RBI Circulars Notifications And Updates from October 2025

RBI Circulars Notifications And Updates from October 2025

SRVA-Based Investment in Corporate Debt

Foreign entities holding Special Rupee Vostro Accounts (SRVA) in India can now deploy their INR balances, accumulated via international trade settlements, into corporate debt securities. Acceptable instruments include:

• Non-Convertible Debentures (NCDs)
• Bonds issued by Indian corporates
• Commercial Papers (CPs)

Compliance & Process

• FPI minimum maturity and issue-wise limits do not apply to these SRVA investments.
• Full adherence to existing limits and regulatory standards is mandatory for SRVA holders.
• Indian banks managing SRVAs must:

1. Facilitate new demat account openings for foreign investors
2. Report all transactions to SEBI-authorized depositories for continuous monitoring

INR Trade Settlement: Expanded Scope

Authorised Dealer (AD) Category–I banks may now permit foreign SRVA holders—including overseas banks and trading partners—to invest in extra corporate debt instruments using their rupee balances, following RBI-sanctioned limits and methods.

Integrated Ombudsman Scheme (RB-IOS, 2021)

The revised RB-IOS extends consumer grievance redressal coverage to:

• Banks: All commercial banks, RRBs, state/central co-operative banks, and urban co-operative banks with deposits over ₹50 crore.
• NBFCs: Deposit-taking NBFCs and systemically significant NBFCs with a customer interface and asset size above ₹100 crore.
• Others: Payment system operators and credit information companies.

Borrowing & Lending Amendments (2025)

Authorised Dealer Banks in India can now provide rupee-denominated loans for trade transactions to:

• Residents of Bhutan, Nepal, and Sri Lanka
• Banks operating within these countries

This move aims to strengthen cross-border commercial ties in the subcontinent using local currency.

Foreign Currency Accounts: Flexibility for Exporters

Indian exporters may open and maintain foreign currency accounts:

• With banks outside India, or
• In an International Financial Services Centre (IFSC)—which counts as “outside India” for regulatory purposes

Allowed functions:

• Receiving export proceeds or advance payments
• Settling import bills for goods/services to India
• Repatriating the currency back to India within the stipulated deadlines:

1. 1. IFSC account: within 3 months of outside receipt

   2. Other overseas banks: within 1 month of outside receipt

RBI Directions: Nomination Facility (2025)

Effective November 1, 2025, all banks—commercial, cooperative, RRBs, and SBI—must standardize and promote nomination services for:

• Savings, current, term, recurring, and other deposit accounts
• Safe deposit lockers
• Articles in safe custody
• Proprietorship accounts owned by individuals

Key Rights & Procedures

• Customers can refuse to nominate, but banks must educate about benefits (faster settlement, less legal hassle), documenting refusals and never denying account opening.
• If one of multiple nominees predeceases the account holder, the nomination for that person lapses; banks must follow RBI “Settlement of Claims for Deceased Customers” Directions.
• Banks must install systems for nomination, change/cancellation, and respond to applications within 3 working days—stating reasons for rejection, if any.
• Transparency: “Nomination Registered” and nominee name should appear on passbooks, statements, or deposit receipts.
• Awareness: Banks must communicate nomination rights and process prominently via account forms, passbook/cheque book footers, brochures, and campaigns.