Filing Return of Foreign Liabilities and Assets with RBI through FLAIR Portal by 15th July 2024

Introduction to FLAIR Portal

The Reserve Bank of India (RBI) mandates that all eligible entities file the Return of Foreign Liabilities and Assets (FLA) through the Foreign Liabilities and Assets Information Reporting (FLAIR) portal. The deadline for submission of the FLA return for the financial year ending 31st March 2024 is 15th July 2024. This blog post aims to provide a comprehensive guide on the process, importance, and implications of filing the return through the FLAIR portal.

Importance of Filing FLA Return

Filing the FLA return is crucial for maintaining accurate records of foreign liabilities and assets. This data helps the RBI monitor the country’s foreign investments and liabilities, ensuring better economic planning and policy-making. Companies and entities that fail to file the FLA return may face penalties and other legal consequences. Therefore, it is imperative to adhere to the filing requirements and deadlines set by the RBI.

Step-by-Step Guide to Filing FLA Return

To file the FLA return through the FLAIR portal, follow these steps:

1. Registration: If you are a first-time user, you need to register on the FLAIR portal. Provide the necessary details and obtain a Unique Identification Number (UIN) from the RBI.

2. Login: Use your credentials to log in to the FLAIR portal. Ensure that you have all necessary documents and data ready for submission.

3. Data Entry: Enter the details of your foreign liabilities and assets for the financial year ending 31st March 2024. This includes information on foreign direct investment (FDI), overseas direct investment (ODI), and other external commercial borrowings (ECBs).

4. Verification: Review the entered data for accuracy and completeness. Any discrepancies should be corrected before submission.

5. Submission: Submit the FLA return by the deadline of 15th July 2024. After submission, you will receive an acknowledgment from the RBI.

Consequences of Non-Compliance

The RBI takes non-compliance with FLA return filing very seriously. Entities that fail to file the return or provide inaccurate information may face significant penalties. Non-compliance can also lead to restrictions on future foreign investments and other financial transactions. It is advisable to seek professional assistance if there are any uncertainties regarding the filing process.

Conclusion

Filing the return of foreign liabilities and assets through the FLAIR portal is a mandatory requirement for all eligible entities. Adhering to the deadline of 15th July 2024 ensures compliance with RBI regulations and contributes to the accurate monitoring of the country’s foreign investments. For a smooth filing process, entities should ensure that all necessary data is prepared in advance and seek professional guidance if needed. Timely and accurate filing not only avoids penalties but also supports the overall economic stability of the country.