On October 03, 2025, the Reserve Bank of India (RBI) released a draft of the Foreign Exchange Management (Establishment in India of a branch or office) Regulations, 2025, following the announcement in the Statement on Developmental and Regulatory Policies dated October 01, 2025. This relates to the Foreign Exchange Management (Establishment in India of a Branch Office or a Liaison Office or a Project Office or any other place of business) Regulations, 2016, vide Notification No. FEMA 22(R)/2016-RB. dated March 31, 2016.
The proposed amendments include:
* Relaxing eligibility criteria for establishing a business in India.
* Offering greater operational freedom through a shift to a principle-based framework.
* Simplifying the closure process for non-compliant and inactive branches/offices.
Comments/feedback on the draft regulations are invited through the 'Connect 2 Regulate' section on the RBI’s website or via email by October 24, 2025. The subject line should be "Feedback on draft regulations on Branch or office". For more information, visit www.rbi.org.in. For any additional queries email helpdoc@rbi.org.in. Contact Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001 Phone: 022 - 2266 0502.
Press Release: 2025-2026/1232
(Brij Raj), Chief General Manager
Key Entities Referenced
Foreign Exchange Management (Establishment in India of a branch or office) Regulations, 2025: Draft regulations concerning the establishment of foreign entities in India, specifically branch, liaison, or project offices.
Reserve Bank of India: The central bank of India, which issued the draft regulations and is seeking feedback.
Notification No. FEMA 22(R)/2016-RB.: The 2016 notification that the 2025 regulations will amend.
Statement on Developmental and Regulatory Policies: A statement by the Reserve Bank of India which included the announcement of the Foreign Exchange Management Regulations 2025.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
October 03, 2025
Draft Foreign Exchange Management (Establishment in India of a branch or
office) Regulations, 2025
As announced in the Statement on Developmental and Regulatory Policies dated
October 01, 2025, the Reserve Bank had issued the Foreign Exchange Management
(Establishment in India of a Branch Office or a Liaison Office or a Project Office or
any other place of business) Regulations, 2016, vide Notification No. FEMA
22(R)/2016-RB. dated March 31, 2016.
2. On a review, it has been decided to amend the extant regulations along the
following lines:
i) The eligibility criteria for establishment of a place of business in India, are
proposed to be relaxed.
ii) The draft proposals offer greater operational freedom by shifting from
prescriptive to a principle-based framework, which is expected to result in
greater operational freedom.
iii) The process for closure of non-compliant and inactive branch/office, are
proposed to be simplified.
3. Comments/feedback on the draft regulations may be submitted through the
‘Connect 2 Regulate’ Section available on the RBI’s website or via email by
October 24, 2025, with the subject line “Feedback on draft regulations on Branch or
office”.
(Brij Raj)
Press Release: 2025-2026/1232 Chief General Manager