What changed
RBI has discontinued the prescribed formats of registers FLM-1 to FLM-7 under the Master Direction on FEMA reporting. The requirement for prior RBI approval to write off foreign currency notes exceeding USD 2000 has been removed, and the revised FLM-8 format will capture such write-offs. Several MTSS returns—including the quarterly summation of foreign currency accounts, separate list of additional locations, quarterly confirmation of the RBI website list, and statement of collateral—have been discontinued.
What it means for you
Banks and authorised persons will see reduced paperwork as legacy FLM registers and certain MTSS returns are scrapped. However, FFMCs and non-bank AD Category-II entities must still maintain complete transaction records for RBI inspection. Entities using FETERS for Nostro transactions are exempt from FLM-8. The new quarterly franchisee and sub-agent listing requirements add a fresh compliance timeline.
What you must do
- Stop submitting FLM-1 to FLM-7 registers; ensure FFMCs and non-bank AD Category-II entities retain full transaction records.
- Update internal systems to use the revised FLM-8 format that includes foreign currency note write-offs.
- Discontinue prior RBI approval requests for write-offs above USD 2000; process write-offs per revised FLM-8.
- Submit list of franchisee arrangements within 15 days of each calendar quarter end.
- Indian Agents under MTSS: submit list of sub-agents quarterly within 15 days of quarter end.
Who it affects
All Authorised Persons (AD Category-I, II, FFMCs), Indian Agents under Money Transfer Service Scheme (MTSS), Entities maintaining Nostro accounts and reporting via FETERS
Are FLM-1 to FLM-7 registers completely discontinued for all entities?
Yes, the prescribed formats are discontinued. However, FFMCs and non-bank AD Category-II entities must still maintain complete and accurate records of all foreign exchange transactions for RBI inspection.
Do I still need RBI approval to write off foreign currency notes above USD 2000?
No, the requirement for prior RBI approval has been discontinued. The revised FLM-8 format will now capture the write-off details.
What is the deadline for submitting the quarterly list of franchisees or sub-agents?
The list must be submitted within 15 days from the end of each calendar quarter.