The Reserve Bank had undertaken a review of the extant guidelines on the prudential norms on declaration of dividend and remittance of profits by foreign banks operating in branch mode in India. Accordingly, a draft of the revised framework was issued for public comments on January 2, 2024. However, based on the stakeholder feedback and consultations, a new methodology for computing the maximum eligible dividend payout is being issued for public comments.

The comments on the draft Directions are invited till February 5, 2026. The comments / feedback may be submitted through the link under the ‘Connect2Regulate’ Section available on the Reserve Bank’s website. Alternatively, the comments may be forwarded to

The Chief General Manager, Balance Sheet Group
Department of Regulation, Central Office
Reserve Bank of India,
13th Floor, Central Office Building
Shahid Bhagat Singh Marg, Fort,
Mumbai – 400001
or
by e-mail (accdor@rbi.org.in)

Lending to counterparties who are related or connected to the lenders either through ownership stake in the lending entity or through their ability to control and influence the lending decisions entail conflict of interest or moral hazard issues for the lenders. The draft Directions being issued provide a harmonised, principle-based framework to be adopted by REs for managing such risks, suitably rationalising the existing provisions.

Additional comments or any attachments may also be submitted by email at feedbackcrg@rbi.org.in.

Last date for submission of comments is October 31, 2025.

As announced in the Statement on Developmental and Regulatory Policies dated October 01, 2025, it has been decided to rationalize regulations pertaining to External Commercial Borrowing (ECB) included in the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 issued under FEMA, 1999. Salient features of proposed regulations are as under:

1. The borrowing limits are proposed to be linked to a borrower’s financial strength and ECB are proposed to be raised at market determined interest rates.

2. The end-use restrictions and Minimum Average Maturity requirements are proposed to be simplified.  

3. The borrower and lender base eligible for ECB transactions is being expanded to enhance opportunities of credit flow for productive commercial use.

4. Reporting requirements are being simplified to ease compliance obligations.

The draft amendment to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 pertaining to the ECB framework is available on the RBI website for public response.

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

The Reserve Bank of India today placed on its website a draft circular on Guidelines to facilitate faster cross-border inward payments. Comments / feedback on the draft Circular are invited from banks by November 19, 2025. Additional comments or any attachments may also be submitted by email with subject line “Feedback on Draft circular on Guidelines to facilitate faster cross-border inward payments”.

Background and objective

2. The Reserve Bank’s Payments Vision 2025 aims to bring efficiency in the cross-border payments aligning with the G20 roadmap for cross-border payments that has set targets for achieving cheaper, faster, transparent, and accessible cross-border payments. One of the challenges with speed of cross-border payments is the delay between receipt of the payment at the beneficiary bank and credit to the beneficiary account. This draft circular aims to address some of the frictions for facilitating timely intimation of payment information and credit to the beneficiary’s account.

BSBD Account is a savings bank account which was introduced with the objective of promoting financial inclusion. The extant instructions on BSBD account require banks to provide certain minimum facilities free of charge, without the requirement of minimum balance, to the holders of such accounts. The ongoing digitalization in the banking sector necessitates a BSBD account that is in sync with the customer’s changing requirements.

With a view to provide affordable banking facilities to the public and drive enhanced usage of BSBD accounts to deepen financial inclusion, the draft circular on Reserve Bank of (Basic Savings Bank Deposit Account) Directions, 2025 has been issued for public comments.

Additional comments or any attachments may also be submitted by email at cgmicdor@rbi.org.in.

Last date for submission of comments is October 24, 2025.

The Guidelines on Enhancing Credit Supply for Large Borrowers through Market Mechanism were introduced in August 2016 with an objective to address the concentration risk arising from the aggregate credit exposure of the banking system to a single large corporate and encourage such large corporates to diversify their funding requirements.

Upon a review, considering inter alia the changes evident in the profile of banks funding to the corporate sector since the introduction of the guidelines ibid, it is proposed to withdraw the guidelines. Accordingly, the draft circular to repeal the guidelines has been issued for public comments.

Additional comments or any attachments may also be submitted by email at cgmicdor@rbi.org.in.

Last date for submission of comments is October 24, 2025.