The Reserve Bank of India has withdrawn several outdated FEMA circulars as part of its ongoing effort to streamline the regulatory framework. This move targets circulars issued since June 1, 2000, that are no longer operative under current foreign exchange rules.
Why RBI Is Withdrawing These FEMA Circulars
Over the years, many circulars issued under the Foreign Exchange Management Act, 1999 have become redundant. Some overlap with newer directives, while others were superseded by subsequent regulatory amendments. Therefore, the RBI decided a structured review was necessary to reduce confusion and improve clarity.
The review covers all circulars listed in the Annex of RBI Circular No. 18 (A.P. DIR Series), dated June 24, 2026. As a result, only those circulars confirmed as no longer operative are being formally withdrawn. This ensures the regulatory framework remains clean and up to date.
What This Means for Authorised Persons and Customers
All Authorised Persons — including banks and financial institutions dealing in foreign exchange — must note these withdrawals. Additionally, they are required to inform their relevant constituents about the changes. This helps businesses and individuals stay compliant with current foreign exchange regulations.
However, this withdrawal does not affect any permissions or approvals required under other applicable laws. The directions have been issued under Section 10(4) and Section 11(1) of FEMA, 1999. So, Authorised Persons should continue following all other existing legal requirements without interruption.
Meanwhile, the RBI’s rationalisation drive signals a broader push toward a leaner and more transparent regulatory environment. For example, removing obsolete rules reduces the compliance burden on banks and foreign exchange dealers. This step, therefore, benefits the entire ecosystem of cross-border transactions in India.
Key Takeaway
The RBI’s withdrawal of redundant FEMA circulars is a positive step toward regulatory simplification. Businesses involved in foreign exchange transactions should review the updated Annex carefully. Additionally, they should consult their compliance teams to ensure no outdated circular still influences their current processes.
For the full list of withdrawn circulars, refer to the official RBI notification linked below.
Read the official RBI notification here.
Source: RBI Notifications
