RBI Simplifies FPI Investment Framework for Government Securities

The Reserve Bank of India has amended the regulatory framework governing investments by Foreign Portfolio Investors (FPIs) in Government Securities to facilitate greater ease of investment.

The revised framework removes the requirements relating to short-term investment limits, security-wise limits, and concentration limits for FPI investments in Government Securities under the General Route. It also consolidates the existing ‘general’ and ‘long-term’ investment limit categories into a single investment limit for Central Government Securities and State Government Securities.

Additionally, the amendments expand the scope of securities eligible under the Fully Accessible Route (FAR) by including new issuances of select Government Securities and Sovereign Green Bonds across specified tenors, along with certain existing Government Securities.

The revised directions came into effect immediately and are reflected in the updated Master Direction on Non-resident Investment in Debt Instruments.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13464

RBI Shifts Key FEMA Reporting Requirements to CIMS Portal

The Reserve Bank of India has mandated the submission of certain FEMA-related statements through the Centralized Information Management System (CIMS) portal.

Effective June 30, 2026, Authorised Dealer Category-I Banks are required to submit the monthly statement on Branch Offices (BOs), Liaison Offices (LOs), and Project Offices (POs) opened or closed during the month through CIMS under return code R343. Banks must also submit a ‘NIL’ report where no data is available.

Additionally, the monthly statement relating to remittances from Non-Resident Ordinary (NRO) Accounts has been migrated to the CIMS portal under return code R006.

The changes have been incorporated into the reporting framework under the Foreign Exchange Management Act (FEMA), with corresponding updates to the Master Direction on Reporting under FEMA, 1999.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13465

RBI Introduces Forex Swap Facility for FCNR(B) Deposits

The Reserve Bank of India has introduced a US Dollar-Rupee Forex Swap Facility for fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits mobilized by banks.

Under the facility, Authorised Dealer Category-I banks can swap eligible FCNR(B) deposits with the RBI in US Dollars for tenors ranging from three to five years, aligned with the tenure of the underlying deposits. The facility is available for fresh deposits, including renewals, mobilized between the date of the circular and September 30, 2026.

The swap transactions will be conducted at par using the FBIL Reference Rate, with banks permitted to avail the facility once per week. The scheme will remain operational until October 16, 2026 and includes specific requirements relating to documentation, audit trails, reporting, and deposit lock-in provisions.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13468

RBI Launches Forex Swap Facility for ECBs and Overseas Foreign Currency Borrowings

The Reserve Bank of India has introduced a US Dollar-Rupee Forex Swap Facility for eligible External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs).

Under the facility, Public Sector Undertakings (PSUs) can avail swaps for eligible ECBs with an average maturity of three years or more, while Authorised Dealer Category-I banks can access the facility for eligible OFCBs with a minimum maturity of three years. The swap facility is available in US Dollars for borrowings raised in any currency, with a maximum swap tenor of five years.

The swaps will be executed at a fixed rate of 1.5% per annum, compounded semi-annually, and will be administered by the RBI’s Financial Markets Operations Department. The facility is available for eligible ECB drawdowns and OFCB inflows received up to December 31, 2026, with the swap window remaining open until January 15, 2027.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13469

RBI Permits Exclusion of Eligible Swap Positions from NOP-INR Calculation

The Reserve Bank of India (RBI) has issued directions regarding the Net Open Position in Indian Rupee (NOP-INR) for Authorised Dealer Category-I (AD Cat-I) banks.

As per the circular, AD Cat-I banks may exclude swap positions arising from FCNR (B) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs) undertaken in accordance with the RBI’s swap facility circulars dated June 8, 2026.

Banks availing this exclusion must continue to comply with the provisions specified under A.P. (DIR Series) Circular No. 24 dated March 27, 2026.

These directions have been issued under Sections 10(4), 11(1), and 11(2) of the Foreign Exchange Management Act (FEMA), 1999, and are without prejudice to any additional approvals or permissions required under other applicable laws.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13470

RBI Exempts Eligible FCNR (B) Deposits from CRR and SLR

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026.

Under the amendment, fresh FCNR (B) deposits with a tenor of 3 to 5 years, mobilized by banks between June 8, 2026 and September 30, 2026 (including renewals), are exempt from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) maintenance requirements.

