RBI Withdraws Obsolete FEMA Circulars to Simplify Foreign Exchange Regulatory Framework



Quick Summary
The Reserve Bank of India (RBI) has withdrawn a number of outdated circulars related to the Foreign Exchange Management Act (FEMA). This action is part of the RBI's ongoing initiative to streamline regulations and remove unnecessary compliance burdens for businesses. The withdrawn circulars were identified as no longer in effect due to newer regulations, overlap, or being superseded.

The Reserve Bank of India (RBI) has withdrawn a number of outdated circulars issued under the Foreign Exchange Management Act, 1999 (FEMA). The move is part of the central bank's ongoing efforts to simplify regulations and eliminate redundant compliance requirements.

Through A.P. (DIR Series) Circular No. 18 dated June 24, 2026, the RBI announced that it has completed a comprehensive review of FEMA-related circulars issued since June 1, 2000. Following the review, several circulars identified as no longer operative due to regulatory amendments, overlap with newer guidelines, redundancy, or supersession have been formally withdrawn.

RBI Simplifies Forex Rules by Withdrawing Obsolete FEMA Circulars

Official copy of the notification is as follows

Review of Circulars issued under Foreign Exchange Management Act, 1999 (FEMA)

In pursuance of the Reserve Bank’s ongoing initiative to rationalise the regulatory framework under the Foreign Exchange Management Act, 1999 (FEMA), a review of circulars issued since June 01, 2000, has been undertaken. The circulars, as listed at  Annex, that have ceased to be operative owing to subsequent regulatory amendments, redundancy, overlap or supersession by newer directives, are being withdrawn.

2. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.

3. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

FAQ :

The RBI has withdrawn a number of outdated circulars issued under the Foreign Exchange Management Act, 1999 (FEMA).

The withdrawal is part of the RBI's ongoing efforts to simplify regulations and eliminate redundant compliance requirements.

The RBI announced the withdrawal through A.P. (DIR Series) Circular No. 18 dated June 24, 2026.

The RBI conducted a comprehensive review of FEMA-related circulars issued since June 1, 2000.

Circulars identified as no longer operative due to regulatory amendments, overlap with newer guidelines, redundancy, or supersession have been withdrawn.

The directions were issued under Section 10(4) and Section 11(1) of the FEMA, 1999.




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