A new government-backed digital portal has been launched to track foreign transactions made by Indian subsidiaries of multinational corporations, in a move aimed at increasing transparency, improving regulatory oversight, and ensuring compliance with the Foreign Exchange Management Act (FEMA) and related laws. This initiative has been rolled out jointly by the Ministry of Finance and the Reserve Bank of India (RBI) to address concerns around unmonitored fund flows, transfer pricing discrepancies, and undisclosed cross-border payments.

The portal enables real-time reporting and validation of foreign transactions involving royalty payments, management fees, inter-company loans, import/export of services, and capital remittances. Indian subsidiaries are now required to submit detailed digital filings for each qualifying transaction, along with relevant documentation such as board resolutions, shareholder approvals, contract agreements, and beneficiary disclosures. The system cross-verifies submissions with data from customs, tax authorities, and banking channels to flag any anomalies.

Industry experts view the portal as a critical step in creating a centralized compliance infrastructure that will assist both regulators and businesses. For companies, it reduces the burden of fragmented reporting, provides a transaction history archive, and minimizes the risk of penalties for delayed or inaccurate disclosures. For regulators, it offers an efficient tool to monitor patterns, conduct audits, and detect suspicious fund movements. As the portal becomes fully operational, Indian subsidiaries must integrate their internal systems to align with this digital framework and ensure timely, transparent, and accurate foreign transaction reporting.