As announced in the Statement on Developmental and Regulatory Policies dated October 01, 2025, the Reserve Bank had issued the Foreign Exchange Management (Establishment in India of a Branch Office or a Liaison Office or a Project Office or any other place of business) Regulations, 2016, vide Notification No. FEMA 22(R)/2016-RB. dated March 31, 2016.

2. On a review, it has been decided to amend the extant regulations along the following lines:

1. The eligibility criteria for establishment of a place of business in India, are proposed to be relaxed.

2. The draft proposals offer greater operational freedom by shifting from prescriptive to a principle-based framework, which is expected to result in   greater operational freedom.

3. The process for closure of non-compliant and inactive branch/office, are proposed to be simplified.

3. Comments/feedback on the draft regulations may be submitted through the link given below. Alternatively, it may also be forwarded via email to reviewoffema22rfeedback@rbi.org.in by October 24, 2025, with the subject line “Feedback on draft regulations on Branch or office”.