RBI Updates Account Details for FEMA Compounding Fees
Current · Source: Reserve Bank of India · RBI/FED/2025-26/98 · issued 24 Nov 2025 · ~1 min read
Quick answerThe RBI has amended the Master Directions on compounding of FEMA contraventions to revise the bank account where the application fee and the compounding amount must be paid. Payments will now be accepted only through NEFT or RTGS to the new account specified in Annexure I.
The rule, in the simplest words
Banks and foreign exchange dealers must use new NEFT/RTGS account numbers for compounding fees and amounts.
Payments sent to the old account will be rejected.
Authorised persons must update their internal payment instructions and notify clients and counterparties of the change.
How it plays out — a real example
Rahul, a forex & trade-finance officer in Indore, ensures that all compounding fees and amounts are sent to the new NEFT/RTGS account numbers to avoid any delays in processing. He updates the internal payment instructions and notifies the clients and counterparties of the change to maintain compliance with the RBI regulations.
What changed
The circular replaces the previous account details with a new set of NEFT/RTGS account numbers for receiving compounding fees and amounts. Annexure I of the Master Directions has been updated accordingly. No other procedural or substantive changes to the compounding process are introduced.
What it means for you
All authorised persons, including banks and foreign exchange dealers, must route fee and compounding payments to the newly listed account. Payments sent to the old account will be rejected, potentially delaying the compounding of contraventions. Compliance monitoring will focus on correct use of the revised account details.
What you must do
Update internal payment instructions to reflect the new NEFT/RTGS account numbers.
Notify all clients and counterparties handling FEMA compounding applications of the change.
Verify that any pending or future fee payments are directed to the revised account.
Amend relevant SOPs and compliance checklists to incorporate the new account details.
When does the new account detail become mandatory?
The revised account details are effective from the date of the circular, i.e., 24 November 2025. All payments thereafter must use the new NEFT/RTGS account.
What happens if a payment is sent to the old account?
The RBI may reject the payment, and the applicant could face a delay in the compounding process until the correct payment is made.
Do I need RBI approval to change my internal payment routing?
No separate approval is required; you only need to align your payment routing with the updated account details as per the circular.
📜 Read the original circular — full text as issued by RBI
RBI/FED/2025-26/98
A.P. (DIR Series) Circular. No 15/2025-26
November 24, 2025
To,
All Authorised Persons
Madam / Sir,
Amendments to Directions - Compounding of Contraventions under FEMA, 1999
Attention of Authorised Persons is invited to Master Directions on compounding of contraventions under FEMA, 1999, dated April 22, 2025 .
2. In order to streamline the receipt of compounding application fee and ‘sum for which a contravention is compounded’ (‘compounding amount’), it has been decided to change the account details of account where compounding application fee and compounding amount will be received through National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS). Accordingly, Annexure I of the aforesaid Master Directions has been modified to include the revised account details.
3. All Authorised Persons may bring the guidelines contained in this circular to the notice of their constituents.
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/approval, if any, required under any other law.
Yours faithfully,
(Dr. Aditya Gaiha)
Chief General Manager in Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/FED/2025-26/98 · issued 24 Nov 2025. The plain-English explanation above is BankPulse’s own independent summary.
Notify all clients and counterparties handling FEMA compounding applications of the change.
📜 Compliance
Update internal payment instructions to reflect the new NEFT/RTGS account numbers.
Verify that any pending or future fee payments are directed to the revised account.
Amend relevant SOPs and compliance checklists to incorporate the new account details.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Authorised Persons, Banks and Foreign Exchange Dealers, Regulated entities filing FEMA compounding applications), your first concrete step on “RBI Updates Account Details for FEMA Compounding Fees” is: “Update internal payment instructions to reflect the new NEFT/RTGS account numbers.” (RBI issued this 24 Nov 2025).
Action required: Update internal payment instructions to reflect the new NEFT/RTGS account numbers.
Action required: Notify all clients and counterparties handling FEMA compounding applications of the change.
Action required: Verify that any pending or future fee payments are directed to the revised account.
Action required: Amend relevant SOPs and compliance checklists to incorporate the new account details.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12924&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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