Summary: The Reserve Bank of India (RBI), through A.P. (DIR Series) Circular No. 20 dated September 02, 2026, has dispensed with two reporting requirements applicable to Authorised Dealer Category-I (AD Category-I) banks in relation to accounts of non-resident banks. The circular is titled “Deposits and Accounts – Accounts of Non-resident banks” and is addressed to all Authorised Dealer Category-I banks.
The circular refers to Para B.2(ii) and B.8(i) of Part B of A.P. (DIR Series) Circular No. 92 dated April 4, 2003. The referenced framework concerned reporting relating to Rupee accounts maintained by non-resident banks and temporary overdrawals by overseas branches or correspondents.
Under the earlier requirements, AD banks were required to furnish an up-to-date list of all their offices/branches maintaining Rupee accounts of non-resident banks as at the end of December each year, before January 15 of the following year, to the Central Office of the Reserve Bank. The earlier instructions also required reporting of temporary overdrawals by overseas branches/correspondents exceeding the permissible limit where such excess was not adjusted within five days. The historical RBI framework confirms the reporting requirement concerning branches maintaining Rupee accounts of non-resident banks and the reporting mechanism for excess overdrafts.
Following a review, RBI has now decided to dispense with both reporting requirements with immediate effect. Accordingly, the circular removes the specified periodic reporting obligation concerning the list of offices/branches maintaining Rupee accounts of non-resident banks and the reporting requirement for specified temporary overdrawals that remain unadjusted within five days.
The change is therefore focused on regulatory reporting and compliance simplification. The circular does not state that AD Category-I banks may discontinue maintaining, operating or monitoring Rupee accounts of non-resident banks; rather, it specifically dispenses with the two reporting requirements identified in paragraph 2 of the circular. The distinction is important because the circular addresses reporting obligations rather than the underlying facility of maintaining such accounts.
The directions have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). The circular expressly states that they are without prejudice to permissions or approvals, if any, required under any other law.
The measure takes effect immediately from September 02, 2026, the date of the circular. The supplied circular does not prescribe any transition period, exemption, monetary threshold or replacement reporting mechanism for the two requirements that have been dispensed with. Its practical effect for affected AD Category-I banks is to eliminate the specified reporting submissions to RBI, thereby reducing the associated periodic compliance burden.
Reserve Bank of India
RBI/2026-27/251
A.P. (DIR Series) Circular No. 20 | Dated: September 02, 2026
To
All Authorised Dealer Category-I banks
Madam / Sir
Deposits and Accounts – Accounts of Non-resident banks
Please refer to Para B.2(ii) and B.8(i) of Part B of the A.P. (DIR Series) Circular No.92, dated April 4, 2003, in terms of which AD banks were required to:
1. Furnish an up-to-date list of all its offices/branches maintaining Rupee accounts of non-resident banks, as at the end of December each year before 15th January of the following year to the Central Office of Reserve Bank, and
2. Report temporary overdrawals by overseas branches/ correspondents over permissible limit, if not adjusted within five days, to the Central Office of Reserve Bank.
3. On a review, it has been decided to dispense with the above reporting requirements with immediate effect.
4. 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/approvals, if any, required under any other law.
Yours faithfully
(N. Senthil Kumar)
Chief General Manager
