Export and import of Indian currency to and from Nepal and Bhutan: small denominations unlimited; higher notes limited to Rs.25,000 while travelling.
Persons not being citizens of Pakistan or Bangladesh may carry Indian currency notes of denominations up to Rs.100 to or from Nepal and Bhutan without limit; notes of denominations above Rs.100 may be carried by an individual travelling to or from Nepal and Bhutan only up to a total limit of Rs.25,000; movement of Nepalese and Bhutanese currency to and from India is also permitted.

Liberalised Remittance Scheme now requires AD Category II banks and FFMCs to submit daily LRS returns via CIMS.
AD Category II banks, authorised entities and Full Fledged Money Changers must submit the LRS daily return via CIMS (including nil reports) and may discontinue submitting LRS transactions through AD Category I banks; CIMS access enables PAN wise checks of cumulative remittances before facilitating further LRS transactions.

KYC compliance for authorised persons is governed by entity specific RBI directions; NBFC KYC Directions apply to others.
Persons regulated by the Department of Regulation, Reserve Bank of India shall follow the respective Know Your Customer directions applicable to them; Authorised Persons not regulated by that Department shall be governed by the Reserve Bank of India (Non-Banking Financial Companies - Know Your Customer) Directions, 2025. Authorised Persons must ensure compliance by their agents, sub agents and franchisees. Related master directions are modified and these directions, issued under FEMA powers, apply with immediate effect.

Compounding payments under FEMA must be made via NEFT/RTGS to revised accounts and notified to the office within two hours.
The directions require compounding application fees and compounding amounts to be paid by NEFT/RTGS to revised bank accounts listed in Annexure I, which provides account numbers, IFSC codes and email contacts for central and regional offices. Payors must send a confirming email within two hours using the prescribed template with transaction details (including UTR, account and bank details, payment date, application reference where applicable and office to which payment was made), and may attach the payment email to the compounding application.

Special Rupee Vostro account investment permitted in Indian corporate bonds and commercial paper under prescribed guidelines.
AD banks may invest surplus balances in Special Rupee Vostro Accounts in non convertible debentures/bonds and commercial paper issued by Indian companies, in terms of the guidelines and limits prescribed in the referenced AP DIR circular, with immediate effect; the instruction is issued under sections 10(4) and 11(1) of FEMA and without prejudice to other statutory permissions.

Special Rupee Vostro Account balances may be invested in Indian corporate debt and commercial paper under General Route limits.
SRVA holders may invest rupee surplus balances in non-convertible debentures/bonds and commercial papers issued by Indian companies; such investments shall be reckoned under the corporate debt investment limit under the General Route. These investments are subject to General Route investment limits and stipulations applicable to FPI investments, except that the minimum residual maturity and issue wise limits do not apply under the SRVA route. SRVA holders and AD Category I banks bear primary responsibility for compliance; AD Category I banks must facilitate separate demat accounts and report transactions to depositories. The amendments have immediate effect.

EDPMS/IDPMS reconciliation: permit declaration-based closure of small-value export/import entries and accept consolidated quarterly declarations without penal charges.
AD banks may reconcile and close EDPMS and IDPMS entries for small-value export/import bills based on exporter or importer declarations that proceeds have been realised or payments made; value reductions may be accepted and declarations may be consolidated quarterly for bulk reconciliation. Banks must review handling charges to ensure they are commensurate and must not levy penal charges for regulatory delays; the changes take immediate effect and the master directions will be updated under the foreign exchange law.

Merchanting trade timeframe extended for foreign exchange outlay, easing management of merchanting transactions under FEMA.
The period for outlay of foreign exchange in Merchanting Trade Transactions has been increased to a six month window to facilitate efficient management; all other directions, including commencement and completion definitions based on shipment/export receipt and import payment, remain unchanged. The change is effective immediately for Authorised Dealer Category I banks and is issued under the Foreign Exchange Management Act without prejudice to other statutory permissions.

Foreign contribution registration: submit renewal applications at least four months before expiry to avoid suspension of receipts.
Holders must apply for renewal within six months before certificate expiry, submitting applications electronically in the prescribed form with affidavits in Proforma 'AA'; late submissions hinder scrutiny and security inputs, causing certificates to lapse and preventing receipt or utilisation of foreign contribution while renewal is pending. Associations are advised to submit renewal applications not later than four months before expiry to allow adequate time for review and timely disposal.

Standalone Primary Dealers' eligibility to transact non deliverable Rupee derivatives expanded, with immediate amendment to Master Direction.
Standalone Primary Dealers authorised as Authorised Dealer Category III are permitted to transact in non deliverable Rupee derivative contracts; the Master Direction is amended to insert SPD/AD Cat III references in multiple paragraphs so such transactions may be offered to residents and non residents and to associate SPDs alongside IFSC Banking Units and AD Cat I IBUs, with immediate effect.

