FEMA miscellaneous directions clarify resident foreign assets, joint NRI accounts, deposit crystallisation, and regularisation of declared overseas assets.
Foreign exchange directions under FEMA consolidate miscellaneous instructions for authorised dealers and authorised persons, covering tax-compliance treatment for remittances, use and reinvestment of eligible foreign assets, joint resident accounts with NRI close relatives, treatment of medical payments for NRI relatives, routing of funds raised abroad, information-sharing with the Special Investigation Team, crystallisation of inoperative foreign currency deposits, IFSC transactions, and regularisation of declared foreign assets under the Black Money Act.

Reporting under FEMA consolidates reporting forms, timelines, and compliance requirements for foreign exchange transactions and investments.
Reporting under FEMA consolidates the Reserve Bank's prescribed returns, forms and reporting timelines for authorised persons and related entities across foreign exchange transactions. It standardises reporting for money changing, MTSS, Rupee Drawing Arrangements, Liberalised Remittance Scheme, foreign investment, overseas investment, borrowing and lending, trade credit, non-resident foreign accounts, immovable property, guarantees, compounding and late submission fees. The direction is intended to support supervision, timely filing and compliance with changing RBI instructions.

Import of Goods and Services: banks must verify imports, record remittances in IDPMS, and apply conditional guarantees for advances.
The Master Direction requires AD Category - I banks, under FEMA, to ensure bona fide import transactions, perform KYC/AML and due diligence, create Outward Remittance Messages in IDPMS for all remittances lacking evidence, reconcile ORMs with Bills of Entry, preserve and verify import documents, follow timelines for settlement/extension/write-off, and apply conditional guarantee requirements for advance remittances across sectors including diamonds, aircraft, gold and services.

Export Proceeds Realisation governs settlement, reporting, foreign-currency accounts, export advances and authorised dealer obligations for Indian exports.
Exporters must realise and repatriate the full value of goods, software and services through permitted banking channels within the prescribed period. AD Category-I banks must verify transaction bona fides, ensure KYC and anti-money-laundering compliance, process export declarations and report export transactions, advances and realisations through EDPMS. The framework permits INR trade settlement through Special Rupee Vostro Accounts, third-party payments, eligible foreign-currency accounts, export advances, factoring, set-off and specified write-offs, subject to documentation, reporting and applicable conditions.

Overseas direct investment rules: automatic and approval routes define funding, limits, reporting and sectoral safeguards.
This Master Direction consolidates the regulatory framework for resident direct investments in overseas Joint Ventures and Wholly Owned Subsidiaries, distinguishing an Automatic Route with specified funding methods, ceilings and eligibility conditions from an Approval Route requiring prior Reserve Bank consent. It prescribes the composition and treatment of financial commitments, sectoral prohibitions and additional conditions for financial services, reporting obligations including UIN allotment and Annual Performance Reports, valuation and documentation norms for acquisitions and share swaps, rules on guarantees, pledges and creation of charges, and operational duties of Authorised Dealer Category I banks.

Foreign currency and non-resident deposit accounts: eligibility, permitted transactions, repatriation, and authorised dealer compliance are governed through defined account schemes.
Foreign currency accounts of persons resident in India are governed by account-specific eligibility, permitted credits and debits, conversion, repatriation, and authorised-dealer conditions. EEFC, RFC, RFC(D), Diamond Dollar, project-office, SEZ, and other operational accounts may be maintained only for defined purposes. Residents may also open overseas accounts for prescribed business, study, travel, export, investment, and remittance purposes, subject to applicable repatriation requirements. NRE, FCNR(B), NRO, and SNRR accounts regulate non-resident deposits and rupee transactions, including joint holding, loans, redesignation, tax compliance, and permitted repatriation.

Remittance of assets under FEMA is regulated through prescribed limits, documentation, and Reserve Bank approval for exceptional cases.
Remittance of assets outside India is governed by FEMA regulations and Reserve Bank directions to authorised dealers. The directions define remittance of assets and related categories, permit specified remittances by foreign nationals, NRIs and PIOs within prescribed limits and conditions, and set out documentary requirements for companies under liquidation and branch or office closures. Prior Reserve Bank approval is required for remittances above the stated limit, in hardship cases, and for other unlisted remittances. All remittances are subject to applicable taxes in India.

Immovable property acquisition rules impose eligibility, permitted payment channels, reporting and conditional repatriation requirements.
Acquisition and transfer of immovable property under FEMA set out who may acquire or transfer property in India and outside India, with NRIs and OCIs permitted to purchase non agricultural immovable property and receive property by gift or inheritance, subject to payment through specified banking channels, account debits, and reporting. Special rules govern joint acquisitions by non resident spouses, long term visa holders, diplomatic missions, and foreign branches; repatriation of sale proceeds is conditional on prior Reserve Bank permission or compliance with specified remittance facilities, and nationals or entities of certain countries require prior RBI approval.

Establishment of foreign branch and liaison offices in India regulated under FEMA with specified eligibility, approvals and compliance requirements.
The Master Direction consolidates FEMA rules for foreign entities establishing BO/LO/PO in India: eligibility criteria (financial track record, net worth, sectoral restrictions), application procedure via Form FNC to a designated AD Category I bank with Reserve Bank UIN allotment where required, specified validity and extension rules, operational controls on bank accounts and permitted activities, mandatory Annual Activity Certificates with auditor scrutiny, conditions for remittance of profits and project remittances, procedures for transfer of assets and closure, and AD bank obligations on due diligence, reporting and compliance.

