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.

External Commercial Borrowing reporting updated with revised late submission fee treatment and bank filing responsibilities under FEMA.
Revised reporting directions govern returns relating to External Commercial Borrowing under the Foreign Exchange Management Act, 1999. Form ECB 1 and Revised Form ECB 1 are treated as returns that do not capture flows, and delayed submissions are to be assessed accordingly. The designated bank must forward the complete return with certification to the Reserve Bank within seven calendar days, while any applicable late submission fee is payable by NEFT or RTGS after receipt of the Reserve Bank's acknowledgment e-mail. The bank must also monitor payment of the fee in delayed cases.

NOP-INR position limits for authorised dealers tightened for onshore deliverable market compliance.
Authorised Dealers must maintain their NOP-INR positions in the onshore deliverable market within US$ 100 million at the end of each business day, with compliance required at the earliest and no later than April 10, 2026. The measure is issued as an exchange rate management direction under the Reserve Bank's power to prescribe limits for open Rupee positions and is without prejudice to permissions or approvals under other applicable law.

Border-country foreign investment restrictions require government approval for covered investors, beneficial ownership changes, and prescribed reporting obligations.
Foreign direct investment from countries sharing a land border with India requires the Government route where the investor or beneficial owner falls within the prescribed restriction. A subsequent direct or indirect ownership transfer causing beneficial ownership to fall within that restriction requires prior Government approval. Beneficial ownership may arise through ownership above applicable thresholds, control of the investor entity, or ultimate effective control over the Indian investee entity. Other covered investments not requiring approval are subject to prescribed reporting, alongside sectoral caps, entry routes, and attendant conditions.

External Commercial Borrowing reporting formats updated; revised ECB 1 and ECB 2 now mandated and effective immediately.
The Reserve Bank has revised the External Commercial Borrowing reporting formats in the Master Direction by substituting Part V - Annex I and Part V - Annex II with revised Form ECB 1 and Form ECB 2, respectively. The new forms require detailed borrower and lender information, borrowing terms, end use, interest and fee particulars, receipts, utilisation, debt servicing, hedging and LRN closure details. Authorised Persons must notify customers, and the directions-issued under the Foreign Exchange Management Act-are effective immediately and subject to any other statutory permissions.

External Commercial Borrowing framework revised; authorised dealer banks must apply amended FEMA borrowing and lending regulations when facilitating transactions.
The amendment updates the External Commercial Borrowing framework and directs Authorised Dealer Category I banks to follow the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 when facilitating FEMA-governed borrowing and lending transactions. It consolidates provisions by deleting specified paragraphs from two Master Directions and removing Part I of the ECB and Trade Credits FAQs, and requires banks to notify affected customers. The directions are issued under the Foreign Exchange Management Act and do not affect other statutory permissions or approvals.

Foreign investment in insurance permits full automatic-route participation, subject to regulatory verification, governance conditions, licensing and disclosure obligations.
Foreign direct investment in Indian insurance companies and insurance intermediaries is permitted up to 100 per cent under the Automatic Route, subject to insurance regulatory verification, licensing, applicable insurance law and foreign-investment rules. Insurance companies with foreign investment must maintain a resident Indian citizen in specified senior leadership roles. Foreign-majority-owned intermediaries must be limited companies, maintain prescribed resident Indian leadership, bring skills and disclose specified related-entity payments. Foreign investment in the Life Insurance Corporation of India remains capped at 20 per cent under the Automatic Route.

Voluntary Retention Route investments will count under General Route limits; FPIs may exit after minimum retention period.
Investments made through the Voluntary Retention Route in Central Government securities (including Treasury Bills), State Government Securities and corporate debt securities shall be reckoned under the investment limits for those securities under the General Route; FPIs that had longer-than-minimum retention periods may liquidate fully or partly and exit VRR after the minimum retention period; existing VRR investments will be transferred to the General Route limits on commencement.

Export and import rules updated: authorised dealers must follow FEMA, use PRAVAAH for references, and report doubtful transactions.
The Reserve Bank promulgated the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 to consolidate FEMA based rules for cross border trade, effective October 01, 2026. Authorised dealers must ensure transactions comply with FEMA and the Foreign Trade Policy, submit references via the PRAVAAH portal, and report doubtful transactions to the Directorate of Enforcement. Existing Master Directions and the listed circulars are superseded. The directions are issued under sections 10(4) and 11(1) of FEMA and do not affect other legal permissions required under other laws.

Foreign exchange guarantees now require reporting in Form GRN and amended bank compliance and reporting obligations.
The regulations require reporting of all guarantees - issued, modified or invoked - to authorised dealer banks in prescribed Form GRN, and mandate that authorised dealer banks compile and submit returns in the manner and format to be communicated by the Reserve Bank, while ensuring compliance with Department of Regulation guidelines.