RBI Withdraws Obsolete FEMA Circulars

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  • Last Updated on 27 June, 2026

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RBI FEMA Circulars Review

RBI/2026-27/175 A.P. (DIR Series) Circular No. 18; Dated: 24.06.2026

The Reserve Bank of India (RBI) has undertaken a review of circulars issued under the Foreign Exchange Management Act, 1999 (FEMA) as part of its ongoing initiative to rationalise and streamline the regulatory framework.

The review covers circulars issued since June 01, 2000, to identify those that are no longer operative or relevant due to subsequent regulatory changes.

1. Review of FEMA Circulars Since June 2000

RBI has reviewed circulars issued under FEMA from June 01, 2000 onwards.

The exercise forms part of the Reserve Bank’s broader effort to simplify the foreign exchange regulatory framework and ensure that only relevant and operative instructions remain in force.

2. Withdrawal of Inoperative Circulars

Circulars that have ceased to be operative are being withdrawn.

This includes circulars that are no longer relevant due to:

  • Subsequent regulatory amendments;
  • Redundancy;
  • Overlap with other directions or circulars; and
  • Supersession by newer regulatory instructions.

3. Rationalisation of Regulatory Framework

The withdrawal of outdated circulars is intended to reduce duplication and improve clarity for regulated entities, Authorised Persons, and other stakeholders engaged in FEMA-related compliance.

It will help users refer to the current regulatory framework without confusion arising from obsolete or overlapping instructions.

4. Objective of the Review

The review aims to:

  • Rationalise FEMA-related circulars;
  • Remove outdated and redundant instructions;
  • Avoid overlap between older and newer directions;
  • Simplify regulatory compliance; and
  • Improve ease of reference for stakeholders.

5. Expected Impact

The withdrawal of inoperative circulars is expected to make the FEMA regulatory framework more streamlined and user-friendly. It will also help Authorised Persons and regulated entities identify applicable instructions more efficiently and reduce compliance ambiguity.

6. Key Takeaway

RBI has reviewed circulars issued under FEMA since June 01, 2000, as part of its regulatory rationalisation initiative. Circulars that have become inoperative due to subsequent amendments, redundancy, overlap or supersession by newer directives are being withdrawn to simplify and streamline the FEMA regulatory framework.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied