What changed
RBI announced the discontinuation/merger of the 'Details of guarantee availed and invoked from non-resident entities' return. Additionally, 21 returns currently submitted via paper or email will be converted to online filing, covering areas like FII flows, MTSS, NRO remittances, diamond imports, and ESOP reporting.
What it means for you
Banks and authorized persons must prepare to shift from manual to digital submission for these returns, reducing paperwork and streamlining compliance. The discontinuation of the guarantee return simplifies reporting for non-resident guarantee transactions. This is part of RRA 2.0's effort to ease regulatory burden.
What you must do
- Identify which of your current returns are in Annex 1 (to be discontinued/merged) and Annex 2 (to go online).
- Update internal systems and processes to support online filing for the 21 returns listed in Annex 2.
- Train staff on the new online submission procedures once RBI notifies the exact implementation dates.
- Monitor RBI notifications for the exact dates of discontinuation/merger and online filing go-live.
Who it affects
All Authorised Persons (AD Category-I & II banks), Full-Fledged Money Changers (FFMCs), Indian agents under Money Transfer Service Scheme (MTSS), Entities dealing with non-resident guarantees, FII/FPI investment reporting desks, Diamond importers and exporters
Which return is being discontinued or merged?
Only one return is listed for discontinuation/merger: 'Details of guarantee availed and invoked from non-resident entities' (Annex 1).
What happens to the returns that are moving online?
Twenty-one returns currently submitted via paper or email will be converted to online filing. This includes FII weekly reports, MTSS statements, NRO remittance details, diamond import reports, and ESOP reporting, among others.