The Reserve Bank of India has directed Authorized Dealer Category-I banks to furnish an updated list of all their offices and branches that maintain Rupee accounts for non-resident banks. This directive aims to ensure better regulatory oversight and compliance in the banking sector.
RBI Circular on Accounts of Non-resident Banks Issued
The Reserve Bank of India (RBI) has issued a directive to all Authorized Dealer Category-I banks as part of its A.P. (DIR Series) Circular No. 20 dated September 2, 2026. The circular mandates these banks to provide an updated list detailing all of their offices and branches that maintain Rupee accounts for non-resident banks.
This requirement is in accordance with the guidelines stated in Para B.2(ii) and B.8(i) of Part B of A.P. (DIR Series) Circular No. 92, which was originally issued on April 4, 2003. The intention behind this directive is to enhance transparency and regulatory compliance within the framework governing non-resident banking operations in India.
By ensuring that all branches maintaining such accounts are reported, the RBI aims to mitigate risks and improve the monitoring of foreign bank operations in the domestic financial market. This step is crucial in managing foreign capital inflows and maintaining the integrity of the financial system.
Legal practitioners and banking professionals should familiarize themselves with this circular as it underscores the importance of compliance and accurate reporting within the banking sector. It also highlights the increasing scrutiny over non-resident banking operations.
Citations
- RBI A.P. (DIR Series) Circular No. 20 (2026)