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
By 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.
Key facts
- Published
- 2 September 2026
- Section
- FEMA & RBI
- What it is
- Relief
- In force
- 2 September 2026 (immediate effect)
- Who it affects
- Authorised Dealer Category-I banks maintaining Rupee accounts of non-resident banks
In 30 seconds
- A.P. (DIR Series) Circular No. 20 is dated 2 September 2026 and is addressed to all Authorised Dealer Category-I banks.
- It removes two requirements in Part B of A.P. (DIR Series) Circular No. 92 dated 4 April 2003 — paragraphs B.2(ii) and B.8(i).
- AD banks need no longer send RBI’s Central Office the year-end list of offices/branches maintaining Rupee accounts of non-resident banks.
- They need no longer report temporary overdrawals by overseas branches/correspondents beyond the permissible limit that are not adjusted within five days.
- Both are dispensed with immediately. The circular changes reporting only.
हिंदी में सार
RBI ने A.P. (DIR Series) Circular No. 20 (2 सितंबर 2026) से AD Category-I बैंकों की दो पुरानी रिपोर्टिंग शर्तें हटा दी हैं, जो 4 अप्रैल 2003 के Circular No. 92 से चली आ रही थीं। अब बैंकों को non-resident बैंकों के रुपया खाते रखने वाली शाखाओं की सालाना सूची (दिसंबर-अंत की स्थिति, 15 जनवरी से पहले) नहीं भेजनी होगी, और पाँच दिन में समायोजित न हुए अस्थायी overdrawal की रिपोर्ट भी नहीं देनी होगी। यह तुरंत प्रभाव से लागू है।
Before and now
Yearly branch list (position at end-December, due before 15 January) and a report of overdrawals not adjusted within five days — both to RBI’s Central Office.
Both reporting requirements dispensed with from 2 September 2026.
What the circular says
The Reserve Bank of India has issued A.P. (DIR Series) Circular No. 20 dated 2 September 2026 (RBI/2026-27/251) on “Deposits and Accounts – Accounts of Non-resident banks”. It is addressed to all Authorised Dealer Category-I banks.
The circular refers to two paragraphs in Part B of A.P. (DIR Series) Circular No. 92 dated 4 April 2003. Under those paragraphs, AD banks had two reporting duties to the Central Office of the Reserve Bank. On a review, RBI has decided to dispense with both, with immediate effect.
The two reports that go
| Paragraph of the 2003 circular | What AD banks had to do | Position now |
|---|---|---|
| Para B.2(ii) | Furnish an up-to-date list of all offices/branches maintaining Rupee accounts of non-resident banks, as at the end of December each year, before 15 January of the following year | Dispensed with |
| Para B.8(i) | Report temporary overdrawals by overseas branches/correspondents over the permissible limit, if not adjusted within five days | Dispensed with |
What does not change
The circular is limited to these two reporting requirements. It does not say that the permissible limit on temporary overdrawals has changed, and it does not alter any other part of the 2003 circular. It only removes the duty to report to RBI’s Central Office.
The directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and are without prejudice to permissions or approvals, if any, required under any other law.
Who is affected
The change concerns Authorised Dealer Category-I banks that maintain Rupee accounts of non-resident banks, and their FEMA reporting teams. It does not place any new obligation on exporters, importers or other customers.
What AD banks should do
- Stop the annual year-end branch-list submission; the list as at the end of December need not be sent before 15 January.
- Stop reporting to RBI’s Central Office the temporary overdrawals that remain unadjusted beyond five days.
- Update internal compliance calendars and return checklists to remove both items with effect from 2 September 2026.
- Continue to follow the rest of the instructions on accounts of non-resident banks, which this circular leaves as they are.
Questions and answers
What does A.P. (DIR Series) Circular No. 20 of 2026-27 change?
It dispenses with two reporting requirements under paragraphs B.2(ii) and B.8(i) of Part B of A.P. (DIR Series) Circular No. 92 dated 4 April 2003, relating to Rupee accounts of non-resident banks.
Do AD banks still have to send the yearly list of branches holding non-resident bank Rupee accounts?
No. The requirement to furnish that list as at the end of December each year, before 15 January of the following year, has been dispensed with.
Is overdrawal in a non-resident bank’s Rupee account still to be reported to RBI?
The requirement to report temporary overdrawals over the permissible limit that are not adjusted within five days has been dispensed with. The circular does not say the permissible limit itself has changed.
From when does this apply?
With immediate effect — the circular is dated 2 September 2026.
Published 2 September 2026. Updated 4 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.