FEMA & RBI
Foreign exchange rules and Reserve Bank directions.
16stories · Rule change
October 2026
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RBI issues Credit Valuation Adjustment Framework Directions, 2026 for commercial banks, effective 1 April 2027; six amendment directions issued the same day
From 1 April 2027Rule changeRBI has issued the Reserve Bank of India (Commercial Banks – Credit Valuation Adjustment Framework) Directions, 2026, which set out how commercial banks must compute the capital charge for CVA risk on derivatives. The Directions come into effect from 1 April 2027. Six amendment directions were issued the same day: two take effect from 1 April 2027 and four, on exposures to qualifying central counterparties, from the date of issue.
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RBI raises repo rate by 25 bps to 5.50%, changes stance to calibrated tightening; SDF 5.25%, MSF and Bank Rate 5.75% with immediate effect
Repo rate 5.50%Rule changeThe Monetary Policy Committee, at its 63rd meeting on 5–7 October 2026, voted unanimously to increase the policy repo rate by 25 basis points to 5.50 per cent and changed the stance to calibrated tightening. The SDF rate stands at 5.25 per cent and the MSF rate and Bank Rate at 5.75 per cent, all with immediate effect. RBI projects real GDP growth of 7.1 per cent and CPI inflation of 5.2 per cent for 2026-27.
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RBI withdraws 268 currency-management circulars issued between 1976 and 2025 after consolidating them into Master Directions
268 circulars withdrawnRule changeRBI has withdrawn 268 circulars and guidelines on currency management, dated from 9 August 1976 to 24 April 2025. Some have been consolidated into function-wise Master Directions and subject-specific instructions; others have become obsolete or redundant. A separate circular of the same day lets a bank’s Board delegate monitoring of ATM cassette swaps to a Committee of Executives.
September 2026
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Exporters get nine months to bring export proceeds home from 1 October 2026: RBI amends the new FEMA export-import regulations, notified with fifteen, before they take effect
Export proceeds: 9 monthsRule changeRBI has amended regulation 5(1) of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 before they took effect. The period to realise and repatriate export value is nine months instead of fifteen, and twelve months instead of eighteen where the export is invoiced or settled in rupees. The amendment is in force from 1 October 2026.
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RBI finalises rules on novation of OTC derivative contracts; instructions folded into four existing Directions and apply from 22 September 2026
OTC derivative novationRule changeRBI has finalised its instructions on novation of OTC derivative contracts, first released as a draft on 9 July 2025. Instead of a separate direction, the instructions are inserted in the four Directions governing OTC foreign exchange, rupee interest rate, government securities and credit derivatives. They apply to any novation undertaken on or after 22 September 2026.
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RBI issues final Basel III market-risk capital rules for commercial banks: Simplified Standardised Approach from 1 April 2027
Market risk rules: 1 Apr 2027Rule changeRBI has issued the Reserve Bank of India (Commercial Banks – Minimum Capital Requirements for Market Risk) Directions, 2026, finalising draft guidelines of 17 February 2023. Banks must use the Simplified Standardised Approach, with capital computed for interest rate, equity and foreign exchange risk. The Directions take effect from 1 April 2027.
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RBI cuts short the FCNR(B)/NRE deposit relief window to 31 August 2026: CRR-SLR exemption, interest-rate relaxation and priority-sector carve-out all end a month early
FCNR(B)/NRE window: 31 AugRule changeThe temporary reliefs on fresh FCNR(B) deposits of three to five years and NRE term deposits of three years or more were to run until 30 September 2026. On 25 August 2026 RBI moved the end date to 31 August 2026 for the CRR/SLR exemption and the interest-rate relaxation. On 11 September 2026 the priority-sector (ANBC) exclusion was aligned to the same date.
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Bankers’ Books Evidence Act, 2026 in force from 1 October 2026; replaces the 1891 law
1 October 2026Rule changeThe new Act recognises bank records kept in electronic, digital and cloud-based form, standardises their certification, and requires a “special cause” in writing to summon bank officials.
