What changed
The annual FLA return format has been revised and a new soft form with built-in validations and user guidance is now available on the RBI website under FEMA Forms. Companies must now fill, validate, and email the return by July 15 each year, instead of submitting a physical copy.
What it means for you
Banks must inform their AD Category-I customers about the revised FLA return format and the new e-filing process. This simplifies compliance for companies, reducing errors through in-built validations, but the July 15 deadline remains unchanged. Banks should ensure their constituents are aware of the updated submission method.
What you must do
- Notify all AD Category-I bank customers about the revised FLA return format and e-filing requirement.
- Direct companies to download the soft form from RBI website (Forms > FEMA Forms) and email the validated return by July 15.
- Advise customers to email queries related to FLA return filing to the designated RBI division.
- Monitor that constituents comply with the new e-filing process to avoid non-compliance.
Who it affects
AD Category-I banks, Indian companies with FDI or overseas investments, RBI's DSIM division
What is the deadline for submitting the revised FLA return?
The annual FLA return must be submitted by July 15 every year, as before. The revised format and e-filing process are effective immediately.
How do companies submit the new FLA return?
Companies must download the easy-to-fill soft form from the RBI website (www.rbi.org.in > Forms > FEMA Forms), fill it with in-built validations, and email the validated form to the Director, External Liabilities and Assets Statistics Division, DSIM, RBI by July 15.
Do the underlying FEMA regulations change with this circular?
No, the circular states that necessary amendments to the relevant FEMA regulations (Notification No. FEMA 20/2000-RB and FEMA 120) will be issued separately. The current circular only revises the return format and submission process.