What changed
RBI issued A.P. (DIR Series) Circular No. 06 on April 10, 2026, enclosing an updated Master Direction on non-resident investment in debt instruments. This consolidates previous instructions on NRI debt investments and using such debt as collateral for exchange-traded derivatives. No new regulatory changes were introduced; it's a compilation exercise.
What it means for you
For banks, this circular simplifies compliance by bringing all related instructions into one Master Direction, reducing the need to track multiple circulars. Lenders must ensure their systems and customer advisories align with the updated consolidated document. No immediate operational changes are required, but banks should verify they are referencing the latest version.
What you must do
- Review the updated Master Direction enclosed with the circular and update internal compliance manuals.
- Notify all relevant departments (e.g., forex, NRI services, derivatives) about the consolidation.
- Advise NRI customers and constituents about the updated framework for debt investments and collateral usage.
- Ensure any references to older circulars on NRI debt investments are replaced with the new Master Direction.
Who it affects
AD Category-I banks, NRI customers investing in Indian debt instruments, Compliance and forex departments of banks
Does this circular introduce any new rules for NRI debt investments?
No, this circular merely consolidates existing instructions into one updated Master Direction. No new policy changes have been introduced.
What should AD Category-I banks do with this circular?
Banks must bring the contents to the notice of their constituents and customers, and ensure they use the updated Master Direction for compliance.
Which regulations are referenced in this circular?
The circular references FEMA 396 (Debt Instruments Regulations, 2019) and the Master Direction dated January 7, 2025, as amended.