The RBI has undertaken a review of circulars issued under FEMA since 2000 to streamline and rationalise the regulatory framework. This initiative focuses on restructuring outdated regulations and improving operational efficiency.
RBI's Review of Circulars under FEMA, 1999
In a recent move, the RBI announced a comprehensive review of all circulars issued under the Foreign Exchange Management Act, 1999 (FEMA) since June 1, 2000. This was detailed in the A.P. (DIR Series) Circular No. 18, dated June 24, 2026. The objective of this review is to eliminate redundant regulatory guidelines that no longer serve their intended purpose.
By rationalizing these circulars, the RBI aims to simplify compliance for Authorized Persons and facilitate better regulatory oversight, ultimately contributing to a healthier foreign exchange environment.
This initiative will be highly relevant for compliance officers and legal advisors within firms dealing with foreign exchange issues, as it is essential to update internal policies in accordance with the revised regulatory framework.
Citations
- A.P. (DIR Series) Circular No. 18, 2026