Uniformity for delayed reporting – Imposition of Late Submission Fee (LSF) under the Foreign Exchange Management Act, 1999 (FEMA) - MMJC

The Reserve Bank of India (RBI) vide A.P. (DIR Series) Circular No. 16 dated September 30, 2022 has revised the matrix for calculation of late submission fee (LSF) for reporting delays under FEMA with immediate effect.

Earlier regime

The concept of LSF was introduced for delayed reporting under various functions as below:

Current regime

Delayed reporting prior to the abovementioned period were to be compounded with the RBI.

Hence, to bring uniformity in imposition of LSF across all functions, RBI has revised the matrix for calculation of LSF for delay in reporting in the said circular (The copy of circular has been attached herewith for your ready reference and perusal)

The circular provides for the facility for opting LSF in case of delayed reporting up to 3 years from the due date of reporting/submission and also allows for the delayed reporting/submissions made under earlier FDI regulations and revised OI Regulations.

In case of non-submission/filing under the provisions of FEMA within due time nor submissions/filing along with LSF, the person responsible for such submission shall be liable for penal action under the relevant FEMA provisions.