Export-focused inventory e-commerce may receive foreign investment, exempting qualifying Indian-made product exports from domestic retail restrictions.
Foreign direct investment is permitted for an inventory-based e-commerce model exclusively exporting goods or products manufactured or produced in India, subject to applicable foreign trade and foreign-exchange export requirements. Restrictions otherwise applicable to foreign direct investment in business-to-consumer and inventory-based e-commerce do not apply to these qualifying exports. The change takes effect from the date of the relevant FEMA notification.

Special Rupee Vostro Accounts enable Indian-rupee settlement of cross-border trade and permissible FEMA transactions through authorised dealer banks.
Special Rupee Vostro Accounts provide an additional Indian-rupee arrangement for settling cross-border export and import transactions and permissible FEMA current-account and capital-account transactions. Authorised Dealer Category-I banks may open SRVAs for overseas branches or banks resident outside India and may open dedicated additional current accounts for exporters or importers. SRVAs may receive inward remittances, transfers from repatriable rupee accounts and proceeds of permissible transactions. Documentation and reporting remain governed by extant FEMA requirements, while debt investments from SRVA balances are subject to applicable non-resident investment directions.

FEMA regulatory rationalisation through withdrawal of obsolete circulars issued after review of earlier directions.
Rationalisation of the FEMA regulatory framework through review of circulars issued since June 1, 2000, and withdrawal of those listed in the Annex that have ceased to operate because of subsequent regulatory amendments, redundancy, overlap or supersession by later directions. Authorised Persons are advised to bring the circular to the notice of their constituents. The directions are issued under Section 10(4) and Section 11(1) of FEMA, 1999, without prejudice to permissions or approvals required under other laws.

Reporting requirements under FEMA rationalised through revised return formats, discontinued forms, and updated compliance obligations.
Reporting requirements under FEMA, 1999 are rationalised by prescribing revised return formats and discontinuing several existing forms and statements. The revised FLM-8 format now captures write-off of foreign currency notes, while prior approval for write-off exceeding USD 2000 is discontinued and entities reporting through FETERS are exempted from FLM-8. Authorised Persons with franchisee arrangements and Indian Agents under MTSS must submit quarterly lists within 15 days from quarter end.

Open position computation for banks excludes hedged FCNR(B) and foreign borrowing exposures under revised FEMA directions.
Authorised Dealer Category-I banks must exclude positions arising from hedged transactions relating to FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings when computing net overnight open position in Indian rupees. The change partially amends the earlier direction on NOP-INR position and must be applied consistently with the circular on open positions and the Master Direction on Risk Management and Inter-Bank Dealings. The directions are issued under FEMA, 1999 and are without prejudice to other legal permissions or approvals.

Daily reporting of FCNR(B) deposits, ECBs and OFCBs under the swap facility becomes mandatory for authorised dealer banks.
Authorised Dealer Category-I banks must submit daily reports on FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings mobilized under the Reserve Bank's swap facility directions by 6 p.m. every day in the prescribed annexed formats. NIL statements are required when there are no transactions, except on Saturdays and holidays. Data from June 8, 2026 up to issuance must be filed with the first report due on June 22, 2026.

Foreign portfolio investment liberalisation expands equity investment access for resident outside India investors through repatriable INR accounts and aligned compliance.
Foreign portfolio investment under Schedule III of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 is liberalised to permit investment in equity instruments of a listed Indian company on a recognised stock exchange in India by all individual persons resident outside India, with enhanced investment limits. Authorised Dealer Category-I banks may open a repatriable INR account for such investors, and reporting and monitoring are to follow the same manner as NRI and OCI investments.

Foreign exchange swap positions: banks may exclude eligible swap exposures while meeting NOP-INR compliance requirements.
Authorised Dealer Category-I banks may exclude swap positions arising from FCNR (B) deposits, external commercial borrowings and overseas foreign currency borrowings raised under the specified swap-facility circulars, while complying with the applicable NOP-INR requirements under the earlier circular. The direction forms part of the foreign exchange regulatory framework for such swap transactions and is subject to any permissions or approvals required under other laws.

Foreign exchange reporting shifts to CIMS portal as banks must file monthly statements and NIL reports electronically.
Authorised Dealer Category-I banks must upload specified foreign exchange reports on the Centralized Information Management System (CIMS) portal instead of submitting them manually. The consolidated monthly statement of branches, liaison offices and project offices opened and closed is to be filed on CIMS with return code R343 from the month ending June 2026, including a NIL report where no data is available. The monthly statement on NRO account remittances is also shifted to CIMS with return code R006, and the reporting framework under FEMA is being updated.

Foreign Portfolio Investor access to government securities broadened through eased limits and expanded fully accessible route coverage.
Foreign Portfolio Investors are given greater flexibility for Government securities investments under the General Route by withdrawing the short-term investment limit, security-wise limit and concentration limit. The framework merges the "general" and "long-term" sub-categories into single limits for Central Government Securities and State Government Securities, and expands the Fully Accessible Route by adding new issuances of specified tenors of Government Securities and Sovereign Green Bonds, together with identified existing securities. Related Master Direction provisions are amended accordingly, with revised monitoring by the Clearing Corporation of India Ltd. and immediate effect.

