Line of Credit enables India origin exports to Mozambique subject to sourcing, disbursement timelines and FEMA compliance.
A Line of Credit (LOC) of USD 250 million from Exim Bank to Mozambique finances eligible exports from India; at least 75% of contract value must be supplied from India, with up to 25% procured externally. The Credit Agreement is effective from December 26, 2012; LCs and disbursements are allowed up to 48 months from scheduled completion for project exports and 72 months from execution for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may remit commission from their own funds or EEFC balances after realisation, subject to remittance rules. Directions issued under FEMA.

Line of Credit conditions: export supply must be predominantly from India and compliance required under FEMA directions.
Exim Bank's Line of Credit to Guyana finances eligible goods, services and consultancy for a multispecialty hospital with at least 75 per cent of contract value supplied by Indian sellers and up to 25 per cent (excluding consultancy) procured abroad. The Credit Agreement is effective December 20, 2012, with prescribed last dates for Letters of Credit and disbursement; shipments must be declared on GR/SDF Forms. No agency commission is payable under the LOC, though exporters may use their own resources or EEFC balances for commission subject to remittance rules. AD Category-I banks must notify exporters; directions issued under FEMA.

ECB hedging requirement: MFIs and NGOs must fully hedge external borrowings; authorised banks ensure compliance at drawdown.
Extant ECB guidelines continue to apply to MFIs and NGOs accessing External Commercial Borrowings under the Automatic Route, and such ECBs must be fully hedged. Designated Authorised Dealer Category I banks are required to ensure at the time of drawdown that the borrower's forex exposure is fully hedged and to notify their constituents; the directions are issued under the foreign exchange statutory framework without prejudice to other required approvals.

Line of Credit enables financing of eligible Indian exports under sourcing and compliance conditions for a foreign government project.
Exim Bank's Line of Credit to the Government of Gambia finances eligible Indian exports, requiring at least 65 per cent of contract value to be supplied from India with up to 35 per cent procureable abroad. The Agreement is effective December 4, 2012, and provides differentiated periods for opening Letters of Credit and disbursement for project and supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances to pay commission subject to AD Category I bank permission after full realization. Directions issued under FEMA remain without prejudice to other statutory approvals.

External Commercial Borrowings for affordable housing permitted under approval route with NHB nodal role and specified borrower safeguards.
ECB are permitted under the approval route for low cost affordable housing and eligible slum rehabilitation projects where at least 60% of permissible FSI is for units up to 60 sq m. Developers and qualifying HFCs may borrow subject to detailed eligibility criteria, financial thresholds, loan caps to individual buyers, and mandatory full hedging into rupees. NHB is the nodal agency to certify project eligibility and may raise or on lend ECBs; FCCBs are prohibited and other ECB parameters remain applicable.

All-in-cost ceiling for external commercial borrowings remains extended until further review, maintaining existing ECB policy conditions.
Continuation of the all-in-cost ceiling for External Commercial Borrowings is directed to remain in force until March 31, 2013, subject to review; all other ECB policy aspects remain unchanged. The amended ECB policy takes immediate effect and AD Category I banks must inform their constituents. Directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act and are without prejudice to other statutory permissions.

Trade credit extension allows five-year finance for infrastructure capital imports, with relaxed initial contracting for existing credits.
Trade credit for infrastructure-sector companies is permitted up to five years for imports of capital goods (DGFT classified), provided the credit is contracted ab initio for the prescribed minimum period and AD Category I banks do not issue LC/guarantees/LoU/LoC for the extended period beyond three years; existing trade credits benefit from a temporary relaxation reducing the abinitio contracting minimum from fifteen months to six months, while the fifteen month requirement continues for future credits.

All-in-cost ceiling for trade credits extended pending review, amended ECB policy effective immediately, with banks to notify constituents.
The all-in-cost ceiling for trade credits into India will continue to apply until March 31, 2013 and will be reviewed thereafter; other aspects of Trade Credit policy remain unchanged. The amended ECB policy is effective immediately and subject to review. Authorised Dealer Category I banks are required to bring the circular to the notice of their constituents. The directions are issued under statutory powers and without prejudice to other legal permissions.

Line of Credit for export financing imposes local sourcing and compliance conditions on exporters and authorised banks.
The Export-Import Bank of India extended a Line of Credit to the Government of the United Republic of Tanzania for specified water-supply projects, requiring eligible goods, equipment and consultancy to be exported from India; at least 75 percent of contract value must be supplied from India and up to 25 percent (excluding consultancy) may be procured abroad. The agreement sets the operative effective date, distinct opening and disbursement timelines for project and supply contracts, mandates GR/SDF shipment declarations, prohibits payment of agency commission under the LOC while permitting exporter-funded commission subject to realisation and remittance rules, and directs AD Category I banks to ensure compliance under FEMA.

Line of Credit to foreign government conditions export content, supplier origin, shipment declarations and FEMA compliance.
Provision of a Line of Credit by Export Import Bank of India to the Government of Togo conditions eligible exports and supplier origin: at least 75 per cent of contract value for goods and services (including consultancy) must be supplied from India, up to 25 per cent of non consultancy goods and services may be sourced abroad. The Agreement fixes effective and execution dates that determine the permissible periods for opening Letters of Credit and disbursements for project and supply contracts, and prescribes shipment declarations, agency commission restrictions, and compliance under FEMA.

