What changed
Forms submitted on the FIRMS portal are now auto-acknowledged with a time stamp and email confirmation. AD banks must verify these forms within five working days based on uploaded documents. The system automatically computes Late Submission Fee (LSF) for delays up to three years and directs applicants to pay the concerned RBI Regional Office; delays beyond three years require compounding of contravention.
What it means for you
This streamlines foreign investment reporting by reducing manual intervention and speeding up acknowledgment. AD banks now have a clear five-day verification window and must guide applicants on LSF or compounding. It reduces ambiguity in delayed reporting and ensures consistent enforcement of timelines.
What you must do
- Update internal SOPs to verify auto-acknowledged SMF forms within five working days.
- Train staff to identify delay periods and advise applicants on LSF payment or compounding as per system output.
- Ensure FIRMS portal access and familiarity with the updated manual for accurate processing.
- Monitor system-generated emails to applicants and coordinate with RBI Regional Offices on LSF realization.
Who it affects
Category-I Authorised Dealer Banks, Foreign investors and their representatives, RBI Regional Offices handling LSF and compounding
What happens if a form is submitted with a delay of less than three years?
The system calculates the Late Submission Fee (LSF) and emails the applicant and the concerned RBI Regional Office. The AD bank approves the form once LSF is paid and status updated by the RO.
What is the process for delays exceeding three years?
The AD bank approves the form subject to compounding of contravention. The applicant must then approach RBI with a compounding application.
How will applicants know if their form is rejected?
The AD bank's rejection remarks are communicated via a system-generated email, and the status can also be viewed on the FIRMS portal.