RBI Circular for May 2026
Risk Management and Inter-Bank Dealings
April 20, 2026
1. Attention of Authorised Dealers is invited to the A.P. (DIR Series) Circular No. 24 dated March 27, 2026, the A.P. (DIR Series) Circular No. 03 dated April 01, 2026, and the Master Direction – Risk Management and Inter-Bank Dealings dated July 05, 2016, as amended from time to time.
2. On a review, it has now been decided to withdraw the instructions issued vide A.P. (DIR Series) Circular No. 03 dated April 01, 2026. Further, it has been decided that Authorised Dealers shall not undertake any foreign exchange derivative contract involving INR with their related parties except for the following:
(i) cancellation and rollover of existing contracts; and
(ii) transactions undertaken with non-related non-resident users on a back-to-back basis in terms of the Master Direction – Risk Management and Inter-Bank Dealings dated July 05, 2016, as amended from time to time.
3. ‘Related parties’ shall have the same meaning as assigned to it under the Indian Accounting Standard (Ind AS) 24 – Related Party Disclosures or International Accounting Standard (IAS) 24 – Related Party Disclosures or any other equivalent accounting standards.
4. These instructions shall be applicable with immediate effect.
5. The directions contained in this circular have been issued under Sections 10(4), 11(1) and 11(2) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 – amendment
April 10, 2026
1. Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified, vide Notification No. FEMA. 396/2019-RB dated October 17, 2019 (hereinafter “FEMA 396”) and the Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 07, 2025 (hereinafter “Master Direction”), as amended from time to time.
2. Over the years, the Reserve Bank has issued directions relating to, inter alia, investments in debt instruments by Non-Resident Indians (NRIs) and offering of debt instruments acquired in terms of FEMA 396 as collateral to recognized Stock Exchanges in India for transactions in exchange traded derivative contracts. These instructions have now been consolidated in the aforesaid Master Direction.
3. The updated Master Direction is enclosed.
4. AD Category–I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
5. The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.
Guidelines to facilitate faster cross-border inward payments
April 09, 2026
1. The Reserve Bank’s Payments Vision 2025 aims to bring efficiency in the cross- border payments aligning with the G20 roadmap for cross-border payments that has set targets for achieving cheaper, faster, more transparent, and more accessible cross-border payments.
2. The speed of the cross-border payments is affected by several factors. One of the challenges with speed of payments is experienced at the beneficiary leg i.e., the time taken from receipt of the payment at the beneficiary bank till credit to the beneficiary account.
3. Review of the extant process for inward cross-border payments indicated the need for streamlining the processes at the beneficiary bank for ensuring timely intimation of payment information and credit to the beneficiary’s account. Accordingly, banks are advised as under:
a. Banks shall inform their customer of the receipt of cross-border inward transactions immediately on receipt of inward message. Messages received after close of operating hours of banks shall be informed to customer immediately at the start of the next business day.
b. It is observed that several banks rely upon end-of-day statements of the nostro account for confirming and reconciling receipts in nostro accounts, resulting in delay in crediting funds to the beneficiary’s account. To expedite this process, banks are advised to undertake reconciliation and confirmation of credit in the nostro account frequently either on near real time basis or at periodic intervals. The reconciliation interval should normally not exceed one hour.
c. Banks shall endeavour to credit the inward payments received during the foreign exchange market hours within the same business day to the beneficiary’s account, and credit the inward payments received after market hours on the next business day, subject to compliance with the extant FEMA and other regulatory requirements.
d. Banks may, based on their risk assessment and subject to compliance with extant FEMA guidelines, put in place straight through process for crediting the inward payments to the account of individual residents.
e. Banks may, within a reasonable time frame, endeavour to provide digital interface to their customers to facilitate foreign exchange transactions, including submission of documents or information, and monitoring of transactions.
4. The directions at para 3 above shall be effective six months from the date of this circular.
5. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).
Floating Rate Savings Bonds, 2020 (Taxable) – FRSB 2020 (T) – Operational Guidelines
April 02, 2026
1. A reference is invited to the circular IDMD.CDD.No.3155/13.01.299/2019-20 dated June 30, 2020 (updated on June 27, 2022), issued by the Reserve Bank of India on Operational Guidelines relating to Floating Rate Savings Bonds, 2020 (Taxable) – FRSB 2020 (T).
2. In exercise of the powers conferred under Section 29 (2) of the Government Securities Act, 2006 and of all the powers enabling Reserve Bank of India in this behalf, the operational guidelines contained in the aforesaid circular have been reviewed. The revised operational guidelines are being issued herewith and shall come into effect from the date of this circular.
3. The guidelines contained in this circular supersede the operational guidelines on FRSB 2020 (T) issued on June 30, 2020.