RBI Streamlines FC-GPR Process: Relief for Indian Companies Handling FDI Reporting

Introduction

For Indian startups and companies receiving foreign direct investment (FDI), the FC-GPR (Foreign Currency-Gross Provisional Return) form is a mandatory compliance document. It must be filed on the FIRMS portal and routed through the Authorised Dealer (AD) bank. Until recently, if the AD bank rejected the FC-GPR due to errors or omissions, the entire form had to be filled and filed afresh—leading to delays, frustration, and risk of non-compliance.

In a welcome change, the Reserve Bank of India (RBI) has updated the process to allow companies to edit and resubmit the same form after rejection, rather than starting from scratch. This marks a significant shift toward ease of doing business in India.

The Earlier Challenge with FC-GPR Rejections

Previously, even minor mistakes in the FC-GPR form—such as typographical errors, incorrect share allotment details, or missing attachments—led to the entire application being rejected by the AD bank. Companies were forced to prepare a fresh application and re-enter all data again from the beginning. This duplication of effort often caused delays in compliance and increased the risk of penalties under FEMA guidelines for late reporting.

This was particularly burdensome for startups, SMEs, and first-time FDI recipients, who often lack dedicated compliance teams. The need to start over not only wasted time but also introduced uncertainty in investor relations.

What Has Changed in the New FC-GPR Process

The revised procedure now enables the applicant to make corrections directly within the existing FC-GPR form after receiving feedback or rejection from the AD bank. Instead of discarding the form and reinitiating the entire process, the company can access the same form, edit the necessary fields, attach corrected documents, and resubmit.

This change reflects a more pragmatic approach to compliance and allows businesses to meet their regulatory obligations with improved efficiency. The date of the final resubmission will be treated as the date of submission for compliance tracking, offering clarity and reducing unnecessary penalty exposure.

Why This Change Is Important

This procedural reform brings several benefits to businesses:

1. Eliminates Repetition: Companies no longer have to re-enter all information, saving time and effort.
2. Reduces Errors: Continuity in form data lowers the chances of fresh mistakes.
3. Improves Compliance Timeliness: Quick corrections mean faster approvals and reduced risk of missing deadlines.
4. Enhances Business Confidence: Startups and investors gain assurance that the system is becoming more user-friendly and business-centric.

Overall, this move simplifies a critical step in the FDI lifecycle and strengthens India’s regulatory ecosystem.

Implications for Indian Startups and Export-Oriented Firms

Many startups and export-driven companies regularly receive funding from foreign investors. For these entities, this change allows smoother compliance without the fear of having to repeat the entire FC-GPR process due to technical rejections. It also aligns with the broader government agenda of encouraging foreign investment by reducing red tape.

In practical terms, companies should ensure that their compliance teams are aware of the new feature, have access to the FIRMS portal, and monitor any rejection notifications promptly to use the edit-resubmit functionality effectively.

Best Practices Going Forward

To make the most of this new system, companies should:

• Maintain accurate records of all FDI transactions, including supporting documents.
• Ensure timely communication with their AD bank to understand rejection reasons.
• Respond promptly to any feedback received to resubmit within the regulatory timelines.
• Regularly review updates on the FIRMS portal and RBI circulars to stay compliant.

Conclusion

The RBI’s update to the FC-GPR submission process reflects a positive step toward digitization and simplification of FDI compliance in India. By allowing companies to edit and resubmit rejected forms without starting over, it reduces operational burden and encourages timely regulatory filings.

At Hoysala International Growth Hub (H.I.G.H), we support companies in navigating evolving regulatory landscapes and achieving growth across borders. With reforms like these, India continues to strengthen its appeal as a global investment destination.