Master Direction on Non-Resident Investment in Debt Instruments – Amendment
Summary
RBI issued A.P. (DIR Series) Circular No. 06 amending the Master Direction on Non-Resident Investment in Debt Instruments, 2025. The amendment consolidates directions relating to investments in debt instruments by Non-Resident Indians and use of such debt instruments as collateral for exchange traded derivative contracts. AD Category-I banks are required to notify constituents of the updated Master Direction.
What changed
The RBI has issued an amendment (A.P. (DIR Series) Circular No. 06) to the Master Direction on Non-Resident Investment in Debt Instruments, 2025. This amendment consolidates various directions issued over the years relating to investments in debt instruments by Non-Resident Indians and the offering of debt instruments acquired under FEMA 396 as collateral to recognized Stock Exchanges for exchange traded derivative transactions. The updated Master Direction supersedes previous fragmented instructions.
Affected parties including AD Category-I banks and non-resident investors should review the consolidated Master Direction to ensure compliance with the latest requirements. Banks must communicate these changes to their constituents and customers concerned.
What to do next
- AD Category-I banks shall bring the contents of this circular to the notice of their constituents and customers concerned
- Refer to the updated Master Direction for consolidated NRI debt investment requirements
Archived snapshot
Apr 11, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Notifications
| () | |
| Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 – amendment | |
| | RBI/2026-27/10
A.P. (DIR Series) Circular No. 06
April 10, 2026
To
All Authorised Dealer Category-I banks
Madam / Sir,
Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 – amendment
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified, vide Notification No. FEMA. 396/2019-RB dated October 17, 2019 (hereinafter “FEMA 396”) and the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 07, 2025 (hereinafter “Master Direction”), as amended from time to time.
Over the years, the Reserve Bank has issued directions relating to, inter alia, investments in debt instruments by Non-Resident Indians (NRIs) and offering of debt instruments acquired in terms of FEMA 396 as collateral to recognized Stock Exchanges in India for transactions in exchange traded derivative contracts. These instructions have now been consolidated in the aforesaid Master Direction.
The updated Master Direction is enclosed.
AD Category–I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager | | RBI/2026-27/10
A.P. (DIR Series) Circular No. 06
April 10, 2026
To
All Authorised Dealer Category-I banks
Madam / Sir,
Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 – amendment
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified, vide Notification No. FEMA. 396/2019-RB dated October 17, 2019 (hereinafter “FEMA 396”) and the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 07, 2025 (hereinafter “Master Direction”), as amended from time to time.
Over the years, the Reserve Bank has issued directions relating to, inter alia, investments in debt instruments by Non-Resident Indians (NRIs) and offering of debt instruments acquired in terms of FEMA 396 as collateral to recognized Stock Exchanges in India for transactions in exchange traded derivative contracts. These instructions have now been consolidated in the aforesaid Master Direction.
The updated Master Direction is enclosed.
AD Category–I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager |
| RBI/2026-27/10
A.P. (DIR Series) Circular No. 06
April 10, 2026
To
All Authorised Dealer Category-I banks
Madam / Sir,
Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 – amendment
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified, vide Notification No. FEMA. 396/2019-RB dated October 17, 2019 (hereinafter “FEMA 396”) and the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 07, 2025 (hereinafter “Master Direction”), as amended from time to time.
Over the years, the Reserve Bank has issued directions relating to, inter alia, investments in debt instruments by Non-Resident Indians (NRIs) and offering of debt instruments acquired in terms of FEMA 396 as collateral to recognized Stock Exchanges in India for transactions in exchange traded derivative contracts. These instructions have now been consolidated in the aforesaid Master Direction.
The updated Master Direction is enclosed.
AD Category–I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager | |
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