AI Drafter 
TaxTMI 
TaxTMI 
Master Direction - Miscellaneous (Updated as on May 13, 2026)
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....modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/ constituents with a view to implementing the regulations framed. 3. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the Regulations or the manner in which relative transactions are to be conducted by the Authorised Persons with their customers/ constituents. The Master Direction issued herewith shall be amended suitably simultaneously. Yours faithfully, (N Senthil Kumar) Chief General Manager Master Direction - Miscellaneous 1) Remittances to non-residents - Deduction of Tax at Source On the Central Board of Direct Taxes (CBDT) revising the existing instructions to be followed while allowing remittances to the non-residents, Reserve Bank of India has clarified that it will not be issuing instructions under Foreign Exchange Management Act, 1999 (FEMA), clarifying tax issues. The Authorised Dealers are required to comply with the requirement of the tax laws, as applicable. 2) Repatriation of income and sale proceeds of assets held....
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....older(s) in ^3 all types of resident bank accounts on "Either or Survivor" basis subject to the following conditions: • Such account will be treated as resident bank account for all purposes and all regulations applicable to a resident bank account shall be applicable. • Cheques, instruments, remittances, cash, card or any other proceeds belonging to the NRI close relative shall not be eligible for credit to this account. • The NRI close relative shall operate such account only for and on behalf of the resident for domestic payment and not for creating any beneficial interest for himself. • Where the NRI close relative becomes a joint holder with more than one resident in such account, such NRI close relative should be the close relative of all the resident bank account holders. • Where due to any eventuality, the non-resident account holder becomes the survivor of such an account, it shall be categorized as Non-Resident Ordinary Rupee (NRO) account as per the extant regulations. • Onus will be on the non-resident account holder to keep AD bank informed to get the account categorized as NRO account and al....
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....entioned at (i) above cannot be used in India unless it conforms to the general or specific permission granted under the relevant Regulations. (c) Indian companies or their AD Category - I banks using or establishing structures which contravene the above shall render themselves liable for penal action as prescribed under FEMA, 1999. 6) Constitution of Special Investigating Team - sharing of information In pursuance of the Hon'ble Supreme Court Judgment dated July 4, 2011, Government of India constituted a Special Investigation Team (SIT) under the Chairmanship of Hon'ble Justice M.B. Shah. In this regard, the Hon'ble Supreme Court has directed that: "All organisations, agencies, departments and agents of the State, whether at the level of the Union of India, or the State Government, including but not limited to all statutorily formed individual bodies, and other constitutional bodies extend all the cooperation necessary for the functioning of the Special Investigation Team. The Union of India and where needed the State Government will facilitate the conduct of the investigations, in their fullest measures, by the Special Investigation Team and functioning, by extendi....
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....ms of the Foreign Exchange Management (International Financial Services Centre) Regulations, a financial institution or a branch of a financial institution set up in the IFSC and permitted / recognised as such by the Government or a Regulatory Authority will be treated as person resident outside India. Therefore, their transaction with a person resident in India will be treated as a transaction between a resident and non- resident and shall be subject to the provisions of Foreign Exchange Management Act, 1999 and the Rules/ Regulations/ Directions issued thereunder. The financial transaction in this context shall mean making or receiving payment, drawing, issuing or negotiating any bills of exchange or promissory note, transferring any security or acknowledging any debt. Similarly, financial service shall mean any activity which a financial institution is permitted to carry on by the respective Act of the Parliament or Government of India or any Regulatory Authority empowered to regulate the concerned financial institution. 9) Regularisation of assets held abroad by a person resident in India under Foreign Exchange Management Act, 1999 To effectively deal with assets held ....
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....C) 92 31.03.2015 9 Regularisation of assets held abroad by a person resident in India under Foreign Exchange Management Act, 1999 18 30.09.2015 10 Operating framework for facilitating Outward Remittance services by non-bank entities through Authorized Dealer (Category I) banks in India 10 13.05.2026 ^1 FEMA 5/2000-RB dated May 03, 2000 has been replaced with FEMA 5(R)/2016-RB dated April 01, 2016. ^2 "Section 6 of the Companies Act, 1956" has been replaced with "Section 2(77) of the Companies Act, 2013" ^3 "Resident savings account" replaced with "all types of resident bank accounts" as the instructions are applicable to all types of resident accounts. ^4 FEMA 5/2000-RB dated May 03, 2000 has been replaced with FEMA 5(R)/2016-RB dated April 01, 2016. ^5 "Section 6 of the Companies Act, 1956" has been replaced with "Section 2(77) of the Companies Act, 2013" ^6 Paragraph 10 omitted vide A.P. (DIR Series) Circular No. 10 dated May 13, 2026. Prior to omission, it read as follows (the words in italics were inserted on July 28, 2017, and words underlined were inserted with effect from September 07, 2018): Operating framework for facilita....