Select RBI Circulars Oct 2025

BLOG NO 26/2025 DATED 2ND NOVEMBER 2025

In this document we have covered the select RBI notifications and directives for the month of Oct 2025 and produced a gist of it. For detailed and full study, link is provided that will take us to the RBI communication.

NOTIFICATIONS:

1. RBI/2025-26/88 A.P. (DIR Series) Circular No. 11 dated 01.10.2025

Subject: Merchanting Trade Transactions (MTT) – Review of time period for outlay of foreign exchange

https://website.rbi.org.in/documents/d/rbi/merchantingtradetransactions

Gist:

In a MTT the time period for outlay of forex is increased from 4 months to 6 months.

Author’s note:

Merchanting Trade Transactions (MTT) is an international trade where goods bought do not enter the trader’s country. For example, an Indian trader buys goods from US and sells that to Malaysia when goods are directly shipped from US to Malaysia without coming to India.

• RBI/2025-26/89 A.P. (DIR Series) Circular No.12 dated 01.10.2025

Subject: Export Data Processing and Monitoring System (EDPMS) & Import Data Processing and Monitoring System (IDPMS) – reconciliation of export /import entries – Review of Guidelines

https://website.rbi.org.in/documents/d/rbi/exportdataprocessingmonitoringsystem

Gist:

To facilitate timely closure of entries in EDPMS & IDPMS, and to reduce compliance burden on small exporters and importers, the following directions are being issued.

 AD banks shall adopt the following procedure while closing entries (including outstanding entries) in EDPMS & IDPMS of value equivalent to ₹10 lakh per entry/bill or less:

a. Such entries shall be reconciled and closed based on a declaration provided by the concerned exporter that the amount has been realised or by the importer that the amount has been paid.

b. Any reduction in declared value or invoice value of the shipping bills/bills of entry shall also be accepted, based on the declaration by the concerned exporter or importer.

c. The declarations referred above may also be received on a quarterly basis from the exporters and importers in a consolidated manner (by combining several bills in one declaration) for bulk reconciliation and closing of EDPMS/IDPMS entries.

AD banks shall not levy any penal charges (penalty) for delays in adherence to any regulatory guidelines.

• RBI/2025-26/90 A.P. (DIR Series) Circular No. 13 dated 03.10.2025

Subject: Investment in Corporate Debt Securities by Persons Resident Outside India through Special Rupee Vostro account

https://website.rbi.org.in/documents/d/rbi/rbicircular90_202526

Gist:

Persons resident outside India that maintain a Special Rupee Vostro Account (SRVA) for international trade settlement in Indian Rupees in terms of A.P. (DIR Series) Circular No. 10 dated July 11, 2022 were permitted to invest their rupee surplus balance in the aforesaid account in Central Government Securities (including Treasury Bills). Now they can also invest in Non-Convertible Corporate Debenture/Bonds and Commercial Papers issued by Indian Companies.

Author’s Note:

SRVA – Special Rupee Vostro Account is an account introduced by RBI to facilitate international trade in Indian Rupee.

• Ref. CO.CEPD.PRS.No.S684/13-55-001/2025-2026 dated 07.10.2025

Subject: Reserve Bank – Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021)

https://website.rbi.org.in/documents/d/rbi/notificationinclusionofrcbsenglish

Gist:

State Co-operative Banks and Central Co-operative Banks will also be treated as regulated entity under the subject scheme.

With this inclusion, the Scheme covers the following regulated entities:

1. all Commercial Banks, Regional Rural Banks, State Co-operative Banks, Central Co-operative Banks, Scheduled Primary (Urban) Co-operative Banks, and Non-Scheduled Primary (Urban) Co-operative Banks with deposits size of ₹50 crore and above as on the date of the audited balance sheet of the previous financial year;

• all Non-Banking Financial Companies (excluding Housing Finance Companies) which (a) are authorised to accept deposits; or (b) have customer interface, with an assets size of ₹100 crore and above as on the date of the audited balance sheet of the previous financial year;

• all System Participants as defined under the Scheme

d) Credit Information Companies.

• RBI/2025-26/95 DOR.MCS.REC.59/01.01.003/2025-26 dated 28.10.1025

Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025

https://website.rbi.org.in/documents/d/rbi/nominationfacilitydirections2025

Gist:

Effective date:01.11.202

• A bank shall offer nomination facility in deposit accounts in accordance with the provisions of sections 45ZA, 45ZB and 45ZG of the Act.
• A bank shall be guided by the provisions of sections 45ZC to 45ZG of the Act (read with section 56 of the Act when applied to cooperative banks) and the Rules in the matter of nomination in safe deposit lockers and articles kept in safe custody.
• If the prospective customer chooses not to avail the nomination facility despite being fully informed, the bank shall proceed to open the deposit account without imposing any restrictions, if otherwise found eligible, after obtaining a written declaration.
• In case of simultaneous nomination, if any nominee dies prior to receiving the deposit from the bank, the nomination in respect of such nominee alone shall become ineffective.
• Bank to provide acknowledgement within 3 days after ensuring that nomination has been made as per the provisions.
• Bank shall indicate the name of nominee in Passbook/TDR.