The CRR exemption will apply from the reporting fortnight beginning July 1, 2026 and remain available for the original deposit amounts as long as they continue to remain on the banks’ books. The Directions also include related reporting updates and are effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13471

RBI Grants CRR and SLR Exemption for Eligible FCNR (B) Deposits of Small Finance Banks

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026.

Under the amendment, fresh FCNR (B) deposits with a tenor of 3 to 5 years, mobilized by Small Finance Banks between June 8, 2026 and September 30, 2026 (including renewals), are exempt from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) maintenance requirements.

The CRR exemption will apply from the reporting fortnight beginning July 1, 2026 and continue for the original deposit amounts as long as they remain on the banks’ books. The amendment also includes related reporting updates and has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13472

RBI Provides CRR and SLR Exemption for Eligible FCNR (B) Deposits of Urban Co-operative Banks

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026.

Under the amendment, fresh FCNR (B) deposits with a tenor of 3 to 5 years, mobilized by Urban Co-operative Banks between June 8, 2026 and September 30, 2026 (including renewals), are exempt from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) maintenance requirements.

The CRR exemption will apply from the reporting fortnight beginning July 1, 2026 and continue for the original deposit amounts as long as they remain on the banks’ books. The Directions also introduce related regulatory updates and are effective immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13473

RBI Exempts Fresh FCNR(B) Deposits from CRR and SLR Requirements for Rural Co-operative Banks

The Reserve Bank of India has amended the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) framework for Rural Co-operative Banks in connection with the introduction of the US Dollar-Rupee swap facility for fresh FCNR(B) deposits.

Under the amendment, fresh FCNR(B) deposits mobilised by Rural Co-operative Banks with a minimum tenor of three years and maximum tenor of five years, including renewals upon maturity, will be exempt from CRR and SLR maintenance requirements.

The exemption applies to eligible deposits mobilised from the date of the amendment until September 30, 2026, and will continue for the original deposit amount if the deposits remain with the bank.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13474

RBI Provides CRR and SLR Exemption on Fresh FCNR(B) Deposits for Regional Rural Banks

The Reserve Bank of India has amended the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) framework applicable to Regional Rural Banks in connection with the introduction of the US Dollar-Rupee swap facility for fresh FCNR(B) deposits.

Under the amendment, fresh FCNR(B) deposits mobilised by Regional Rural Banks with a minimum tenor of three years and maximum tenor of five years, including renewals upon maturity, will be exempt from CRR and SLR maintenance requirements.

The exemption is applicable to eligible deposits mobilised from the date of the amendment until September 30, 2026. The CRR exemption will continue for the original deposit amount as long as such deposits remain in the bank’s books.

The amendment has come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13475

RBI Consolidates Guidelines on Withdrawal of ₹2000 Denomination Banknotes

The Reserve Bank of India introduced the ₹2000 denomination banknote in November 2016. As part of the Clean Note Policy, RBI announced the withdrawal of ₹2000 denomination banknotes from circulation on May 19, 2023.

The facility for exchange or deposit of ₹2000 banknotes through bank branches was available until October 7, 2023. From October 9, 2023, the exchange/deposit facility continues to be available for individuals and entities through RBI Issue Offices.

The ₹2000 denomination banknotes continue to remain legal tender. RBI has consolidated the earlier instructions related to the withdrawal process for public reference.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13476

RBI Consolidates Guidelines on Withdrawal of Pre-2005 Series Banknotes

The Reserve Bank of India follows a periodic process of withdrawing older series of banknotes to introduce notes with enhanced security features in line with global practices.

RBI had decided on January 23, 2014, to withdraw all banknotes issued before 2005 from circulation. Banks were advised to support the public during the withdrawal process and ensure a smooth transition.

From July 1, 2016, the exchange facility for pre-2005 series banknotes is available only through RBI Issue Offices. Banks are required to ensure that such notes are not re-issued through ATMs or over-the-counter transactions and must send them to RBI for disposal.

