authorised dealers greater flexibility. Acknowledging confusion over reporting obligations, he said the RBI would issue FAQs to clarify the requirements.

These FAQs are expected to explain how the clarification applies across different freelance and creator business arrangements. 

Software exporters previously used SOFTEX, while goods exports followed a separate declaration process.

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