The Reserve Bank of India has issued Circular No. 20 requiring Authorized Dealer banks to maintain and update a list of their offices handling Rupee accounts for non-resident banks. This reflects ongoing regulatory oversight on foreign banking institutions operating in India.
RBI Circular on Accounts of Non-resident Banks Issued
The Reserve Bank of India (RBI) has released A.P. (DIR Series) Circular No. 20, mandating all Authorized Dealer Category-I banks to furnish an up-to-date list of their branches that maintain Rupee accounts for non-resident banks. This directive was issued on September 2, 2026, and requires compliance immediately.
The RBI's focus on ensuring that banks maintain accurate records of their non-resident banking operations may stem from a desire to enhance transparency and oversight in the financial sector. The regulation reinforces the provisions specified in earlier circulars and seeks to align current banking practices with the evolving international standards.
Practitioners need to ensure their compliance with this directive, as failure to provide accurate information could lead to regulatory penalties. Banks are advised to review their internal processes for maintaining these records to ensure they are compliant with RBI directives.
Citations
- RBI Circular No. 20 (2026) A.P. (DIR Series)