Foreign exchange rules for insurance govern issuance, premium remittance and claim settlement across resident and non resident parties.
Consolidated directions regulate issuance, premium collection, claim settlement, reinsurance and overseas accounts for life, general and health insurance under FEMA and IRDAI rules: residents may hold foreign insurer policies subject to RBI/LRS/IRDAI permissions; foreign currency policies and premium collections are permitted in defined situations; claims settlement in foreign currency is allowed under specified documentary and beneficiary conditions; reinsurance and foreign currency accounts for insurers follow board-approved programmes and IRDAI compliance.

Foreign exchange remittance rules govern current account transactions, card use, approvals, and compliance for residents and other persons.
Miscellaneous current account remittance facilities are governed by FEMA, the Current Account Transactions Rules, and RBI directions to authorised dealer banks and authorised persons. The framework covers release of foreign exchange, card usage, surrender and retention of unspent foreign exchange, travel and salary remittances, medical payments for NRI close relatives, and remittances by other persons for gifts, donations, consultancy, pre-incorporation expenses, technical collaboration, trademarks, franchises, and tour arrangements. It also preserves prohibitions on lottery-related remittances, Nepal and Bhutan transactions, and other prohibited current account uses, while requiring declarations, Form A2, document retention, KYC compliance, and tax-law observance.

Liberalised Remittance Scheme limit governs permissible resident remittances abroad with KYC, PAN and documentation requirements.
The Liberalised Remittance Scheme permits resident individuals to remit funds abroad up to the specified annual limit for permitted current and capital account transactions. Authorised Dealers must obtain Form A2, verify PAN and KYC, maintain due diligence and reporting, refuse suspected contraventions, and not extend credit to facilitate capital remittances. Permitted uses include travel, gifts, education, medical treatment, studies, certain overseas investments and loans/gifts to NRI/PIO relatives subject to prescribed conditions. Funds or income from overseas investments must be repatriated and surrendered within the stipulated period unless reinvested.

Indian rupee lending to non-residents is permitted through regulated bank, housing, employer, relative, and overdraft channels.
Authorised dealers may provide INR loans to NRIs for permitted own, business and ESOP purposes, subject to security, prudential requirements, restricted use of proceeds and specified repayment channels. Housing loans to NRIs and PIOs may finance residential accommodation in India where secured and repaid through permitted sources. Indian body corporates may lend to NRI or PIO employees for personal purposes under staff schemes, while resident individuals may make interest-free loans to NRI relatives within Liberalised Remittance Scheme limits. Existing loans may continue following a borrower's change to non-resident status, subject to prescribed repayment conditions.

External Commercial Borrowings (ECB) framework sets routes, eligibility, limits, and reporting requirements for overseas loans.
The Master Direction sets the consolidated ECB framework prescribing three tracks (foreign currency medium term, long term, and Rupee denominated), permitted forms and routes of borrowing, eligibility of borrowers and recognised lenders, minimum average maturities, all in cost ceilings, end use restrictions, hedging obligations, permissible security and guarantee structures, conversion to equity conditions, and comprehensive reporting and procedural requirements including Loan Registration Number and AD Category I delegated powers.

Compounding of FEMA contraventions permits RBI to settle quantifiable foreign exchange breaches upon compliant application and payment.
Compounding under FEMA permits the Reserve Bank to settle quantifiable contraventions on application, exercised by authorised RBI officers and delegated regional offices subject to exclusions for section 3(a), serious misconduct, or ongoing adjudication. Complete prescribed applications with annexures and undertakings must be submitted and the Compounding Authority assesses quantifiability, may call for documents, affords an opportunity of being heard, applies the guidance matrix to determine the payable amount considering factors like unfair gain and repetition, and issues a compounding order specifying contraventions and payment instructions; failure to pay invalidates the application.

Foreign exchange authorisation framework governs money changing business, compliance duties, and operational controls for authorised persons.
Money changing business may be undertaken only by persons authorised by the Reserve Bank under the Foreign Exchange Management Act, 1999, and unauthorised activity attracts penal consequences. The Master Direction consolidates instructions for Full Fledged Money Changers, non-bank Authorised Dealers Category-II, and related foreign exchange transactions, while preserving any additional permissions required under other laws. It also states that the Reserve Bank may issue further instructions through circulars and amend the Direction accordingly.

Rupee Drawing Arrangements govern inward personal remittances via vostro accounts under strict funding, KYC and monitoring requirements.
Master Direction sets the regulatory framework for Rupee Drawing Arrangements and Rupee/foreign currency vostro accounts of non resident Exchange Houses with AD Category I banks, requiring bank due diligence on Exchange Houses, separate credit only accounts funded by sale of permitted foreign currency or DDA mechanics, prohibition of overdrafts and transfers, specified permissible inward remittance uses, mandated KYC/AML/CFT compliance, and distinct DDA, Non DDA and Speed Remittance procedures with corresponding audit, reporting and collateral regimes.