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Electronic trading platforms in the IFSC now need IFSCA registration: Electronic Trading Platforms Regulations, 2026 notified, net worth floor USD 200,000
ETP Operator: USD 200,000 net worthRule changeIFSCA has notified the IFSCA (Electronic Trading Platforms) Regulations, 2026. No person may operate an electronic trading platform in the IFSC without registration as an Electronic Trading Platform Operator. An operator must keep a net worth of at least USD 200,000 at all times, run real-time surveillance, publish its operating policy and keep platform data for at least eight years.
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Natural-calamity relief: banks, NBFCs and AIFIs to file a half-yearly return on RBI’s CIMS portal within 30 days; monthly return for commercial banks discontinued
Half-yearly return on CIMSRule changeRBI has asked all regulated entities to report relief measures extended in areas affected by natural calamities through a half-yearly return on the CIMS portal. The return is due within 30 days of each half-year — by 30 October for the half-year ending 30 September and by 30 April for the half-year ending 31 March. The earlier monthly return for Scheduled Commercial Banks stands discontinued from 1 July 2026.
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Urban Co-operative Banks can now hold equity shares of Indian Digital Payment Intelligence Corporation (IDPIC) to become members: RBI amends investment Directions
UCBs may hold IDPIC sharesRule changeRBI has amended its investment portfolio Directions for Urban Co-operative Banks so that they can acquire membership of the Indian Digital Payment Intelligence Corporation (IDPIC), described as the nation’s central digital payment fraud intelligence platform. Paragraphs 101(5) and 107(1) of the 2025 Directions now mention equity shares of IDPIC. The change took effect on 2 September 2026.
August 2026
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IFSCA Fund Management Regulations amended again: “associate” set at a 20% test, pre-first-close money ring-fenced, differential distribution enabled
Associate = 20% holding testRule changeThe IFSCA (Fund Management) (Second Amendment) Regulations, 2026 redefine “associate” on a 20 per cent holding test, require money received before first close to be parked only in liquid, capital-preserving investments, let Venture Capital schemes make follow-on investments in companies older than ten years, enable senior and junior units, and reset NAV disclosure and FME contribution rules.
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IFSCA notifies its own market-abuse code for the IFSC: insider trading and unfair trade practices barred; SEBI’s 2015 and 2003 regulations cease to apply there
Insider trades: disclose in 2 daysRule changeThe IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026 bar insiders from communicating or trading on material non-public information and prohibit manipulative, fraudulent and unfair trade practices in the IFSC securities market. From their commencement, SEBI’s insider trading regulations of 2015 and PFUTP regulations of 2003 do not apply in the IFSC.
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Infrastructure Debt Fund-NBFCs under Upper Layer regulation to follow the large exposure limits of NBFC-IFCs: RBI amends concentration risk Directions
IDF-NBFC: IFC exposure limitsRule changeRBI has inserted paragraph 39A in its concentration risk Directions for NBFCs. The large exposure limits that apply to Infrastructure Finance Companies (NBFC-IFC) now also apply to Infrastructure Debt Fund-NBFCs (IDF-NBFC) that are subject to Upper Layer regulations. The amendment is dated 25 August 2026 and is in force with immediate effect.
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RBI issues final Directions on loan recovery and recovery agents; in force from 1 January 2027
1 January 2027Rule changeThe Amendment Directions cover fair treatment of borrowers, conduct of employees and recovery agents, and technology-based recovery on financed mobile devices — for banks, NBFCs and HFCs.
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IFSCA modifies AML, CFT and KYC Guidelines: all FIU reports only on FINgate 2.0, cross-border wire transfer reports named, NRI onboarding list of countries revised
FIU reports only on FINgate 2.0Rule changeIFSCA has modified its AML, CFT and KYC Guidelines, 2022. Regulated entities must file all reports online only at FIU-India’s FINgate 2.0 portal; rule 8 of the PML rules is added to clause 10.3; Cross Border Wire Transfer Reports are written into the guidance note; and the list of countries from which an NRI customer’s IP address may emanate is substituted with nine jurisdictions.
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