The Reserve Bank of India has delegated FEMA compounding for overseas investment, overseas borrowing and lending, and guarantee cases to select Regional Offices, under circular No. 28/2026-27 listed on 23 October 2026. Our latest USD to INR reading is Rs 94.94; the circular does not set or change any exchange rate.
Until now, applications on these transactions were received at the Central Office. The circular names which office takes each application, and the answer depends on the foreign entity's UIN or on the Indian applicant's registered office.
Latest Rs 94.94 (30 Oct 2026)High Rs 96.82 (9 Oct 2026)Low Rs 93.55 (26 Aug 2026)
What changed
The circular is A.P. (DIR Series) Circular No. 28/2026-27, addressed to Authorised Dealer Category-I banks and other Authorised Persons. It builds on the Master Directions on Compounding of Contraventions under FEMA, 1999, dated 22 April 2025, which it says will be updated to reflect the change.
| Item | Before | After | Effective date |
|---|---|---|---|
| Overseas investment contraventions (FEMA 19/RB-2000, FEMA 120/RB-2004, FEMA 400/2022-RB and the 2022 Rules) | Central Office | Regional Office by the UIN of the foreign entity. Where no UIN was allotted, the Cell for Effective implementation of FEMA (CEFA), Central Office, Mumbai | Not stated in the circular |
| Overseas borrowing and lending, and guarantees (FEMA 3/2000-RB, 3(R)/RB-2018, 8/RB-2000, 8(R)/RB-2026 and others) | Central Office | Regional Office with jurisdiction over the registered office or place of domicile of the Indian company or entity | Not stated in the circular |
| Contraventions under several categories with different delegations | Not described in the circular | CEFA, Central Office, Mumbai | Not stated in the circular |
Latest stored rates against 1 US dollar, from our FX records. Source: TrackLivePrice stored FX records.
| Currency | 1 unit in rupees | Rs 1 buys |
|---|
Mid-market reference rates, 31 Oct 2026 | Source: open.er-api.com. Banks and money changers add a margin.
Who it affects
The circular is addressed to banks, so it reaches people through them. It affects any Indian company or individual with a compounding case in one of the three groups above. The circular asks the banks to bring its guidelines to the notice of their constituents.
Try it: USD to INR Converter lets you enter an amount in US dollars and shows the rupee value at our latest stored rate, with a 30 day chart.
What to do
- Identify the category of the contravention: overseas investment, overseas borrowing or lending, guarantee, or more than one of these.
- For an overseas investment case, note the UIN allotted to the foreign entity, joint venture or wholly owned subsidiary. Route the application using that UIN.
- If no UIN was allotted, send the application to CEFA at the Central Office, 11th floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai 400001.
- For a borrowing, lending or guarantee case, send the application to the Regional Office that covers the Indian company's registered office or place of domicile. The jurisdiction list is in Part C of Annexure I to the Master Directions dated 22 April 2025.
- If lending or guarantee relates to a foreign entity in which the applicant made an overseas investment, follow the overseas investment routing above, as the circular notes.
- For cases with several categories, submit to CEFA at the Central Office.
What has not changed
The circular does not change any exchange rate, and the USD to INR converter and currency converter work as before. It does not mention the Liberalised Remittance Scheme, remittance limits or forex card rules, so it does not change them. It also says it is issued without prejudice to any permission or approval required under another law.
Common mistakes
- Sending an overseas investment case to the Regional Office of the Indian applicant, when the UIN rule decides the office.
- Assuming the circular sets a new exchange rate. It does not.
- Looking for a separate effective date. The circular does not state one, so check the RBI notifications page and the updated Master Directions.
