RBI withdraws seven old FEMA circulars — five on ECB, one on tax-free bonds, one on MTSS sub-agents: A.P. (DIR Series) Circular No. 21
RBI is reviewing every circular issued under FEMA since 1 June 2000. By A.P. (DIR Series) Circular No. 21 dated 8 September 2026 it has withdrawn seven circulars issued between 2012 and 2015 that had ceased to be operative: five on External Commercial Borrowings, one on non-resident investment in tax-free bonds and one on the Money Transfer Service Scheme.
Key facts
- In force
- 8 September 2026
- Who it affects
- Authorised Persons under FEMA and their constituents, ECB borrowers, FEMA practitioners
- Section
- FEMA & RBI
- Published
- 8 September 2026
In 30 seconds
- A.P. (DIR Series) Circular No. 21 is dated 8 September 2026 and is addressed to all Authorised Persons.
- A comprehensive review of FEMA circulars issued since 1 June 2000 is underway, as part of RBI’s initiative to rationalise the FEMA regulatory framework.
- Seven circulars are withdrawn because they have ceased to be operative owing to later amendments, redundancy, overlap or supersession.
- Five relate to External Commercial Borrowings, including the 2015 circular on Rupee denominated bonds overseas.
- Authorised Persons are asked to bring the circular to the notice of their constituents.
हिंदी में सार
RBI ने A.P. (DIR Series) Circular No. 21 (8 सितंबर 2026) से FEMA के सात पुराने सर्कुलर वापस ले लिए हैं — पाँच External Commercial Borrowings (ECB) पर, एक tax-free bonds में अनिवासियों के निवेश पर और एक Money Transfer Service Scheme के sub-agents पर। RBI के अनुसार ये बाद के संशोधनों या नए निर्देशों के कारण पहले ही निष्प्रभावी हो चुके थे। 1 जून 2000 से जारी सभी FEMA सर्कुलरों की समीक्षा चल रही है।
What RBI has done
By A.P. (DIR Series) Circular No. 21 dated 8 September 2026 (RBI/2026-27/254), addressed to all Authorised Persons, the Reserve Bank of India has withdrawn seven circulars issued under the Foreign Exchange Management Act, 1999.
RBI says this is part of its ongoing initiative to rationalise the regulatory framework under FEMA. A comprehensive review of circulars issued since 1 June 2000 is underway.
Why these seven
According to the circular, the seven have ceased to be operative owing to subsequent regulatory amendments, redundancy, overlap or supersession by newer directives. In other words, RBI describes them as already inoperative; the circular formally takes them off the books.
The circulars withdrawn
| Sr. | Subject | A.P. (DIR Series) Circular No. | Date |
|---|---|---|---|
| 1 | External Commercial Borrowings (ECB) Policy – Issuance of Rupee denominated bonds overseas | 17 | 29 September 2015 |
| 2 | External Commercial Borrowings (ECB) in Indian Rupees | 25 | 3 September 2014 |
| 3 | ECB Policy – Liberalisation of definition of Infrastructure Sector | 85 | 6 January 2014 |
| 4 | Borrowing and Lending in Rupees – Investments by persons resident outside India in the tax free, secured, redeemable, non-convertible bonds | 81 | 24 December 2013 |
| 5 | ECB Policy – Import of Services, Technical know-how and License Fees | 119 | 26 June 2013 |
| 6 | Money Transfer Service Scheme – List of Sub Agents | 49 | 7 November 2012 |
| 7 | ECB Policy – ECB by Small Industries Development Bank of India | 48 | 6 November 2012 |
What the circular does not do
The circular does not announce any new rule on External Commercial Borrowings, rupee bonds or the Money Transfer Service Scheme. It does not name the later regulations or directions that replaced each of the seven circulars. Readers should therefore not read it as a change in the current ECB or MTSS framework — only as the removal of older circulars that RBI says no longer operate.
The directions are issued under section 10(4) and section 11(1) of FEMA, 1999 and are without prejudice to permissions or approvals required under any other law.
What Authorised Persons and borrowers should do
- Authorised Persons should bring the circular to the notice of their constituents concerned, as RBI has asked.
- Remove the seven circulars from internal reference lists, manuals and checklists.
- Where a document or opinion cites one of these circulars as authority, check the position under the current regulations and directions instead.
- Expect further withdrawals: the review of circulars issued since June 2000 is described as underway, not complete.
Questions and answers
How many FEMA circulars has RBI withdrawn by Circular No. 21?
Seven A.P. (DIR Series) circulars, issued between 6 November 2012 and 29 September 2015, listed in the Annex to the circular.
Why were they withdrawn?
RBI says they have ceased to be operative owing to subsequent regulatory amendments, redundancy, overlap or supersession by newer directives.
Does this change the ECB rules?
The circular does not announce any new ECB rule. It withdraws five old ECB circulars that RBI describes as no longer operative, and does not name the provisions that replaced them.
Is this a one-time exercise?
No. The circular says a comprehensive review of FEMA circulars issued since 1 June 2000 is underway, and the withdrawal of these seven is in furtherance of that initiative.
Published 8 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.