Line of Credit support for export procurement sets Indian supply requirement and foreign exchange and compliance conditions.
A Government of India supported Line of Credit from Exim Bank to the Republic of Senegal finances bus procurement, requiring at least 75% of contract value supplied from India and permitting 25% foreign procurement; the LOC is effective from February 16, 2017 with a 60 month terminal utilization period. Shipments must be declared on the Export Declaration Form. No agency commission is payable under the LOC, though exporters may use own resources or EEFC balances for commission payments subject to realisation and applicable rules; AD Category I banks must notify exporters and may allow remittances accordingly. The directions are issued under the Foreign Exchange Management Act.

Line of Credit supports Malawi water project; majority sourcing from India, shipments require Export Declaration Form compliance.
Exim Bank provided a Government of India supported Line of Credit to Malawi for a water supply project, permitting financing of eligible Indian exports including goods, plant, machinery and consultancy; the contract mandates that the majority of goods and services be supplied from India while a portion may be procured abroad, shipments must be declared on the Export Declaration Form, and the LOC is subject to a terminal utilisation period. No agency commission is payable under the LOC, though exporters may remit commission from own funds or EEFC balances after full realisation, subject to remittance rules and Authorised Dealer Category I bank oversight.

Government-supported Line of Credit requires majority Indian-sourced supplies, EDF shipment declaration, and exporter-funded commissions allowed.
A Government of India supported Line of Credit to Kenya finances eligible exports under India's Foreign Trade Policy, requires a substantial portion of contract value to be supplied from India with the balance possibly procured abroad, mandates Export Declaration Form filing for shipments, sets a terminal utilization period post project completion, disallows agency commission under the LOC while permitting exporter-funded commission remittances from own funds or Exchange Earners' Foreign Currency Account after realization, and directs Authorised Dealer Category I banks to notify exporters; issued under the Foreign Exchange Management Act.

Line of Credit supported by Government enables export financing with Indian content requirement and FEMA-directed compliance.
Exim Bank's Government of India supported Line of Credit to Kenya finances eligible imports of goods, machinery and services from India for a textile factory upgrade, requiring at least 72 per cent Indian-sourced value and permitting up to 28 per cent foreign procurement; the LOC is effective from February 2017 with a terminal utilization period of 60 months. Shipments must be declared on the Export Declaration Form and exporters must follow Reserve Bank and FEMA instructions. No agency commission is payable under the LOC, though exporters may remit commission from their own resources or EEFC balances after full realization and subject to extant rules.

Money Transfer Service Scheme: authorised Indian Agents must meet fund, due diligence, collateral, KYC/AML and reporting requirements.
The Master Direction prescribes the MTSS regulatory framework: only specified authorised entities meeting minimum Net Owned Funds and fitness criteria may be authorised by the Reserve Bank as Indian Agents for inward personal remittances; applications must include due diligence documents on Overseas Principals, audited financials and banker reports; Overseas Principals must meet net worth and AML requirements and remain responsible for agent activities; Sub Agents require specified due diligence and quarterly reporting; operational limits, KYC/AML/CFT controls, collateral requirements and renewal and inspection procedures are mandated.

Foreign investment in stock exchanges permitted under automatic route, subject to securities regulations and SEBI/RBI guidelines.
Foreign investment in stock exchanges, derivative exchanges, depositories and clearing corporations is permitted up to forty-nine percent of equity under the automatic route. Such investment, including by FPIs, is subject to the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, the SEBI (Depositories and Participants) Regulations, 1996, and other guidelines/regulations issued by the Central Government, SEBI and the Reserve Bank of India as amended. Undefined terms in these regulations shall have the meanings assigned in the Companies Act, the Securities Contracts (Regulation) Act, the SEBI Act, the Depositories Act or the relevant SEBI regulations.

