OTC foreign exchange derivatives: framework allows eligible residents and AD banks to hedge currency, commodity and freight risks with reporting.
Regulatory guidelines permit specified residents and non residents to use a defined set of OTC and exchange traded instruments to hedge contracted, probable and certain special exposures in foreign exchange, commodity price and freight risks, subject to documentary verification, limits that the notional and tenor not exceed underlying exposures, auditor certifications, user appropriateness and suitability checks by Authorised Dealer Category I banks, and extensive periodic reporting to the Reserve Bank.

ACU settlement suspension permits eligible current account and trade transactions with Iran to be settled in permitted currencies outside ACU.
All eligible current account transactions, including export/import trade with Iran, may be settled in any permitted currency outside the ACU mechanism until further notice; AD Category I banks must notify constituents. Amendments to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 will be issued, and the directions are issued under powers granted by the Foreign Exchange Management Act.

Payments for import of oil or gas may be settled in any permitted currency outside the ACU mechanism.
Payments for import of oil or gas shall be settled in any permitted currency outside the ACU mechanism, with necessary amendments to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 to be issued; Authorised Dealer banks are to notify constituents and the directions are issued under sections 10(4) and 11(1) of the foreign exchange statute.

Reporting requirement for international debit card forex transactions discontinued; banks must stop annual statements to regulator.
Banks authorised to deal in foreign exchange are directed to discontinue the annual submission of statements reporting aggregate foreign exchange utilization by holders of international debit, store value, charge and smart cards that previously triggered a reporting threshold, with all other instructions of the earlier circular remaining in force; the direction is issued under the Foreign Exchange Management Act and is without prejudice to permissions under other laws.

KYC/AML/CFT obligations: Indian MTSS agents must treat FATF-identified jurisdictions as higher risk and ensure PMLA compliance.
Authorised Persons under the Money Transfer Service Scheme must apply enhanced Know Your Customer, Anti Money Laundering and Combating the Financing of Terrorism safeguards for cross border inward remittances by accounting for FATF identified jurisdictions with strategic deficiencies; Principal Officers must acknowledge receipt and ensure constituents are informed. These measures are issued under the Foreign Exchange Management Act and the Prevention of Money Laundering Act, and non compliance may attract penal provisions and record maintenance obligations under the applicable rules.

Know Your Customer obligations require risk based due diligence for money changers in light of FATF jurisdictional AML/CFT deficiencies.
Authorised Persons in money changing activities must apply a risk based Know Your Customer regime by considering FATF identified jurisdictional AML/CFT deficiencies when dealing with persons or businesses from those jurisdictions, circulate the guidance to constituents, and have the Principal Officer acknowledge receipt; non compliance may attract penalties under the applicable foreign exchange and anti money laundering statutes and rules.

AML/CFT risk-based screening: consider FATF-identified jurisdictions in cross-border inward remittances and apply enhanced due diligence measures.
Authorised Persons under the Money Transfer Service Scheme must factor AML/CFT and KYC risks from jurisdictions identified as strategically deficient into customer acceptance, transaction monitoring and relationship due diligence for cross border inward remittances; the circular requires notifying constituents and Principal Officer acknowledgement, and is issued under foreign exchange and anti money laundering statutes and rules with penalties for non compliance.

KYC/AML obligations require heightened due diligence for transactions with parties from FATF identified high risk jurisdictions under PMLA and FEMA.
Authorised Persons must assess and mitigate risks from jurisdictions identified by the FATF as having strategic AML/CFT deficiencies, applying enhanced customer acceptance, ongoing due diligence and transaction monitoring for persons, legal entities and financial institutions from those jurisdictions; the directions are issued under FEMA and the PMLA framework and non compliance may attract penal consequences.

Customer due diligence obligations require identifying beneficial owners, ongoing monitoring and prohibition of anonymous accounts.
Amendments require banking companies, financial institutions and intermediaries to identify and verify beneficial owners, exercise ongoing due diligence, closely examine transactions for consistency with client profiles and verify source of funds where necessary; prohibit anonymous or fictitious accounts; mandate re verification and enhanced measures upon suspicion of money laundering or terrorism financing; and clarify that identity records include identification data, account files and business correspondence, while cessation of transactions means termination of an account or business relationship.

Line of Credit compliance requires exports to meet supply-content rules and FEMA authorisations for project financing.
Exim Bank's Line of Credit finances eligible Indian exports and consultancy for a Congolese hydroelectric project, requiring a prescribed minimum share of supplies from India with limited foreign procurement allowed; it sets effective and execution dates and deadlines for Letters of Credit and disbursements, mandates shipment declaration on GR/SDF forms, disallows agency commission under the LOC while permitting exporter-funded commission remittances under prevailing rules after realisation, tasks AD Category I banks to inform exporters and obtain full LOC details from Exim Bank, and issues directions under sections 10(4) and 11(1) of the Foreign Exchange Management Act without prejudice to other statutory approvals.

Line of Credit conditions require majority Indian-sourced supplies and set timelines for letters of credit, declarations, and commission rules.
A foreign credit agreement provides a Line of Credit to finance specified project and supply contracts, requiring that at least 75 per cent of eligible contract value be supplied from India while up to 25 per cent of non consultancy goods may be sourced abroad. The agreement sets deadlines for opening Letters of Credit and disbursement, requires shipment declarations on prescribed forms, disallows agency commission under the LOC but permits exporter-funded commission subject to remittance rules, and directs Authorised Dealer Category I banks to notify exporters; directions are issued under foreign exchange law.

