RBI Shakes Up Forex Reporting: Draft Rules Target AD Category-I Banks

The Reserve Bank of India (RBI) has published draft directions outlining new reporting instructions for Authorised Dealer Category-I banks, which handle foreign exchange transactions. The move is part of RBI’s ongoing efforts to modernize regulatory frameworks and ensure greater transparency in India’s financial system.

The draft guidelines specify reporting formats, timelines, and compliance requirements for AD banks, covering areas such as cross-border remittances, trade-related payments, and capital account transactions. By standardizing reporting practices, RBI aims to improve data accuracy, strengthen monitoring, and align India’s financial reporting standards with global best practices.

Stakeholders, including banks and industry participants, have been invited to submit comments and suggestions before the final directions are issued.

Key Highlights

• Draft Release Date: February 16, 2026.
• Scope: Reporting instructions for AD Category-I banks handling foreign exchange.
• Objective: Enhance compliance, transparency, and monitoring of forex transactions.
• Stakeholder Input: RBI invites feedback before final implementation.
• Strategic Impact: Aligns India’s financial reporting with international standards.

Sources: Reserve Bank of India Press Release, Public Technologies