Rupee denominated bond investor eligibility expanded to include multilateral and regional financial institutions, effective immediately.
Permit Multilateral and Regional Financial Institutions where India is a member to invest in Rupee denominated bonds issued overseas, expanding the recognised investor class under prior circulars; all other provisions of A. P. (DIR Series) Circular No.60 (April 13, 2016), Master Direction No.5 (January 1, 2016) and A. P. (DIR Series) Circular No.29 (September 29, 2015) remain unchanged. The change is effective from the date of this circular, relevant Master Direction paragraphs will be updated, and the directions are issued under sections 10(4) and 11(2) of FEMA, 1999.

NRI access to exchange traded currency derivatives permitted to hedge Rupee exposure; designated banks must monitor and report positions.
Non resident Indians are permitted to transact in exchange traded currency derivatives to hedge Rupee currency risk from permitted current account transactions or Rupee denominated assets or liabilities, subject to terms and conditions. NRIs must designate an Authorised Dealer Category I bank to receive exchange/clearing transaction details, consolidate OTC and exchange positions, monitor aggregate exposure against underlying Rupee risk, and report transgressions; the onus of proving underlying exposure lies with the NRI and excess hedging may attract statutory penalties. Regulatory amendments and directions implement this framework.

Compounding of FEMA contraventions: regional offices now have expanded authority for delayed FLA filings; exceptions remain.
All Regional Offices of the Reserve Bank, except two specified offices, are authorised to compound delays in filing the Annual Return on Foreign Liabilities and Assets by Indian companies receiving foreign direct investment without any monetary limit; the two specified regional offices retain limited compounding authority while higher-value cases remain with the Central Office. Applications for compounding these contraventions must be submitted to the Regional Office of jurisdiction, and other contraventions continue to be filed with the Central Foreign Exchange Department. The modification is effective immediately and authorised dealers must inform constituents.

Prohibition on direct overseas investment bars investments into FATF non-cooperative jurisdictions, with banks required to notify clients under FEMA.
Indian parties are prohibited from making direct overseas investments-whether as joint ventures, wholly owned subsidiaries, or step down subsidiaries-in jurisdictions identified by the FATF as non co operative countries and territories, as per the FATF list or RBI notification; this prohibition is implemented by amendment to the FEMA notification, Authorised Dealer Category I banks must inform constituents, and Master Directions will be updated, with the directions issued under FEMA without prejudice to other statutory permissions.

Evidence of import via IDPMS replaces hardcopy BoE; AD Category-I banks must match and settle BoEs with remittances.
AD Category-I banks must rely on BoE data in the Import Data Processing and Monitoring System and discontinue hardcopy BoE submission where data exists. Banks shall enter or download BoE details, use the BOE Settlement message to match and settle BoEs with Outward Remittance Messages (permitting multiple ORMs per BoE and vice versa), issue an acknowledgement slip to importers on settlement, require importers to preserve the importer copy and acknowledgement, follow up on unsettled ORMs, and preserve audited BOE Settlement data under the Cyber Security Framework unless investigating agencies direct otherwise.

Line of Credit supports eligible export services requiring majority India-sourced supply and defined disbursement timelines.
A Government of India supported Line of Credit by Exim Bank to Burundi finances a detailed project report for an Integrated Food Processing Complex; services must be eligible under the Foreign Trade Policy and at least 75% of the contract price for services must be supplied by the seller from India with the remainder allowed from outside. The LOC became effective December 20, 2016; letters of credit and disbursements are subject to specified timelines (48 months for project export contracts from scheduled completion dates and 72 months for supply contracts from execution) and shipments must be declared per Reserve Bank instructions. No agency commission is payable under the LOC, but exporters may remit commission from own funds or EEFC balances after realization subject to prevailing rules.

Government-supported line of credit sets export-content, disbursement timelines and reporting obligations under foreign exchange regulations.
A Government of India-supported Line of Credit from Exim Bank to Burundi finances farm mechanization and limits eligible contracts to goods, machinery, equipment and services permitted under India's Foreign Trade Policy. At least 75% of contract value must be supplied from India, with up to 25% procured abroad. The LOC sets separate disbursement timeframes for project export and supply contracts and requires shipments to be declared on EDF/SDF forms. Agency commission is not payable from the LOC; exporters may use their own funds or EEFC balances subject to AD Category I bank compliance and realization of contract proceeds.