Special Rupee Vostro Account investment allows non-residents to place rupee surplus in government securities immediately.
Persons resident outside India maintaining a Special Rupee Vostro Account (SRVA) may invest rupee surplus balances in such accounts in Central Government Securities, including Treasury Bills; operational instructions have been incorporated in the Master Direction on Non-resident Investment in Debt Instruments and the updated Master Direction is issued with immediate effect, with Authorised Dealer Category-I banks to notify their constituents.

Special Rupee Vostro Accounts allowed without prior approval, enabling AD banks to open SRVAs with immediate effect.
Authorised Dealer Category I banks may open Special Rupee Vostro Accounts (SRVAs) of overseas correspondent banks without referring the matter to the Reserve Bank, with immediate effect; AD banks must inform their constituents. These directions are issued under FEMA sections 10(4) and 11(1) and are without prejudice to permissions or approvals required under other laws.

Security Manual for Licensed Defence Industries requires licence holders to implement graded physical, personnel and cyber safeguards before production.
The SMLDI 2025 mandates that all companies holding Industrial Licences must comply with the Security Manual's provisions before commencing production; it designates CEO/Head as overall responsible and requires appointment and vetting of a CCSO and CISO, prescribes graded security controls by product category, detailed physical, personnel, material and information security measures, cyber security requirements (aligned with ISO 27001), reporting and audit obligations, and enforcement including actions under relevant statutes and possible licence suspension.

Extension of FCRA registration validity allows continued registration while renewal is pending, subject to refusal ending eligibility.
Extension of FCRA registration validity is provided for (a) entities previously extended to 30.06.2025 with pending renewal applications and (b) entities whose five-year validity expires between 01.07.2025 and 30.09.2025 that have applied or will apply for renewal before expiry; in both cases validity is extended to 30.09.2025 or until disposal of the renewal application, whichever is earlier. If renewal is refused, the certificate is deemed expired on the refusal date and the association cannot receive or utilise foreign contribution.

Advance remittance for import of shipping vessels allowed without bank guarantee, subject to MD Imports conditions and compliance.
Importers of shipping vessels may make advance remittance without a bank guarantee or an unconditional, irrevocable standby Letter of Credit, subject to the conditions set out in para C.1.3.3 of the Master Direction - Import of Goods and Services (MD Imports), and within the monetary ceiling specified in the circular.

Reporting requirement for partly paid units: transitional window for prior issuances and ongoing thirty day filing obligation.
Issuance of partly paid units to persons resident outside India must be reported in Form InVI on the FIRMS portal within 30 days; prior issuances may be reported within 180 days from the circular date without late fees, and issuances on or after the circular date remain subject to the 30 day reporting timeline.

Government-supported Line of Credit enables export financing for refinery construction, subject to Foreign Trade Policy and FEMA compliance.
Government-supported Line of Credit permits financing of imports for refinery construction from India subject to export eligibility under the Foreign Trade Policy; the LoC is effective from the agreement date with final disbursement due 48 months after scheduled contract completion. Shipments must be declared in the Export Declaration Form/Shipping Bill per Reserve Bank instructions. No agency commission is payable under the LoC, but exporters may use own funds or Exchange Earners' Foreign Currency Account balances for commission after realization, subject to remittance rules; AD Category-I banks must notify exporters and direct them to Exim Bank for details.

FCRA account payments allowed for compounding and fees via SBI Branch Payment; other withdrawals remain prohibited.
Payment of compounding penalties and statutory fees for associations with expired FCRA registration is permitted to be made from the association's FCRA bank account at State Bank of India, New Delhi Main Branch through the FCRA online portal by using the introduced SBI Branch Payment mechanism; any other receipt or utilisation from the FCRA bank account during the expired validity period remains prohibited and attracts penal consequences.

Compounding cap: authority may limit compounding penalty per regulation for certain FEMA contraventions subject to exceptional circumstances.
The compounding authority may, based on the nature of the contravention, exceptional circumstances, and wider public interest, cap the maximum compounding amount at INR 2,00,000 for each regulation or rule applied in a compounding application in respect of contraventions under row 5 of the computation matrix, subject to the authority's satisfaction of the facts and public interest considerations.

Export repatriation flexibility: exporters may realise and repatriate export proceeds and establish UAE warehouse operations under relaxed conditions.
Authorised Dealer Category I banks may permit exporters using UAE 'Bharat Mart' warehouses to repatriate the full export value of goods sold from the warehouse within an extended period from the sale date, and may, after verifying reasonableness and without pre-conditions, allow exporters with a valid Importer Exporter Code to open or hire warehouses and remit funds for setup and recurring office expenses; these relaxations are effective immediately and subject to other statutory permissions.