UNSC Sanctions Update under UAPA Section 51A

As per Section 51A of the Unlawful Activities (Prevention) Act (UAPA), 1967, and the RBI KYC Directions, 2025 (as amended), regulated entities must ensure that no accounts are maintained for individuals or entities listed in United Nations Security Council (UNSC) sanctions lists.

The Ministry of External Affairs (MEA) has notified, via UNSC press release SC/16325 dated March 30, 2026, the addition of one individual to the ISIL (Da’esh) and Al-Qaida Sanctions List. The listing attracts measures including asset freeze, travel ban, and arms embargo.

New Listing

• Name: Hamidah Nabagala
• DOB: March 9, 1996
• Nationality: Uganda
• Location: Democratic Republic of the Congo
• Details: Linked to ISIL financing activities in Central Africa and a 2021 Kampala bombing case.

Required Actions

• Conduct screening to identify any matches with the updated sanctions list.
• Take actions as per Chapter IX of RBI KYC Directions, 2025 and UAPA Order (as amended).
• Forward any de-listing requests to the Ministry of Home Affairs (MHA) or through the UN Ombudsperson.

Regulated entities are required to note the update and ensure strict compliance.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13357

FEMA Guarantee Reporting – Key Requirements (2026)

Under FEMA, 1999 and the Foreign Exchange Management (Guarantees) Regulations, 2026 [FEMA 8 (R)], entities must report guarantee-related transactions through their Authorised Dealer (AD) bank.

Forms for Reporting

• Form GRN Issue – Guarantee issuance
• Form GRN Modification – Changes (amount, extension, pre-closure)
• Form GRN Invocation – Invocation of guarantee

Submission & Process

• AD banks must submit returns to RBI within 30 days from quarter-end via CIMS.
• A Unique Guarantee Transaction Number (GTN) is required for each guarantee.

Late Submission Fees

• Applicable on invocation amount for delayed reporting of Form GRN Invocation.
• Considered Nil for Issue and Modification forms.

These directions are effective immediately, and Authorised Persons must inform relevant customers.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13358

RBI Streamlines Overseas Investment Reference Processing

Effective April 01, 2026, Overseas Investment references submitted by Persons Resident in India through AD banks will be processed at seven designated Regional Offices of the Reserve Bank, instead of the Central Office.

AD banks must submit references via the PRAVAAH portal based on UIN mapping:

• AH → Ahmedabad | BG → Bengaluru | BL/BY/PJ → Mumbai
• BN/CA/GA/GH → Kolkata | CG/JM/JR/KA/ND/PT → New Delhi
• HY → Hyderabad | KO/MA → Chennai

Amendments to the Master Direction – Overseas Investment (July 24, 2024) are underway. AD banks should inform relevant customers.

Issued under Sections 10(4), 11(1), and 11(2) of FEMA, 1999.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13359

Revised RBI Guidelines on Risk Management & Inter-Bank Dealings

The Reserve Bank has introduced revised directions on Risk Management and Inter-Bank Dealings, applicable with immediate effect, in continuation of existing circulars and the Master Direction dated July 05, 2016.

Key changes for Authorised Dealers (ADs):

• Restriction on Non-Deliverable Derivatives: ADs shall not offer non-deliverable derivative contracts involving INR to any user. Deliverable derivatives may continue for hedging purposes, subject to no offsetting non-deliverable positions.
• Prohibition on Rebooking: Rebooking of any cancelled foreign exchange derivative contract involving INR (deliverable or non-deliverable) is not permitted after the issuance of these instructions.
• Restriction on Related Parties: ADs shall not undertake foreign exchange derivative contracts involving INR with related parties, as defined under applicable accounting standards (Ind AS 24 / IAS 24 or equivalent).

ADs may obtain necessary information or documentation from users to ensure compliance.

These directions are issued under Sections 10(4), 11(1), and 11(2) of the Foreign Exchange Management Act, 1999, and remain in force until further review.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13363

RBI Update: Forex Counter Access Expanded at International Airports

The Reserve Bank has revised the guidelines governing money changing activities at international airports in India.

Residents are now permitted, along with non-residents, to exchange Indian Rupee notes at foreign exchange counters located in departure halls within Duty-Free or Security Hold Areas beyond Immigration or Customs desks. The Master Direction on Money Changing Activities is being amended accordingly.

Authorised Persons are advised to inform their customers and constituents of this update.

These directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, and are without prejudice to approvals required under any other applicable laws.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13364

RBI Issues Revised Operational Guidelines for Floating Rate Savings Bonds, 2020 (Taxable)

The Reserve Bank of India has issued revised operational guidelines for Floating Rate Savings Bonds, 2020 (Taxable) [FRSB 2020 (T)], superseding the earlier guidelines dated June 30, 2020. The revised framework is effective from the date of issuance of the circular.

Key Highlights:

• Issuance & Eligibility: Bonds are issued by the Government of India through RBI-authorised Receiving Offices (ROs) to eligible investors, in electronic form via Bond Ledger Accounts (BLA).
• Application Process: Applications may be submitted offline or online, with PAN or prescribed declaration. Facilities for online applications must be enabled by September 30, 2026.
• Interest Structure: Interest is linked to the National Savings Certificate (NSC) rate with a spread of +35 basis points and is reset semi-annually. Payments are made on January 1 and July 1.
• Tenure & Redemption: Bonds have a maturity period of 7 years. Premature encashment is permitted subject to specified conditions.
• Nomination & Claims: Nomination facilities are available, with defined procedures for registration, change, and settlement in case of death of the investor.
• Reporting & Compliance: ROs are required to ensure timely remittance, reporting, audit compliance, and adherence to KYC and data protection requirements.
• Investor Services: Online access to BLA details, service requests, and grievance redressal mechanisms are to be provided within defined timelines.
• Remuneration & Penalties: ROs are eligible for brokerage and service charges, with penalties applicable for non-compliance or delays.
• Record Maintenance: Prescribed timelines for maintenance and preservation of records have been specified.

These directions are issued under the Government Securities Act, 2006, and remain applicable as per the revised operational framework.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13365

FPI Debt Investment & CDS Limits for FY 2026–27

The Reserve Bank of India has notified FPI limits for debt investments and Credit Default Swaps (CDS) for FY 2026–27.

• Investment Limits (General Route):
  G-Secs – 6% | SGSs – 2% | Corporate Bonds – 15% (of outstanding stock)
• Framework Updates:
  • G-Sec limit split 50:50 between ‘General’ and ‘Long-term’
  • SGS limit increase allocated to ‘General’ category
  • FAR continues for specified securities
  • VRR investments aligned with General Route limits from April 01, 2026
• Total Debt Limits:
  ₹15,51,646 crore (Apr–Sep 2026) | ₹16,32,640 crore (Oct 2026–Mar 2027)
• CDS Limit:
  5% of corporate bonds outstanding (₹3,30,464 crore)

Previous FY 2025–26 circular stands withdrawn. Directions issued under FEMA, 1999.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13366

Faster Cross-Border Inward Payments: RBI Guidelines

The Reserve Bank of India has introduced measures to improve the speed of cross-border inward payments.

• Immediate Intimation: Customers to be informed on receipt of payment messages or next business day if after hours.
• Frequent Reconciliation: Nostro accounts to be reconciled near real-time or at intervals not exceeding one hour.
• Timely Credit: Same-day credit during market hours; next business day after hours.
• STP Option: Straight Through Processing may be enabled for resident individuals.
• Digital Access: Banks to provide digital platforms for documentation and tracking.

Effective six months from the circular date, issued under the Payment and Settlement Systems Act, 2007.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13367

Lead Bank Assignment for Newly Formed Districts in Andhra Pradesh

Following the formation of two new districts—Polavaram and Markapuram—in Andhra Pradesh (as per Government notifications dated December 30, 2025), Lead Bank responsibilities have been assigned as below:

• Polavaram: Union Bank of India (District Working Code: 02X)
• Markapuram: Union Bank of India (District Working Code: 02Y)

There is no change in Lead Bank assignments for other districts in the state.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13368

RBI Updates Master Direction on Non-Resident Investment in Debt Instruments

The Reserve Bank of India has issued an amendment to the Master Direction – Non-resident Investment in Debt Instruments, 2025, under the Foreign Exchange Management (Debt Instruments) Regulations, 2019.

The update consolidates existing instructions relating to investments in debt instruments by Non-Resident Indians (NRIs) and the use of such instruments as collateral for exchange-traded derivative transactions on recognized stock exchanges in India.

The revised Master Direction has been issued accordingly, and AD Category-I banks are advised to inform their customers and constituents.

These directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13369