RBI Ease of Doing Business Initiatives – “Discontinuation of Returns Reports under FEMA, 1999”


Reserve Bank of India (RBI) vide notification / Circular No. RBI/2020-21/66 A.P. (DIR Series) Circular No. 05 dated 13th November, 2020, has published Discontinuation of Returns/ Reports under Foreign Exchange Management Act, 1999 in exercise of the powers conferred under sections 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.

  • The Circular is issued to : All Authorised Persons
  • Aim and Vision of this Circular:

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 A to this Circular as mentioned below with immediate effect.

Provisions of this RBI Circular

The attention of Authorised Persons is invited to the Master Direction – Reporting under Foreign Exchange Management Act, 1999 dated January 01, 2016 (click here), as amended from time to time, and other reporting related instructions issued by the Reserve Bank of India. AD banks may bring the contents of this circular to the notice of their constituents.

Read Also: Companies Act, 2013 compliance calendar for November 2020

List of Discontinued Reports

Annexure A

Sl No.Name of ReportReporting EntityFrequency
1Category-wise transaction where the amount exceeds USD 5000 per transactionAD Category-IIMonthly
2Category-wise, transaction-wise statement where the amount exceeds USD 25,000 per transactionAD Category- IIMonthly
3Statement of Purchase transactions of USD 10,000 and above (including transactions of their franchisees)FFMCs and AD Category- IIMonthly
4Extension of Liaison Offices (LOs)AD Category-I banksAs and when extension is granted
5Extension of Project Offices (POs)AD Category-I banksAs and when extension is granted
6FII/FPI daily: Daily inflow/outflow of foreign fund on account of investment by FPIsAD banksDaily
7FII/FPI Return (Monthly): Data relating to actual inflow /outflow of remittances on account of investments by Foreign Institutional Investors (FIIs) in the Indian Capital marketAD Category-I banksMonthly
8FVCI reporting: Inflows/outflows of remittances on account of investments by Foreign Venture Capital Investor (FVCIs) and Market value of Investments made by FVCIsAD Category-I banks/Custodian banksMonthly
9Reporting of Inflow/Outflow details in respect of Mutual Fund by Asset Management CompaniesAsset Management CompaniesQuarterly
10Market value of FII Investment in India on fortnightly basisAD Category-I banksFortnightly
11Market value of FII Investment in India on Monthly basisAD Category-I banksMonthly
12FII holdings as percentage of floating stockAD Category-I banksMonthly
13Form DRR for Issue/transfer of sponsored/unsponsored Depository Receipts (DRs)-Hardcopy@CustodianAt the time of issue/transfer of depository receipts
14ADR/GDR Movement Report- two way fungibilityAD Category-I banksMonthly
15Repatriation of Sales proceeds of underlying shares represented by FCCBs/GDRs/ ADRsCustodianMonthly
16GDR/ADR underlying shares issued, re deposited and released monthly reportingCustodianMonthly
17Monitoring of disinvestments by Overseas Corporate BodiesAD banksMonthly

@ Please note that it is only the hardcopy filing of form DRR that has been discontinued. The domestic custodian may continue to report the form DRR on FIRMS application in terms of Regulation 4 (5) of FEM (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019.

Read Also: RBI Payment and Settlement Systems : Press Release


The author of the above article is CS Lalit Rajput, Partner at Xcede Consultech LLP.
Email id: [email protected]

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