Line of credit support enables financing of Uzbekistan social infrastructure, subject to export eligibility and supply content rules.
A Government of India supported Line of Credit through Exim Bank finances Uzbekistan social infrastructure projects; exports must meet Foreign Trade Policy eligibility, be declared in Export Declaration Form/Shipping Bill per RBI instructions, and observe a minimum 75% India supply content (up to 25% external procurement). The LoC became effective September 12, 2022, with a terminal utilization period of 60 months from scheduled project completion. No agency commission is payable under the LoC, though exporters may use personal or EEFC funds for commissions subject to AD Category I bank approval after realization and applicable rules. AD banks must notify exporters and refer them to Exim Bank for details. Directions are issued under FEMA without prejudice to other statutory approvals.

Rupee Drawing Arrangement now permits use of BBPS for inbound bill payments to biller bank accounts, subject to KYC.
The circular authorises modification of the Rupee Drawing Arrangement to permit foreign inward remittances received under that arrangement to be credited to the bank account of the biller through the Bharat Bill Payment System (BBPS), subject to the procedural conditions and KYC requirements applicable to RDA transfers through other electronic modes, and directs Category I Authorised Dealer banks to notify constituents.

Line of Credit conditions mandate majority Indian sourcing and RBI procedural compliance for project export financing under FEMA.
Exim Bank's Government of India supported Line of Credit finances the Parliament building project in Eswatini subject to Foreign Trade Policy eligibility and Exim Bank approval. At least 65 per cent of contract value must be sourced from India, with remaining procurement permitted abroad. Shipments require Export Declaration Form/Shipping Bill filing per RBI instructions. No agency commission is payable under the LoC, though exporters may remit commission from their own funds or EEFC balances after realization, subject to AD Category I bank compliance. Directions are issued under FEMA without prejudice to other approvals.

Overseas investment regime clarified: new rules streamline permissions, reporting and introduce late submission fee for delays.
The Directions operationalise the new Overseas Investment regime, replacing JV/WOS with the concepts of foreign entity and Indian entity, introducing strategic sector exceptions, and clarifying ODI/OPI definitions. They streamline permissions by widening the automatic route and dispensing with approvals for specified transactions, set procedures and documentation obligations for approval route cases via designated AD banks and online reporting (Form FC/ODI/OPI) with UIN allotment, define aggregation and treatment of financial commitments (including guarantees, pledges and ECB/EEFC/ADR/GDR reckoning), and establish reporting, compliance and Late Submission Fee rules with penalties and restrictions on further remittances until regularisation.

External Commercial Borrowings limit increase expands automatic route and raises funding cost ceiling for investment grade borrowers.
The circular increases the automatic route annual limit for eligible External Commercial Borrowings and raises the all in cost ceiling by one percentage point; the enhanced all in cost ceiling is available only to borrowers with investment grade ratings from Indian credit rating agencies while others remain subject to the existing ceiling. The relaxations are time limited, require AD Category I banks to notify constituents, amend Master Direction No.5, and are implemented via amendments to FEMA borrowing regulations under the powers conferred by the Foreign Exchange Management Act.

International trade settlement in Indian rupees enabled via Special Rupee Vostro Accounts, subject to approvals and compliance.
AD banks may open Special Rupee Vostro Accounts for correspondent banks to enable invoicing, payment and settlement of exports and imports in INR; exchange rates are market determined. Indian importers shall pay into these accounts and exporters shall be paid from their balances. Usual trade documentation, reporting and Master Direction conditions apply for advances, set offs and bank guarantees. AD banks must obtain Reserve Bank approval, verify correspondent bank jurisdictions against FATF guidance, and comply with FEMA reporting; the instructions are effective immediately.

Settlement currency flexibility: Indo Sri Lanka trade and current account transactions may be settled outside the ACU in permitted currencies.
Indo Sri Lanka current account and trade transactions may be settled outside the Asian Clearing Union (ACU) mechanism in any permitted currency until further notice. Category I Authorised Dealer banks must implement this change immediately, inform their constituents, and note that the circular operates under the Foreign Exchange Management Act while remaining subject to any other statutory permissions.

Overseas foreign currency borrowings can be used by AD Cat I banks for foreign currency lending, subject to ECB end use rules.
Authorised Dealer Category I banks may utilise funds raised from overseas foreign currency borrowings during the specified window for foreign currency lending to constituents in India, subject to the end use prescriptions applicable to External Commercial Borrowings and compliance with the Master Directions; the on lending permission subsists until maturity or repayment of the underlying borrowings.

FPI short-term investment relaxations permit temporary exemptions for certain debt securities, easing maturity and cap constraints.
The RBI exempted FPI investments in government securities and corporate bonds made between July 08, 2022 and October 31, 2022 from the 30% short-term investment limit until maturity or sale, and temporarily allowed FPIs to invest in commercial papers and non-convertible debentures with original maturity up to one year, thereby relaxing the one-year residual maturity requirement for corporate debt; these Directions take immediate effect.

Short-Term Line of Credit enables government-supported procurement finance for urea, with export declaration and utilization rules.
Exim Bank has extended a Government supported Short Term Line of Credit (STLoC) to Sri Lanka for procurement of urea fertilizer from India; exports must be eligible under the Foreign Trade Policy and shipments declared in the Export Declaration Form/Shipping Bill per Reserve Bank instructions. The STLoC's terminal utilization period is six months from signing, extendable by Exim Bank but not beyond twelve months. No agency commission is payable under the STLoC; exporters may pay commission from their own resources or EEFC balances after realization, subject to AD Category I bank compliance. Directions are issued under FEMA without prejudice to other statutory permissions.

