The RBI issued a circular on Rupee accounts maintained by non-resident banks requiring Authorized Dealer banks to provide an updated list of all their offices or branches holding such accounts. The directive aims to enhance the regulation and reporting mechanisms related to foreign currency transactions.
RBI Circular on Rupee Accounts of Non-resident Banks
On September 2, 2026, the Reserve Bank of India (RBI) released A.P. (DIR Series) Circular No. 20, mandating all Authorized Dealer (AD) Category-I banks to furnish a comprehensive list of their branches and offices that maintain Rupee accounts for non-resident banks. This directive builds upon the previous guidelines issued under Circular No. 92 dated April 4, 2003.
The RBI emphasized the importance of transparency in cross-border banking transactions, particularly in the management and operations of non-resident banks' Rupee accounts. Such measures are crucial to ensure compliance with existing financial regulations and to uphold the integrity of the banking system.
In accordance with this circular, designated AD banks are now obligated to provide this information in a timely and accurate manner, thus enhancing the oversight function of the RBI. Failure to comply may result in regulatory action against the financial institutions involved.
This circular affects practitioners in the financial and banking sector, as they must ensure that their institutions adhere to these reporting requirements and manage their non-resident accounts diligently.
Citations
- RBI Circular No. 20 (2026)