Imagine your business has gathered the papers for a FEMA compounding application. The file is ready, but one question stops the handover: “Which RBI office should receive this?”
The nearest office may sound sensible. The office used for an earlier application may feel familiar. Neither is enough on its own.
RBI’s A.P. (DIR Series) Circular No. 28/2026-27, dated 23 October 2026, delegates compounding powers for overseas-investment, borrowing, lending and guarantee contraventions to select Regional Offices. The useful next step is to match your facts to the right route—not simply choose an address.
Key point: For overseas-investment matters, check the foreign entity’s UIN prefix. For borrowing, lending and guarantees, jurisdiction generally matters, with an important ODI-related exception. Some applications still go to CEFA at Central Office, Mumbai.
At a glance: start with the type of transaction
| Your situation | Route to check |
|---|---|
| Overseas-investment matter with UIN | Regional Office mapped to the UIN prefix |
| Overseas-investment matter with no UIN allotted | CEFA, Central Office, Mumbai |
| Borrowing, lending or guarantee matter | Applicable Regional Office jurisdiction |
| Lending or guarantee towards a foreign entity in which the applicant has ODI | Overseas-investment route |
| Multiple categories with powers delegated to different offices | May be submitted to CEFA, Mumbai |
This is a routing and delegation update. It does not announce a new fee formula or promise a processing time. Choosing an office correctly is not the same as establishing eligibility or deciding the merits of a contravention.
Step 1: describe the actual issue
Before looking up an address, identify the transaction category. Is the contravention about overseas investment? Borrowing? Lending? A guarantee? Are different categories and delegated offices involved?
A label such as “foreign payment issue” is too broad for a reliable routing decision. Ask the reviewer to identify the category from the records. Keep that explanation with the file so another person can follow the reasoning.
The circular, reference RBI/FED/2026-27/298, refers to Circular 17/2024-25 dated 1 October 2024 and the Master Directions on Compounding of Contraventions under FEMA, 1999 dated 22 April 2025.
Step 2: for overseas investment, read the UIN
RBI maps the receiving office to the UIN assigned to the foreign entity, overseas joint venture or overseas wholly owned subsidiary. Do not substitute the Indian applicant’s location for the prefix rule.
| Regional Office | UIN prefixes |
|---|---|
| Ahmedabad | AH |
| Bengaluru | BG |
| Mumbai | BL, BY, PJ |
| Kolkata | BN, CA, GA, GH |
| New Delhi | CG, JM, JR, KA, ND, PT, WR |
| Hyderabad | HY |
| Chennai | KO, MA |
Use the actual UIN evidence. Do not infer a prefix from where a group company operates or from an earlier application handled for someone else.
A practical example: the nearest office is not the test
Illustrative scenario: a business prepares an overseas-investment compounding application involving a foreign entity whose UIN begins BG. A colleague suggests using whichever RBI office is easiest for the team to reach.
Work through it this way:
- Category: establish that the application is an overseas-investment matter.
- Evidence: check the foreign entity’s actual UIN and record the BG prefix.
- Mapping: BG corresponds to Bengaluru under the circular.
- Boundary: this identifies the route only. It says nothing by itself about compoundability, cost or likely outcome.
Now change one fact: no UIN was allotted. The prefix table is no longer the route to use. The circular gives a separate CEFA instruction for that situation. This is why checking the underlying record matters more than choosing the most convenient office.
TaxQue tip: Keep a one-page routing note: transaction category, UIN evidence or jurisdiction basis, any ODI connection, and the reason for choosing CEFA if relevant. This is a suggested internal control, not a newly prescribed RBI form.
Step 3: handle the exceptions carefully
No UIN allotted: submit the application to the Cell for Effective implementation of FEMA (CEFA), Foreign Exchange Department, Central Office, Reserve Bank of India, 11th floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400001.
Borrowing, lending and guarantees: the general route is the Regional Office with jurisdiction over the Indian company’s or entity’s registered office, or the applicant’s domicile, as applicable. Check Part C of Annexure I to the Master Directions dated 22 April 2025 for jurisdiction details.
The ODI connection: if lending or a guarantee is towards a foreign entity in which the applicant has made overseas direct investment, follow the overseas-investment route instead. The transaction’s connection can change the routing answer.
Mixed categories: applications involving different sets of rules or regulations, with powers delegated to different offices, may be submitted to CEFA. Several transactions do not automatically make a file “mixed” for this purpose; review the categories and delegated offices.
Watch out: Do not treat “Regional Offices now handle more matters” as “every matter goes to the nearest Regional Office”. No-UIN cases, ODI-connected transactions and mixed-category applications need their own checks.
FAQs
Can we use the office that handled our earlier application?
Not without checking. Match the present transaction category, UIN or jurisdiction and any exception to the current directions.
What if the UIN status is unclear?
Establish whether one was allotted before choosing the route. Do not force an uncertain case into the prefix table.
Does every guarantee follow registered-office jurisdiction?
No. A guarantee towards a foreign entity in which the applicant has ODI follows the overseas-investment route described above.
Does this circular give new fees or faster completion dates?
It states no new fee amounts or processing timelines. Individual eligibility and application contents still need case-specific review.
References
- RBI Circular 28/2026-27, dated 23 October 2026 Official ↗, reference RBI/FED/2026-27/298. The official circular was successfully rechecked earlier.
- RBI official website Official ↗ for the referenced Master Directions dated 22 April 2025 and current updates.
Before submission: ask your AD bank to confirm the receiving office against the circular and current Master Directions. RBI asks AD Category-I banks and other authorised persons to bring the guidance to constituents’ notice.
TaxQue tip: Want a second pair of eyes on your next step? Talk to TaxQue about your business’s facts, without assuming a headline answers every question. info@taxque.in | 9311256088 | taxque.in.
