RBI Withdraws Seven Inoperative FEMA Circulars under A.P. (DIR Series) Circular No. 21

Summary: The Reserve Bank of India (RBI), through A.P. (DIR Series) Circular No. 21 dated September 08, 2026, has withdrawn seven earlier circulars issued under the Foreign Exchange Management Act, 1999 (FEMA). The action forms part of RBI’s ongoing initiative to rationalise the regulatory framework by reviewing circulars issued since June 01, 2000. The RBI has identified seven circulars that have ceased to be operative because of subsequent regulatory amendments, redundancy, overlap or supersession by newer directives. The withdrawn circulars relate principally to External Commercial Borrowings (ECB), borrowing and lending in rupees, and the Money Transfer Service Scheme.

The seven circulars being withdrawn include those concerning issuance of rupee-denominated bonds overseas, ECBs in Indian Rupees, liberalisation of the definition of the infrastructure sector under the ECB policy, investments by persons resident outside India in specified tax-free secured redeemable non-convertible bonds, import of services/technical know-how/license fees under the ECB policy, the list of sub-agents under the Money Transfer Service Scheme, and ECB by Small Industries Development Bank of India. The circular numbers and dates are specified in the Annex.

The RBI has directed Authorised Persons to bring the contents of the circular to the notice of their concerned constituents. The directions have been issued under Sections 10(4) and 11(1) of FEMA, 1999 and are without prejudice to any permissions or approvals required under other laws. The development is consistent with RBI’s broader consolidation and rationalisation of the FEMA regulatory framework.

Reserve Bank of India

RBI/2026-27/254
A.P. (DIR Series) Circular No. 21 | Dated:  September 08, 2026

To

All Authorised Persons

Madam / Sir,

Review of Circulars issued under Foreign Exchange Management Act, 1999 (FEMA)

In pursuance of the Reserve Bank’s ongoing initiative to rationalise the regulatory framework under the Foreign Exchange Management Act, 1999 (FEMA), a comprehensive review of circulars issued since June 01, 2000, is underway.

2. In furtherance of the aforementioned initiative, seven circulars as listed at Annex, that have ceased to be operative owing to subsequent regulatory amendments, redundancy, overlap or supersession by newer directives, are being withdrawn.

3. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.

4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Dr. Aditya Gaiha)
Chief General Manager-in-Charge

Annex

List of A.P. (DIR Series) Circulars superseded