April 2025 FEMA & RBI Updates: Key Regulatory Changes You Should Know
Staying compliant with India’s evolving foreign exchange and banking regulations is essential for businesses, investors, and financial institutions. The April 2025 edition of CNK & Associates LLP’s Quarterly Insights highlights significant updates from the Reserve Bank of India (RBI) and under the Foreign Exchange Management Act (FEMA), 1999, offering a snapshot of changes impacting foreign investments, reporting norms, and regulatory compliance.
Key highlights include:
- New RBI Master Directions simplifying investment routes for FPIs, NRIs, and OCIs in Indian debt instruments, including the Fully Accessible Route (FAR) and Sovereign Green Bonds.
- Expanded payment modes for inbound investments and clearer rules on foreign currency accounts for exporters.
- Regulatory clarifications on financial disclosures, lease accounting, pension liabilities in RRBs, and treatment of government-guaranteed Security Receipts (SRs).
- Monetary policy update lowering the repo rate to 6%, with downward revisions in the bank rate and penal interest rates.
These updates signal India’s push toward greater transparency, ease of doing business, and improved investor access—particularly relevant for stakeholders in banking, NBFCs, export/import businesses, and foreign investors.