KYC and AML risk-based screening required; transactions with high-risk jurisdictions demand enhanced scrutiny and documented findings.
KYC, AML and CFT obligations under the Money Transfer Service Scheme require Authorised Persons (Indian Agents) to adopt a risk-based approach to cross-border inward remittances, using FATF Statements and publicly available information to identify jurisdictions that do not or insufficiently apply FATF recommendations, apply enhanced due diligence and ongoing monitoring, examine and document transactions with no apparent economic or lawful purpose, retain findings and records, and ensure Sub-agents comply; directions are issued under FEMA and PMLA and non-compliance may attract penal provisions.

KYC/AML obligations require enhanced due diligence for customers from FATF identified risky jurisdictions and documented transaction monitoring.
Authorised Persons in money changing must apply KYC/AML/CFT measures, consider FATF identified high risk jurisdictions and other public information, and give enhanced scrutiny to dealings with persons and entities from jurisdictions that do not or insufficiently apply FATF recommendations. They must conduct ongoing monitoring, investigate transactions lacking an apparent lawful purpose, document findings and retain records for regulatory inspection. These obligations apply to agents and franchisees, with the Authorised Person accountable for ensuring compliance; non compliance may attract statutory penalties.

Customer Due Diligence: full CDD and STR filing required for suspicious cross-border remittances under MTSS.
Authorised Persons under MTSS must conduct full-scale Customer Due Diligence and withhold payment where identity or documentation cannot be verified; they must file an STR when no longer satisfied about a customer's true identity. Transactions involving Politically Exposed Persons require senior-level approval and ongoing enhanced monitoring; Principal Officers must ensure overall compliance and Indian Agents are responsible for sub-agent adherence.

KYC and AML requirements mandate enhanced due diligence and STR filing for suspicious money changing transactions and PEPs.
When an authorised money changer suspects money laundering or cannot apply low risk treatment, it must perform full scale customer due diligence prior to transactions; where CDD cannot be completed the authorised person must not transact, must terminate the business relationship if necessary, and must file a Suspicious Transaction Report with FIU IND. PEP transactions require senior level approval and enhanced ongoing monitoring, and the Principal Officer must ensure overall compliance. These obligations extend to agents/franchisees and are issued under foreign exchange and anti money laundering laws with penal consequences for non compliance.

Repatriation of export receipts via online payment gateways permitted with due diligence, NOSTRO accounts, and prompt repatriation.
AD Category-I banks may repatriate export receipts facilitated by Online Payment Gateway Service Providers if they perform due diligence, limit the facility to low-value exports, open NOSTRO collection accounts into which all receipts are swept, permit only repatriation to exporters, payment of predetermined fees to OPGSPs, and charge-backs, repatriate balances to exporters promptly on importer confirmation within a short prescribed period, ensure appropriate purpose codes, report transactions to the central bank on request, and conduct quarterly reconciliation and audit; OPGSPs must open liaison offices and obtain prior approval as required.

Reporting obligation for authorised dealer banks requires electronic submission of branch categorisation data using RBIMOF and prescribed proformas.
AD Category I banks must notify the Reserve Bank of India of any changes in branch categorisation for foreign exchange dealings by preparing Proforma I or II using the RBIMOF Application package to ensure data compatibility, and e mailing a soft copy to the Department of Statistics and Information Management. The circular provides the download path for RBIMOF.exe on the Reserve Bank website and the procedure to access and save the Directory of AD Category branches from the DBIE portal.

Line of Credit requirements specify Indian-sourced content and compliance, and prescribe documentation and commission rules.
The Exim Bank Line of Credit to Mauritania finances designated potable water and agriculture projects; eligible exports must comply with India's Foreign Trade Policy, require a minimum of 85 per cent Indian-sourced supply (15 per cent from outside India permitted excluding consultancy), and observe specified effective dates and separate time-limits for opening Letters of Credit and disbursement for project and supply contracts.

Line of Credit for Ghana conditions India-sourced supply, shipment declarations, and restricted commission payment under regulatory directions.
Exim Bank extended a Line of Credit to Ghana to finance eligible India-origin goods, services and consultancy for specified projects and supply contracts, requiring a substantial India-sourced share of contract value, distinct timelines for Letters of Credit and disbursement by contract type, mandatory declaration of shipments on GR/SDF forms, prohibition of agency commission under the LOC subject to permitted remittance from exporter funds or EEFC balances after full payment, and duties on Category I Authorised Dealer banks to notify exporters and facilitate compliant remittances, with directions issued under regulatory powers without prejudice to other statutory permissions.

Consolidated FDI Policy effective Oct 1, 2010 clarifies routes, sectoral caps, downstream investment and reporting obligations.
The Circular consolidates FDI policy effective October 1, 2010; defines instruments, routes (Automatic and Government), and methodology for calculating total foreign investment (direct and indirect), including downstream investment rules for companies owned/controlled by non-residents. It incorporates substantive updates: prohibition of FDI in manufacture of certain tobacco products; definition of "controlled conditions" in agriculture and allied activities; clarification on value-addition for titanium mineral separation; treatment of share-premium for minimum capitalization; permission for partly-paid shares/warrants via Government route; allowances for downstream investment through internal accruals; NBFC subsidiary capitalization rules; sectoral caps, entry conditions, reporting obligations (Forms FC-GPR/FC-TRS/DR) and FEMA enforcement mechanisms.