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RBI Discontinues 17 FEMA Returns/Reports to Ease Compliance

Current · Source: Reserve Bank of India · RBI/2020-21/66 · issued 13 Nov 2020 · ~2 min read
Quick answerRBI has discontinued 17 returns/reports under FEMA, effective November 13, 2020, to reduce compliance costs and improve ease of doing business. AD banks may bring the contents to the notice of their constituents.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore, Priya, used to spend hours each month filling out and mailing a paper report about foreign exchange transactions. After November 13, 2020, she stopped that report because RBI removed it. Now she only needs to file Form DRR online through the FIRMS system, saving her time and reducing her bank's costs.

What changed

RBI reviewed existing FEMA reporting forms and decided to discontinue 17 specific returns/reports listed in the annexure, effective November 13, 2020. The Master Direction on Reporting under FEMA (January 1, 2016) will be updated accordingly. Hardcopy filing of Form DRR is discontinued, but domestic custodians must continue electronic reporting via FIRMS.

What it means for you

Banks and authorized persons will see a reduction in monthly, fortnightly, and daily reporting burdens, lowering compliance costs. This change simplifies foreign exchange reporting, particularly for AD Category-I and II banks, FFMCs, custodians, and asset management companies. However, electronic reporting for discontinued items like Form DRR remains mandatory.

What you must do

Who it affects

AD Category-I banks, AD Category-II banks, Full-Fledged Money Changers (FFMCs), Custodian banks, Asset Management Companies, All authorized persons under FEMA

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Which specific reports have been discontinued?

17 reports are discontinued, including monthly statements on FII/FPI investments, FVCI inflows/outflows, ADR/GDR movements, and certain transaction-based reports for AD Category-II banks and FFMCs. The full list is in the circular's annexure.

Is the hardcopy filing of Form DRR still required?

No, hardcopy filing of Form DRR is discontinued. However, domestic custodians must continue to report Form DRR electronically on the FIRMS application as per FEM (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019.

When did this change take effect?

The discontinuation is effective immediately from the date of the circular, November 13, 2020. AD banks should implement the changes without delay.

📜 Read the original circular — full text as issued by RBI
RBI/2020-21/66 A.P. (DIR Series) Circular No. 05 November 13, 2020 To All Authorised Persons Madam/Sir Discontinuation of Returns/Reports under Foreign Exchange Management Act, 1999 The attention of Authorised Persons is invited to the Master Direction - Reporting under Foreign Exchange Management Act, 1999 dated January 01, 2016 , as amended from time to time, and other reporting related instructions issued by the Reserve Bank of India. 2. With a view to improve the ease of doing business and reduce the cost of compliance, the existing forms and reports prescribed under FEMA, 1999, were reviewed by the Reserve Bank. Accordingly, it has been decided to discontinue the 17 returns/reports as listed in the Annexure with immediate effect. 3. The Master Direction - Reporting under Foreign Exchange Management Act, 1999 dated January 01, 2016 , shall accordingly be updated to reflect the above changes. AD banks may bring the contents of this circular to the notice of their constituents. 4. The directions contained in this circular have been issued under Section 10(4) and 11(2) 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 faithfully, (Ravinder Singh Amar) Chief General Manager Annexure List of Discontinued Reports Sl No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/66 · issued 13 Nov 2020. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal reporting systems to stop generating the 17 discontinued returns/reports.
  • Ensure continued electronic filing of Form DRR on FIRMS application by domestic custodians as per existing regulations.
📜 Compliance
  • Bring the contents of this circular to the notice of constituents, including AD Category-II banks and FFMCs.
  • Review and align compliance processes with the updated Master Direction on FEMA Reporting.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (AD Category-I banks, AD Category-II banks, Full-Fledged Money Changers (FFMCs), Custodian banks, Asset Management Companies, All authorized persons under FEMA), your first concrete step on “RBI Discontinues 17 FEMA Returns/Reports to Ease Compliance” is: “Update internal reporting systems to stop generating the 17 discontinued returns/reports.” (RBI issued this 13 Nov 2020).

  1. Circular: RBI/2020-21/66 -- RBI Discontinues 17 FEMA Returns/Reports to Ease Compliance
  2. Issued: 13 Nov 2020
  3. Action required: Update internal reporting systems to stop generating the 17 discontinued returns/reports.
  4. Action required: Bring the contents of this circular to the notice of constituents, including AD Category-II banks and FFMCs.
  5. Action required: Ensure continued electronic filing of Form DRR on FIRMS application by domestic custodians as per existing regulations.
  6. Action required: Review and align compliance processes with the updated Master Direction on FEMA Reporting.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11994&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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