RBI has undertaken a comprehensive review of circulars issued under FEMA since 2000 to streamline the regulatory framework.
Review of Circulars Issued under Foreign Exchange Management Act, 1999
On June 24, 2026, the Reserve Bank of India (RBI) issued A.P. (DIR Series) Circular No. 18, announcing a review of circulars released under the Foreign Exchange Management Act, 1999 (FEMA). This initiative is part of the RBI's strategy to rationalize the regulatory framework governing foreign exchange management.
The review encompasses circulars issued since June 1, 2000, to identify which provisions are no longer operational and to consolidate the regulatory framework for increased clarity and efficiency in compliance. This proactive measure aims to eliminate redundancy and provide a clear guideline for authorized persons involved in foreign exchange transactions.
Legal professionals advising clients in compliance with FEMA should assess the updated guidelines to ensure adherence and prepare for any alterations in operational practices resulting from the review.
Citations
- Review of Circulars Issued under Foreign Exchange Management Act, 1999 (FEMA)
