Reserve Bank of India (RBI) provides uniformity in Late Submission Fee (LSF) for reporting delay

RBI has revised the matrix for the calculation of LSF to bring uniformity in the imposition of LSF across functions for delayed reporting. 

The highlights are summarized below:

• LSF amount for delay in reporting of various forms of overseas direct investment i.e., Form ODI Part-II, Form APR, Form OPI and foreign investment in India forms like FLA returns, evidence of investment or any other return which does not capture flows or any other periodical reporting, has been reduced to INR7,500 per return as against INR10,000 earlier.
  
  
• Further, RBI has provided a uniform formula for the calculation of LSF for the delay in reporting of various foreign investment forms like FC-GPR, FCTRS, Form ESOP, Form LLP(I), Form LLP(II), Form CN, Form DI, Form InVi, overseas direct investment forms like Form ODI-Part I, Form ODI-Part III, Form FC and various external commercial borrowing forms like Form ECB, Form ECB-2, Revised Form ECB or any other return which captures flows or returns which capture reporting of non-fund transactions or any other transactional reporting i.e., LSF Amount = [7500 + (0.025% × A × n)], wherein “n” is the number of years of delay in submission rounded upwards to the nearest month and expressed up to two decimal points and “A” is the amount involved in the delayed reporting.
  
  
• Additionally, the minimum amount of LSF shall now be INR7,500 as against INR100 earlier.
  
  
• Maximum LSF amount will be limited to the amount involved in the delayed reporting.
  
  
• In the case of Form ECB 2 return (monthly reporting for external commercial borrowing), for any number of delayed return filings, delayed submission for each Loan Registration Number (LRN) will be treated as one instance.
  
  
• The facility for opting for LSF can be availed up to three years from the due date of reporting/submission.
  
  
• LSF is to be paid within 30 days from the issuance of LSF payment advice. 
  

Source: Circular No. RBI/2022-23/122 A.P. (DIR Series) Circular No.16 dated 30 September 2022