Extension of FCRA registration validity granted for pending renewals until disposal or final refusal, which ends eligibility.
Certificates previously extended to 30.06.2022 with pending renewal applications, and certificates expiring during 01.07.2022-30.09.2022 where renewal was applied for before expiry, are extended until 30.09.2022 or until disposal of the renewal application, whichever is earlier. If a renewal application is refused, the certificate is deemed expired on the date of refusal and the association is ineligible to receive or utilise foreign contribution.

Discontinuation of return under Foreign Exchange Management Act removes non resident guarantee reporting obligation for authorised dealer banks.
The circular announces the discontinuation of the return "Details of guarantee availed and invoked from non-resident entities," removing the reporting obligation for Authorised Persons/Authorised Dealer banks effective from the quarter ending June 2022; the relevant Master Directions will be amended and AD banks are to notify their constituents, with the directions issued under FEMA regulatory powers and without prejudice to other statutory permissions.

Import of gold by qualified jewellers: advance remittances allowed through IFSCA authorised exchanges subject to due diligence and reporting.
Qualified Jewellers may import gold through IFSCA authorised exchanges using exchange approved payment mechanisms; advance remittances must be supported by sale contracts or irrevocable purchase orders, used only for bona fide imports and not leveraged, with unutilised amounts refunded if imports do not materialise. AD banks must perform due diligence, ensure complete customs documentation and matching of Outward Remittance Messages with Bills of Entry, and report transactions through prescribed monitoring and reporting systems. IFSCA will vet exchanges and ensure systems prevent misuse of advance remittances.

Settlement in INR permitted for specified trade financing with Sri Lanka under FEMA authorisation, outside ACU mechanism.
RBI permits settlement in INR outside the ACU mechanism for trade transactions arising from the Government guaranteed credit facility to Sri Lanka; financing is limited to exports eligible under the Foreign Trade Policy and agreed to be financed under the credit agreement, effective immediately, with AD Category I banks required to notify constituents and obtain full facility details, and the directions issued under FEMA subject to other legal permissions.

Government-supported Line of Credit enabling export financing with specified Indian content and compliance obligations for infrastructure projects.
Government-supported Line of Credit to SBM (Mauritius) Infrastructure Development Company Ltd permits financing of eligible exports from India for infrastructure projects, mandates that at least 75% of contract value be supplied from India (30% Indian content for the Metro Express Project), allows 25% foreign procurement, requires Export Declaration Form filing for shipments, disallows agency commission from the LoC while permitting exporter-paid commissions subject to realisation, and directs Authorised Dealer Category I banks to notify exporters and facilitate compliance; directions issued under the Foreign Exchange Management Act.

FPI investment limits: sectoral caps retained for government, state and corporate debt; CDS notional sale restricted.
FPI investment ceilings for FY 2022-23 keep existing caps of 6% for Government securities, 2% for SDLs and 15% for corporate bonds, retain the Fully Accessible Route for specified securities, allocate G sec increments 50:50 between General and Long term sub categories and add the full SDL increment to General SDLs; revised absolute limits for the two half year tranches are published. An aggregate cap on the notional amount of CDS sold by FPIs is fixed at 5% of outstanding corporate bonds with an additional notional limit allocated for FY 2022 23.

FCRA registration validity extension: provisional continuance until renewal disposal, refusal causes registration to be deemed expired.
The Government provisionally extends FCRA registration validity for entities with pending renewal applications until 30.06.2022 or disposal of the renewal application, and extends validity for entities whose five year term expires during 01.04.2022-30.06.2022 if they applied for renewal before expiry, subject to the same cut off; if renewal is refused the certificate is deemed to have expired on the date of refusal and the association cannot receive or utilise foreign contribution.

Foreign investment in LIC permitted via automatic route subject to statutory compliance and governance conditions.
The FDI Policy amendments permit foreign investment in the Life Insurance Corporation of India via the automatic route subject to specified statutory compliance and governance conditions; amend core definitions of Capital, Convertible Note, Foreign Investment, Indian Company, Share Based Employee Benefits and Subsidiary; clarify Real Estate Business exclusions; bifurcate "Other Conditions" into insurer/intermediary and LIC specific provisions including resident Indian majorities in board and key management, regulatory verification, pricing guidance for increases, and ESOP/share benefit reporting and approval requirements.

Line of Credit for export finance limits foreign sourcing, mandates domestic supply thresholds and sets strict utilization timelines.
Government-supported Line of Credit by Export-Import Bank finances purchases of eligible exports from India, requiring at least 75 per cent of contract value to be supplied from India and allowing up to 25 per cent procurement from abroad; terminal utilization is six months from signing, extendable but not beyond twelve months. Shipments must be declared in the Export Declaration Form, no agency commission is payable under the LoC (exporters may pay commission from own resources or EEFC balances subject to realization), and AD Category I banks must inform exporters and obtain LoC details. Directions issued under FEMA without prejudice to other approvals.

Government-backed line of credit enables export-financed supply of solar home systems subject to 75% domestic sourcing and EDF reporting.
Exim Bank's Government-supported Line of Credit to Guyana finances procurement and installation of 30,000 solar home systems, requiring at least 75 percent of goods, works and services to be supplied from India and permitting up to 25 percent procurement from outside India. The agreement is effective from February 14, 2022, with a terminal utilization period of 60 months; shipments must be declared in the Export Declaration Form. No agency commission is payable under the LoC, though exporters may pay commission from their own resources or EEFC balances after realization, subject to existing instructions.