FEMA & RBI
Foreign exchange rules and Reserve Bank directions.
7stories · Relief
October 2026
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RBI allows one-time approval for mutual funds, insurers and pension funds to re-acquire major shareholding in a bank, up to 10 per cent
One-time approval, up to 10%ReliefRBI has amended its directions on acquisition and holding of shares or voting rights in banks. SEBI-registered mutual funds, IRDAI-registered insurers and PFRDA-registered pension funds outside the bank’s promoter group can get a one-time approval, through PRAVAAH, for subsequent acquisitions of major shareholding up to 10 per cent. Prior approval for the initial acquisition stays mandatory.
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Form A2 remittances: authorised dealers’ internal guidelines can now be approved by a Board committee or management committee, says RBI
A.P. (DIR) Circular 23ReliefRBI has modified its July 2024 circular on online submission of Form A2. Authorised dealers may now frame their internal guidelines for outward remittances with the approval of the Board or of any Board Committee / Management Committee to which the Board has delegated powers. All other instructions of the 2024 circular remain unchanged.
September 2026
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Gold and silver import through IIBX: IFSCA widens who can be notified as a Qualified Jeweller — DGFT authorisation holders and GJEPC members can apply
Qualified Jeweller route widenedReliefIFSCA has relaxed the eligibility for being notified as a Qualified Jeweller for importing gold or silver through IIBX. Holders of a valid DGFT Advance Authorisation, a valid GJEPC Registration-cum-Membership Certificate, or a DGFT authorisation for specific ITC (HS) codes can now apply through IIBX. They must trade through a Bullion Trading Member and import only the authorised items.
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Banks can accept overseas-certified KYC documents from Foreign Portfolio Investors: RBI amends the Commercial Banks KYC Directions
KYC: certified copy for FPIsReliefRBI has amended paragraph 5(1)(v) of the Commercial Banks – Know Your Customer Directions, 2025. The option of taking an original certified copy of KYC documents — certified by an overseas bank branch, a notary abroad, a court magistrate, a judge or the Indian Embassy/Consulate — was available for NRIs and PIOs. It now also covers Foreign Portfolio Investors, with immediate effect from 18 September 2026.
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Expired placement memorandum can be revived: IFSCA allows extension even on a late application, at 50% extension fee plus a late fee the FME must bear
Expired PPM: late extensionReliefIFSCA may now extend the validity of an expired placement memorandum of a Venture Capital or Restricted Scheme even where the FME applies after expiry. The FME pays an extension fee of 50% of the fresh-filing fee for each six-month period plus a late fee of 50% of that extension fee, cannot make material changes, and cannot pass the late fee to the scheme or investors.
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RBI drops two reports on Rupee accounts of non-resident banks: yearly branch list and overdrawal reporting dispensed with — A.P. (DIR Series) Circular No. 20
Two FEMA reports droppedReliefBy A.P. (DIR Series) Circular No. 20 dated 2 September 2026, RBI has dispensed with two reporting requirements on Rupee accounts of non-resident banks that dated from April 2003: the annual list of branches maintaining such accounts, and the report of temporary overdrawals not adjusted within five days. The change applies with immediate effect.
August 2026
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29 FDI investments worth ₹4,895.65 crore reported under the revised land-border-country rule
₹4,895.65 croreReliefSince Press Note 2 of 2026, investors with non-controlling land-bordering-country ownership of up to 10% can use the automatic route after reporting to the Government.
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