Foreign direct investment by Bangladeshi citizens/entities permitted with prior government approval, subject to Schedule I conditions.
A citizen of Bangladesh or an entity incorporated in Bangladesh may purchase shares and convertible debentures of an Indian company under the Foreign Direct Investment scheme with the prior approval of the Foreign Investment Promotion Board, subject to the terms and conditions specified in Schedule I to the FEMA Transfer or Issue of Security Regulations; Authorised Dealer Category I banks should notify their customers accordingly.

Line of Credit for project exports requires majority India-sourced supply, GR/SDF shipment declarations and FEMA-based compliance.
Exim Bank's Line of Credit to Mali finances exports of eligible goods and services for an electricity transmission and distribution project, requires major India-sourced supply (at least eighty-five percent of contract value), mandates GR/SDF shipment declarations, sets differing LC opening deadlines for project and other supply contracts, disallows agency commission under the LOC while permitting exporter-funded commission remittance from own funds or EEFC balances subject to realization and compliance, and directs Authorised Dealer Category I banks to notify exporters and follow FEMA-based directions without prejudice to other permissions.

Rupee Vostro account rules require RBI approval and strict funding, collateral, KYC/AML and monitoring safeguards.
Prior RBI approval is required for AD Category I banks to open and maintain rupee and foreign currency vostro accounts of non resident Exchange Houses. Accounts are for inward personal remittances only, must operate on a credit only basis, prohibit outward remittances and cash disbursements, and require due diligence, legal documentation, licence verification and, where appropriate, collateral or guarantees. Operations may follow DDA, Non DDA or Speed Remittance procedures with specified funding, audit/inspection and reporting obligations to ensure funds cover pipeline debits and compliance with KYC/AML and internal control requirements.

Issue of shares under FDI must occur within prescribed period or advance refunded; banks must verify bonafides.
Companies receiving inward remittances as consideration for equity instruments must issue those instruments within the prescribed period, failing which the consideration must be refunded immediately to the non-resident investor by outward remittance or credit to the investor's NRE/FCNR(B) account. AD Category I banks may allow refunds after verifying bonafides and absence of interest on advances. Banks may seek Reserve Bank approval for refunds outstanding beyond the prescribed period, and companies with prior delayed cases must submit an action plan through their AD bank for specific approval. Advances are allowed only under the automatic route.

Line of Credit for export financing to PTA member countries under FEMA directions; shipment declarations and commission rules apply
Reserve Bank authorises a Line of Credit from Exim Bank to PTA Bank to finance exports of goods and services eligible under India's Foreign Trade Policy to PTA member countries, with specified effective and terminal dates for opening Letters of Credit and for disbursements. Shipments must be declared on GR/SDF Forms. No agency commission is ordinarily payable, but Reserve Bank may permit commission up to a prescribed maximum for exports requiring after sales service, to be deducted from invoices and reflected in reimbursable disbursements with prior approval. AD Category I banks must inform exporters and obtain LOC details from Exim Bank. Directions issued under sections 10(4) and 11(1) FEMA.

Direct receipt of import documents relaxed for rough diamond imports, allowing banks to remit when importer receives documents directly.
Authorised Dealer Category I banks may permit remittances for rough diamond imports where the importer has received import bills/documents directly from the overseas supplier, provided documentary evidence is submitted at remittance, the transaction complies with the Foreign Trade Policy, banks are satisfied of the bonafides, complete KYC and due diligence on the importer, and obtain a report on each overseas supplier from the overseas banker or reputed credit agency.

Commodity hedging: authorised oil companies may hedge limited inventory exposure via authorised banks using OTC or exchange derivatives.
Domestic oil refiners and marketers are permitted to hedge a capped portion of inventory price exposure overseas through authorised AD Category - I banks using OTC or exchange traded derivatives up to one year tenor. AD Category - I banks must ensure Board approved policies specifically permit inventory hedging and OTC dealings, include mark to market and counterparty rules, conduct suitability and due diligence checks, and require half yearly Board reporting of OTC transactions; other existing circular conditions and Reserve Bank approvals where delegated do apply.

Line of Credit facilitates India-sourced exports for an IT training project, subject to FEMA compliance and export formalities.
A Line of Credit is extended by Export-Import Bank to the Government of the Republic of Senegal for an IT training project, allowing exports of eligible goods and services under the Foreign Trade Policy provided at least 85 per cent of contract value is supplied from India. The Credit Agreement is effective from September 19, 2007, with prescribed deadlines for opening Letters of Credit. 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 for commission after realisation, subject to prevailing rules; AD Category I banks must notify exporters and facilitate compliant remittances. The circular is issued under FEMA.

Forward contracts liberalisation permits self declaration hedging for residents and SME access with bank suitability checks.
RBI permits AD Category I banks to allow SMEs to book, cancel, rebook and roll over forward contracts without underlying documents subject to SME eligibility, alignment with credit facilities, bank due diligence on appropriateness and suitability, and declaration of other forwards; resident individuals may book forward contracts on self declaration through their bank within a prescribed aggregate notional ceiling and tenor limits, subject to deliverability, cancellability for cash flow mismatches, AML/KYC compliance, suitability checks and quarterly reporting to the Reserve Bank.

Anti-money laundering guidelines update: higher cash payment limit and PAN acceptance alter currency exchange compliance obligations.
The circular amends Anti-Money Laundering guidelines for Authorised Money Changers by raising the permissible cash payment limit for foreign visitors/non-resident Indians and by adding PAN Card to the list of acceptable documents for establishing relationships with companies or firms; other related provisions remain unchanged.

