Navigating FEMA and RBI Updates: Key Regulatory Changes Every Business Should Know – October 2024 Edition
Staying on top of India’s evolving regulatory framework is essential for businesses, investors, and financial professionals. The October 2024 edition of CNK & Associates LLP’s Quarterly Insights offers a detailed overview of recent amendments to the Foreign Exchange Management Act (FEMA) and key directives from the Reserve Bank of India (RBI). These updates are critical for ensuring compliance in cross-border investments, foreign exchange operations, and financial governance.
What’s New?
This quarter’s highlights include:
- Amendments to FEMA (NDI) Rules, 2019, streamlining government approvals for foreign equity transactions and introducing clarity on share swap deals.
- Revised Foreign Exchange (Compounding Proceedings) Rules, 2024, emphasizing digital processes and clearer jurisdiction for RBI officials.
- Updated RBI fraud risk management directives for banks, NBFCs, and cooperative institutions, strengthening early detection and reporting frameworks.
- Regulatory treatment of reserves, such as Dividend Equalisation Funds and Bad and Doubtful Debt Reserves, bringing clarity for cooperative banks.
These updates reflect India’s continued push toward transparency, digital governance, and ease of doing business for both domestic and international stakeholders.
