RBI/FED/2026-27/298 A.P. (DIR Series) Circular. No 28/2026-27
October 23, 2026
To,
All Authorised Dealer Category-I banks and other Authorised Persons
Madam / Sir,
Delegation of Compounding of certain Contraventions under FEMA, 1999 to Regional Offices of the Reserve Bank
Attention of Authorised Dealer (AD) Category - I banks and other Authorised Persons is invited to
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A.P. (DIR Series) Circular No. 17/2024-25 dated October 1, 2024 and
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Master Directions on Compounding of Contraventions under FEMA, 1999, dated April 22, 2025
2. As laid down in the above directions, the applications for compounding of contraventions pertaining to transactions related to Overseas Investments and Borrowing and Lending, and Guarantees are currently being received at Central Office of the Reserve Bank. The compounding of contraventions related to certain categories of transactions related to foreign direct investment were being carried out by the Regional Offices of the Reserve Bank.
3. As a measure for promoting customer service, the powers to compound contraventions related to Overseas Investments and Borrowing and Lending, and Guarantees transactions have also been delegated to the select Regional Offices of the Reserve Bank as follows:
A. Overseas Investment transactions
Compounding applications related to contraventions of provisions under
(i) Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2000 dated May 03, 2000, notified vide Notification No FEMA 19/RB-2000, as amended from time to time, or
(ii) Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 dated July 07, 2004, notified vide Notification No FEMA 120/RB-2004, as amended from time to time, or
(iii) Foreign Exchange Management (Overseas Investments) Rules, 2022 dated August 22, 2022, or
(iv) Foreign Exchange Management (Overseas Investments) Regulations, 2022, dated August 22, 2022, notified vide notification No. FEMA 400/2022-RB
(v) Any other provisions of the Act, rules and regulations issued thereunder, as far as the contraventions are related to underlying overseas investments transactions.
Source: CA Sansaar