The Reserve Bank of India (RBI) on September 08, 2026, issued updates to the Master Direction – Borrowing and Lending transactions in Indian Rupee between Persons Resident in India and Non-Resident Indians/ Persons of Indian Origin.
The following has been stated: -
•The RBI Master Direction governs borrowing and lending of INR between persons resident in India and NRIs/PIOs under FEMA and the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000.
•It sets out rules for INR loans by authorised dealers, housing loans to NRIs/PIOs, ESOP-related loans, corporate employee loans and loans by resident individuals to NRI relatives.
•It also prescribes conditions on loan utilisation, repayment, interest, maturity, and permitted accounts.
•The Direction covers change in residential status of borrowers/lenders and temporary overdrafts by authorised dealers to their overseas branches/correspondents/head offices.
•The Master Direction incorporates amendments including FEMA Notification No. 3(R)(5)/2026-RB dated February 16, 2026, with certain earlier provisions deleted through subsequent circulars.
The detailed notification is given in the document below.
[Notification No.: RBI/FED/2015-16/2 FED Master Direction No. 6/2015-16]