Outward remittance compliance framework tightens bank responsibility, disclosure duties, data protection and settlement controls for online third-party arrangements.
An operating framework is prescribed for outward remittance services for non-trade current account transactions through third-party entities in online mode, with Authorised Dealer banks remaining solely responsible for FEMA and KYC compliance. The earlier approval-based arrangement for non-bank tie-ups is removed, and banks must follow detailed transparency, invoicing, customer disclosure, grievance redressal, data protection, cybersecurity, settlement, fund-safeguarding, and due-diligence requirements. Agreements with third parties must preserve the bank's full regulatory responsibility, and similar requirements apply to doorstep delivery of forex cards or foreign currency notes.

Authorised persons framework under foreign exchange law is rationalised to improve service delivery and ease compliance requirements.
The Reserve Bank has issued the Foreign Exchange Management (Authorised Persons) Regulations, 2026 to rationalise the framework for authorisation under the Foreign Exchange Management Act, 1999, improve delivery of foreign exchange services, and ease compliance requirements. All authorised persons must comply with the regulations as applicable to them. The Master Directions on money changing activities and other remittance facilities are being amended, and earlier A.P. (DIR Series) circulars listed in the annex are superseded.

Foreign exchange derivative reporting expands to INR-linked related party trades, with phased coverage, exclusions, and two-day reporting limits.
Authorised Dealer Category-I banks must report INR-linked OTC foreign exchange derivative contracts undertaken globally by their related parties to the Trade Repository of Clearing Corporation of India Ltd., subject to exclusions for back-to-back transactions, certain trades with other AD Category-I banks in India, and contracts below USD 1 million or equivalent. The bank must progressively achieve specified reporting coverage for related parties and report all INR-linked derivative contracts of the parent from July 1, 2027. Reporting must include relevant transaction details and be made preferably on the transaction date, but within two working days.

Foreign exchange derivative contracts involving INR are restricted for related parties, with limited exceptions for rollovers and back-to-back transactions.
Authorised Dealers are prohibited from undertaking foreign exchange derivative contracts involving INR with their related parties, except for cancellation and rollover of existing contracts and back-to-back transactions with non-related non-resident users under the Master Direction on Risk Management and Inter-Bank Dealings. The term related parties is to be understood by reference to Ind AS 24, IAS 24, or equivalent accounting standards, and the directions apply with immediate effect.

Non-resident investment in debt instruments consolidated under updated RBI directions for banks and market participants.
Reserve Bank of India consolidated existing instructions on non-resident investment in debt instruments into the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025, as amended. The framework covers investments in debt instruments by Non-Resident Indians and the offering of debt instruments acquired under FEMA 396 as collateral to recognized stock exchanges in India for exchange traded derivative contracts. Authorised Dealer Category-I banks are to note the updated Direction and inform constituents and customers concerned.

Foreign portfolio investment debt limits remain unchanged for government securities, state securities and corporate bonds in the new financial year.
Limits for foreign portfolio investment in debt instruments for financial year 2026-27 are maintained at 6 per cent for Government Securities, 2 per cent for State Government Securities and 15 per cent for corporate bonds under the General Route. The incremental increase in the G-Sec limit continues to be split equally between the General and Long-term sub-categories, while the entire increase in SGS limits is allocated to the General sub-category. Investments in specified securities are to be reckoned under the Fully Accessible Route, and all existing and future investments under the Voluntary Retention Route are brought within the investment limits applicable to FPI investment under the General Route from April 01, 2026.

Forex counter regulation allows exchange of Indian Rupee notes by residents and non-residents at international airport departure halls.
Foreign exchange counters in international airports may accept exchange of Indian Rupee notes from residents as well as non-residents at departure halls in the Duty-Free Area or Security Hold Area beyond the Immigration or Customs desk. The instruction revises the existing framework governing money changing activities in airports and requires the Master Direction on Money Changing Activities to be amended accordingly.

Foreign exchange derivative restrictions tighten on INR contracts, limiting non-deliverable positions, rebooking, and related-party dealings.
Authorised Dealers are prohibited from offering non-deliverable derivative contracts involving INR to resident or non-resident users, while deliverable foreign exchange derivative contracts may continue only for hedging requirements and only where no offsetting non-deliverable positions are maintained. Rebooking of any cancelled foreign exchange derivative contract involving INR is barred, and no foreign exchange derivative contract involving INR may be undertaken with related parties. The instructions apply immediately until further review.

Overseas investment references now move to designated Reserve Bank Regional Offices through PRAVAAH portal routing for authorised dealer banks.
Submission of references relating to overseas investment received from persons resident in India through authorised dealer category I banks is shifted from central processing to seven designated Regional Offices with effect from 1 April 2026. Banks must route such references through the Reserve Bank's PRAVAAH portal in accordance with the relevant UIN prefix mapping to the specified Regional Office.

Guarantee reporting under FEMA requires specified returns, quarterly submission through CIMS, and unique transaction numbering.
Reporting obligations under the Foreign Exchange Management (Guarantees) Regulations, 2026 require use of specified RBI return files for guarantee issuance, modification and invocation. Authorised dealer banks must submit the returns through CIMS within thirty calendar days from the end of the relevant quarter and assign a unique Guarantee Transaction Number for each guarantee issuance. For late submission fee purposes, invocation returns are measured by the liability created on invocation, while issue and modification returns are treated as Nil.