EEFC account liberalisation allows exporters to earn interest on balances up to a specified capped limit, temporarily easing foreign currency management.
Exporters are permitted to earn interest on Exchange Earner's Foreign Currency (EEFC) accounts up to a specified capped outstanding balance for a temporary period. Account holders may convert balances into term deposits of up to one year maturing on or before the expiry date; interest rates are to be fixed by banks. Amendments to the governing FEMA regulations will be issued, and Authorised Dealer Category I banks must inform their constituents. The directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act and do not affect other statutory permissions.

Overseas investment liberalisation: mutual funds permitted expanded instrument classes and higher aggregate ceiling, subject to reporting requirements.
Mutual funds registered in India may increase aggregate overseas allocations and invest in an expanded range of foreign instruments, including ADRs/GDRs, overseas listed equity, public offerings for overseas listings, investment grade foreign debt and money market instruments, repos (without borrowing), investment grade government securities, exchange traded derivatives for hedging, short term deposits with rated banks, and units of overseas mutual funds or unit trusts; monthly reporting by AD Category I banks to the Reserve Bank remains mandatory.

Overseas direct investment liberalisation expands permissible overseas investment limits and eases portfolio rules for listed Indian companies.
AD Category I banks may allow overseas investments under the Automatic Route up to an enhanced ceiling calculated on the investing party's net worth as per the last audited balance sheet. Listed Indian companies are permitted to invest a larger proportion of their net worth in shares and in rated bonds or fixed income securities of listed overseas companies rated not below investment grade, and the reciprocal shareholding requirement has been removed; other conditions of the existing regulation remain unchanged.

Prepayment of External Commercial Borrowings permitted without prior approval, subject to minimum average maturity and review.
Authorised Dealer Category I banks may permit prepayment of External Commercial Borrowings without prior approval of the Reserve Bank, provided the minimum average maturity period applicable to the loan is complied with; the enhanced operational ceiling takes effect immediately and is subject to review, and banks must notify their constituents. The direction is issued under FEMA and does not affect other legal permissions that may be required.

Liberalised Remittance Scheme expanded to permit higher annual remittances for resident individuals across permitted current and capital transactions.
The Liberalised Remittance Scheme limit for resident individuals is enhanced with immediate effect, allowing Authorised Dealer Category I banks to permit remittances up to the revised annual ceiling per financial year for any permitted current or capital account transaction or a combination thereof; all other terms and conditions in prior A. P. (DIR Series) circulars remain unchanged and amendments to the FEMA Permissible Capital Account Transactions regulations will be notified separately.

Line of Credit enables financing for eligible exports to a foreign government under FEMA directions and export policy.
A public export finance institution made available a Line of Credit to a foreign government to finance exports of eligible goods and services, requiring at least eighty-five percent of supplies to be from India or of Indian origin. The Credit Agreement is effective from the stated date and prescribes outer time limits for opening Letters of Credit for project and supply contracts. Shipments must be declared on prescribed foreign exchange forms. No agency commission is payable under the credit, though exporters may pay commission from their own resources or EEFC balances subject to remittance rules. Directions are issued under the foreign exchange statute without prejudice to other required permissions.

Rupee loans for NRI ESOP purchases allow banks to finance share acquisitions under specified regulatory conditions.
Authorised Dealer Category I banks may grant rupee loans to NRI employees to acquire shares under ESOPs, subject to a board approved policy and conditions: loan capped at 90% of purchase price or Rupees 20 lakh per employee; bank determined interest and margin within regulatory directives; payment directly to the company; repayment by inward remittance or debit to NRO/NRE/FCNR(B) accounts; and inclusion of such loans in capital market exposure for compliance with prudential limits.

Line of credit for export finance sets shipment declaration and conditional agency commission rules requiring prior approval.
A Line of Credit from Exim Bank to the Eastern African Development Bank finances eligible exports to member countries, with defined effective and terminal dates and shipment declarations required on GR/SDF forms. Agency commission is generally disallowed under the facility but may be permitted up to a prescribed ceiling for exports requiring after sales service subject to prior approval and invoice deduction, with Exim Bank reimbursing the negotiating bank on a specified basis. Otherwise exporters must fund commissions from their own resources or EEFC balances, and AD Category I banks may allow remittance after full realisation subject to prevailing rules; directions are issued under FEMA.

Line of Credit terms require predominant domestic sourcing and specified utilisation periods, with FEMA-based compliance obligations.
A Line of Credit from Export-Import Bank of India to the Government of the Republic of Mali finances eligible exports including consultancy for an electricity transmission and distribution project, requiring at least eighty-five percent of goods and services to be supplied from India. The Credit Agreement is effective from July 2007 with separate utilisation periods for project and other supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use their own funds or EEFC balances for commission payments subject to AD Category - I bank compliance. Directions are issued under FEMA and do not affect other statutory approvals.

ECB threshold restricts large borrowings to overseas-use only, while smaller ECBs require overseas parking and approval for rupee use.
Borrowings above a specified large-value threshold per borrower per financial year are permitted only for foreign-currency expenditures for permissible end-uses and must be parked overseas rather than remitted to India; this applies under both the Automatic and Approval Routes. ECB below that threshold may be used for foreign-currency expenditures under the Automatic Route with proceeds parked overseas, while rupee use of such funds requires prior Reserve Bank approval under the Approval Route and funds remain parked overseas until needed.