Reserve Bank of India originally issued this Master Direction on January 4, 2018, addressed to all Authorised Dealer Category-I banks and Authorised banks. The Master Direction consolidates instructions on Foreign Investment in India issued under FEMA and the NDI Rules. The most recent update is dated June 15, 2026. Two new underlying notifications have been added to Annex 12 (List of Notifications/Circulars consolidated in this Master Direction):

Two entries have been added to Annex 12 of the Master Direction, being the list of notifications and circulars forming the basis of the Master Direction:

Entry 13: Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2026 — dated May 2, 2026

Entry 14: Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2026 — dated June 12, 2026

The prior update to this Master Direction was dated January 20, 2025, which incorporated changes arising from Notification No. FEMA 395(3)/2025-RB dated January 15, 2025. That update modified references across multiple provisions replacing “NRE/FCNR(B)” and “NRE/FCNR(B)/Escrow” with “any repatriable foreign currency or Rupee account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016.” One insertion was made under Annex 9, para 2.2, adding the sentence: “An FPI may invest in the IDRs out of funds held in a foreign currency account or an SNRR account.” Deletion was made under Annex 2, para 2.2 and Annex 6, para 2.2, removing the phrase “and SNRR account.” One modification was made under Annex 9, para 3.1, replacing reference to “Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004” with “Foreign Exchange Management (Overseas Investment) Rules, 2022.”