Exchange facility for foreign citizens extended; authorised persons to continue limited weekly conversion of foreign currency into Indian notes.
The Reserve Bank extended existing instructions permitting foreign citizens to exchange foreign exchange for Indian currency notes under a prescribed weekly limit, directing Authorised Persons to continue administering the facility and inform their constituents; the directions are issued under the Foreign Exchange Management Act, 1999 and without prejudice to other statutory permissions.

Foreign Portfolio Investor access to non-convertible debentures permitted; direct transactions allowed under FEMA regulatory framework.
Eligible overseas investors may acquire non-convertible debentures/bonds either directly or in accordance with prevailing market practice on a repatriation basis, subject to existing regulatory terms and any specifications issued by the financial regulator and securities regulator. Category I authorised dealers must inform constituents, and the directions are issued under the foreign exchange statute without prejudice to other required permissions.

Exchange facility for foreign citizens extended; authorised persons to continue limited weekly currency exchanges under FEMA directions.
Authorization permitting foreign citizens to convert foreign currency into Indian currency notes for limited weekly amounts is extended through December 31, 2016; Authorized Persons may continue exchanges within the previously prescribed weekly ceiling and must inform their constituents. The directions are issued under statutory powers and are stated to be without prejudice to other permissions or approvals required under any other law.

Line of Credit requirements mandate 75% India-sourced supply and specified LC/disbursement timelines under FEMA directions.
A Government of India supported Line of Credit to the Republic of Guinea finances hospital projects and mandates at least 75% of contract value be supplied from India with up to 25% import content. The LOC prescribes separate timelines for opening Letters of Credit and disbursement for project export and supply contracts, requires EDF/SDF shipment declarations, disallows agency commission under the LOC while permitting exporter-funded commissions under prevailing remittance rules, and directs AD Category-I banks to notify exporters; the directions are issued under FEMA provisions.

Exchange facility for foreign citizens: limited weekly conversion to Indian currency with passport and self-declaration requirements.
Foreign passport holders may exchange foreign currency for Indian currency notes up to a prescribed weekly cap subject to submission of a self-declaration that the facility has not been used that week; the Authorized Person must record passport details, retain the declaration, ensure the weekly cap is not exceeded, and inform constituents. Existing instructions on issuance of prepaid instruments by Authorised Dealer Category I banks continue; directions are issued under FEMA and do not affect other statutory permissions.

FPI corporate debt investment expanded to include unlisted bonds and securitised instruments subject to maturity and end use limits.
FPIs may invest in unlisted non convertible corporate debentures/bonds subject to a minimum three year residual maturity and end use restrictions prohibiting real estate business, capital market activities and land purchase, with custodians ensuring compliance. FPIs may also invest in securitised debt instruments issued by SPVs (originated by banks, FIs or NBFCs) or listed under securitised debt listing regulations; securitised instruments are not subject to the three year maturity requirement. These investments are subject to an aggregate cap within existing corporate bond limits and existing FPI debt market conditions remain applicable.

Foreign exchange insurance rules allow IRDAI permitted policies, set premium and claim currency rules, and govern reinsurance and overseas funds.
The 2015 Regulations permit IRDAI authorised general/health insurance policies to be placed in foreign exchange without RBI permission and establish currency specific rules for premium payment and claim settlement tied to the payer's and beneficiary's residency and currency of premium. They prescribe documentary and procedural conditions for foreign currency remittances for claims, govern reinsurance arrangements and premium remittances subject to insurer board approvals and IRDAI guidelines, allow insurers to maintain limited foreign currency accounts abroad, and permit insurers' investments abroad and specified utilisation of overseas funds in accordance with host country and IRDAI requirements.