RBI Delegates Powers to Compound Certain FEMA, 1999 Contraventions to Regional Offices

Key facts

• The Reserve Bank of India (RBI), vide A.P. (DIR Series) Circular No. 28/2026-27 dated October 23, 2026, delegated powers to compound certain contraventions under FEMA, 1999 to select Regional Offices.
• Compounding applications for Overseas Investment contraventions will be handled by Regional Offices at Ahmedabad, Bengaluru, Mumbai, Kolkata, New Delhi, Hyderabad and Chennai based on the prefix of the Unique Identification Number (UIN) assigned to the foreign entity.
• Compounding applications for Borrowing and Lending, and Guarantees contraventions must be submitted to the Regional Office having jurisdiction over the registered office or domicile of the Indian entity.
• Applications involving no allotted UIN or contraventions across multiple categories must be submitted to the Cell for Effective implementation of FEMA (CEFA), Foreign Exchange Department, Central Office, Mumbai.
• The circular was issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, and updates the Master Directions on Compounding dated April 22, 2025.
• The circular was signed by Dr. Aditya Gaiha, Chief General Manager in Charge.