Pre-2005 series banknotes continue to remain legal tender. The circular consolidates earlier instructions issued on the withdrawal of these banknotes.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13477

RBI Updates Framework for Bank Lending to REITs and InvITs

The Reserve Bank of India (RBI) has introduced amendments allowing commercial banks to provide credit facilities to SEBI-registered Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

Key provisions include:

• Banks can finance eligible REITs and InvITs subject to prescribed prudential norms and risk controls.
• Banks must have a Board-approved policy covering appraisal, exposure limits, monitoring, and security requirements.
• Lending shall be backed by appropriate security and supported by adequate cash flow assessment.
• Banks must monitor leverage, repayment capacity, and overall exposure risks.
• Existing facilities may continue till maturity, while renewals or enhancements must comply with the revised framework.

The amendments will be effective from October 1, 2026.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13478

RBI Strengthens Exposure Limits for Real Estate Sector Risk Management

The Reserve Bank of India (RBI) has issued amendments to the Commercial Banks – Concentration Risk Management Directions, 2025 to enhance risk management practices for banks’ exposure to the real estate sector.

Under the revised framework:

• Banks are required to set internal exposure limits for the overall real estate sector based on their business model and risk appetite.
• Banks must also define sub-limits for different categories of real estate exposures.
• Exposure to Real Estate Investment Trusts (REITs) will be subject to a prudential ceiling of 10% of the bank’s eligible capital base.

The amendment replaces the earlier provisions under the exposure norms chapter and aligns concentration risk requirements with the updated framework for bank financing to REITs.

The revised directions will come into effect from October 1, 2026, or earlier if adopted by the bank.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13479

RBI Revises Capital Adequacy Norms for Bank Exposures to REITs

The Reserve Bank of India (RBI) has issued amendments to the Commercial Banks – Prudential Norms on Capital Adequacy Directions, 2025, introducing revised risk weight requirements for bank exposures to Real Estate Investment Trusts (REITs).

Under the revised framework:

• Bank exposures to REITs will be treated as Commercial Real Estate (CRE) exposures and will attract a 100% risk weight.
• If the exposure qualifies as a capital market exposure, the applicable risk weight will be 125%.
• Lending to REITs through overseas branches of Indian banks will attract a higher 150% risk weight.

The amendment has been issued in alignment with changes in the credit facilities framework and will come into effect from October 1, 2026, or earlier if adopted by banks as per the related RBI directions.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13480

RBI Allows Small Finance Banks to Lend to InvITs Under Revised Norms

The Reserve Bank of India (RBI) has permitted Small Finance Banks (SFBs) to extend loans to SEBI-registered Infrastructure Investment Trusts (InvITs) under the revised credit facility framework.

Key provisions include:

• Lending is allowed only to listed InvITs meeting prescribed eligibility criteria.
• Banks must follow a Board-approved policy covering appraisal, exposure limits, monitoring, and risk controls.
• InvIT financing must be secured through appropriate asset charges, cash flow assignments, and lender protections.
• Funds cannot be used for acquiring equity of other entities or financing stressed entities.
• Aggregate bank exposure to an InvIT and related entities is capped at 49% of InvIT asset value.
• Existing non-compliant InvIT loans may continue until maturity but cannot be renewed or enhanced without meeting revised norms.

The amendments will be effective from October 1, 2026, or earlier if adopted by banks.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13481

RBI Revises InvIT Lending Framework for AIFIs

The Reserve Bank of India (RBI) has amended the AIFIs – Credit Facilities Directions, 2025, permitting All India Financial Institutions (AIFIs) to provide finance to SEBI-registered Infrastructure Investment Trusts (InvITs) under a revised regulatory framework.

Key updates:

• AIFIs may lend to eligible listed InvITs investing in completed and revenue-generating infrastructure projects.
• Lending requires a Board-approved policy covering credit assessment, exposure limits, valuation, underwriting, and monitoring.
• Finance must be backed by adequate security, including asset charges, cash flow assignment, and enforceable lender rights.
• Funds cannot be used for financing stressed entities or acquiring equity of other entities.
• Borrowing InvITs must comply with applicable leverage limits and maintain sufficient cash flows for debt servicing.
• Existing InvIT loans that do not meet the revised requirements may continue until maturity; however, renewal or enhancement will require compliance with the amended norms.

The amendments will come into effect from October 1, 2026, or earlier if adopted by AIFIs.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13482