Reporting obligations for liaison and branch offices: AACs with audited accounts must be furnished to tax authorities and endorsed on renewal.
Liaison and branch offices of foreign entities must furnish Annual Activity Certificates to the Director General of Income Tax (International Taxation) accompanied by audited financial statements, including a receipt and payment account. On renewal of LO permissions, Authorised Dealer Category I banks should endorse a copy of each renewal to the DGIT (International Taxation). Authorised Dealer Category I banks are responsible for notifying their constituents and ensuring compliance with these reporting requirements, which are issued under foreign exchange regulatory powers without prejudice to other statutory permissions.

External Commercial Borrowings policy relaxed for spectrum bidders allowing refinancing of rupee loans and bridge finance under automatic route.
Successful 2G spectrum bidders may refinance rupee loans used for upfront payments with long term ECBs under the automatic route if raised within eighteen months, with the designated AD Category I bank evidencing payment and monitoring end use; short term bridge finance in foreign currency is permitted under the automatic route replaceable by long term ECB within eighteen months subject to ECB guidelines; ECB from an ultimate parent is allowed without a maximum liability equity ratio provided the lender holds at least twenty five percent paid up equity. Other ECB parameters remain unchanged.

Special Currency Basket value revised, requiring authorised dealer banks to implement the updated rupee valuation and notify constituents.
The Reserve Bank notifies a revised rupee value for the Special Currency Basket, superseding the earlier indicated value, and fixes the revised valuation with effect from a specified date. Category I Authorised Dealer banks are directed to implement the revised valuation for settlements under the deferred payment arrangements and to inform their constituents. The directions are issued under sections 10(4) and 11(1) of FEMA and do not prejudice other legal permissions or approvals.

Repatriation period liberalisation allows twelve month realisation of export proceeds, extending the compliance window for exporters and banks.
The circular extends an administrative liberalisation allowing AD Category I banks to permit realization and repatriation of the full export value of goods or software within a twelve month period from the date of export for a specified temporary window, leaves SEZ and external warehouse export provisions unchanged, and directs banks to inform constituents while noting that the directions are issued under statutory foreign exchange powers and do not affect other legal permissions or approvals.

KYC/AML obligations: passport may serve as identity and address proof for foreign tourists; franchisers remain responsible for compliance.
The circular relaxes documentary KYC requirements for money changing Authorised Persons by specifying acceptable identity and address documents, allowing a passport copy as both identity and address proof for foreign tourists, and permitting passport-plus-stamped-visa with a signed declaration when no address appears; the guidance applies equally to agents/franchisees and places on franchisers responsibility for their agents' compliance, issued under FEMA and the PMLA.

Concurrent audit requirement for multiple-branch authorised money changers permits value-wise split between monthly and quarterly audits.
The memorandum permits multiple-branch authorised money changers to adopt a system of Concurrent Audit covering eighty per cent of transaction value on a monthly basis and the remaining twenty per cent value on a quarterly basis, modifying the prior requirement that all multiple-branch AMCs have monthly audits; single-branch AMCs above the existing turnover threshold remain subject to monthly audit requirements, and all other prior instructions continue to apply.

Money Transfer Service Scheme: authorised persons must update and verify sub agent lists and notify regulatory offices promptly.
Authorised persons under the Money Transfer Service Scheme must notify immediately any additions or deletions to their Sub Agent lists to the Foreign Exchange Department regional offices and the Central Office, verify the list posted on the Bank's website regularly, report discrepancies promptly, and confirm the veracity of the posted list to the Central Office in writing or by e mail within fifteen days after each quarter's end.

External Commercial Borrowings by SIDBI allowed for on lending to MSMEs, requiring hedging and route based approvals.
SIDBI is authorised to avail External Commercial Borrowings for on lending to the MSME sector, with on lending permitted in INR or foreign currency; INR on lending requires full hedging of foreign currency risk by SIDBI, while foreign currency on lending is limited to beneficiaries with a natural hedge. ECB for on lending up to fifty per cent of SIDBI's owned funds is under the automatic route, amounts beyond that require approval and are subject to an annual ceiling. Proceeds must be used only for permissible end uses and other ECB conditions remain applicable.

Simplified Softex procedure allows eligible software exporters to submit consolidated electronic export declarations under revised certification rules.
The revised Softex Procedure is extended to all STPIs immediately, allowing software exporters who meet defined commercial thresholds to submit a consolidated Excel statement as specified in A.P. (DIR Series) Circular No.80 dated February 15, 2012, in place of individual SOFTEX form certification; Authorised Dealers must notify constituents and the directions are issued under the Foreign Exchange Management Act.

Sale of foreign exchange to DTA units allowed for payments to SEZ suppliers, subject to Letter of Approval requirement.
Authorised Dealer Category I banks may sell foreign exchange to DTA units to make payments in foreign exchange to SEZ units for goods and services supplied, provided the SEZ unit's Letter of Approval from the Development Commissioner explicitly permits such supply to the DTA unit and payment in foreign exchange.