The Reserve Bank of India (RBI) has updated its Master Direction – Deposits and Accounts, originally issued on January 1, 2016, with the latest update dated September 2, 2026. The Master Direction consolidates instructions relating to foreign currency accounts maintained by residents, accounts maintained in India by non-residents, and Vostro accounts.
The following has been stated:
The Master Direction consolidates the regulatory framework under FEMA, 1999 governing the opening, holding and maintenance of foreign currency accounts by persons resident in India and deposits/accounts between residents and non-residents.
The latest amendment primarily consolidates provisions relating to Vostro accounts of non-resident banks that were earlier contained in the Master Direction – Risk Management and Inter-Bank Dealings. It also incorporates references to Special Rupee Vostro Accounts and Vostro Accounts of Non-Resident Exchange Houses under a newly inserted Part III.
The Master Direction is divided into three parts covering: (i) foreign currency accounts by residents, (ii) accounts in India by non-residents, and (iii) provisions relating to Vostro accounts. Directions may be further amended through A.P. (DIR Series) Circulars whenever changes are made to the underlying FEMA regulations or transaction procedures.
Please refer to the document attached below for more details.
[RBI/FED/2015-16/9]
