The Reserve Bank of India (RBI) issued the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2026 on June 15 2026. This notification amends the principal regulations governing the modes of payment and reporting requirements for non-debt instruments under FEMA.
What Changed
While the full text of the amendment is available on the RBI website, the heading indicates changes to both the permitted modes of payment and the reporting framework for non-debt instruments. Non-debt instruments typically include equity shares, convertible debentures, and other instruments not classified as debt. The amendment likely revises the list of acceptable payment channels and modifies the reporting formats or timelines to the RBI.
Who Is Affected
The amendment applies to all entities engaged in foreign exchange transactions involving non-debt instruments. This includes foreign investors, Indian companies receiving foreign investment, authorized dealers, and compliance teams responsible for FEMA reporting. The specific obligations depend on the nature and value of the instruments involved.
Compliance Action
Operators should obtain the full notification from the RBI website (Notification ID 13484) and compare the amended provisions against their current practices. Key areas to review: the payment modes now allowed for subscription or purchase of non-debt instruments, and any changes to the form, frequency, or deadline for reporting such transactions. No penalty provisions are stated in the source, but non-compliance with FEMA regulations can attract monetary penalties and enforcement actions.
Review the amendment text and update internal procedures to ensure all non-debt instrument transactions use only the approved payment modes and are reported within the required timeframes.
Source: Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2026
Domain: rbi.org.in
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