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.
Who it affects
Authorised Persons, Banks and Foreign Exchange Dealers, Regulated entities filing FEMA compounding applications
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.