Line of credit governs export financing to Myanmar with approved contracts, letters of credit, reimbursement and documentation rules.
The Government of India extended a line of credit to Myanmar to finance specified Indian capital goods, consultancy services and consumer durables on an f.o.b. basis covering 100 per cent of eligible contract value in U.S. dollars. Export contracts require prior approval by both Governments and must be forwarded to the Ministry of Finance; disbursements are to be made only under letters of credit opened by banks in Myanmar and advised to the State Bank of India, with a mandated reimbursement clause stating reimbursement by the State Bank of India from the credit and negotiability contingent on operative advice. Strict contractual and drawal deadlines, GR/SDF export documentation, limited agency commission rules, and penalties under FEMA are prescribed.

Foreign direct investment policy expanded: greater automatic approvals for key sectors; higher stakes require government approval.
Revision liberalises FDI by expanding automatic-route permissions and specifying sectors where higher foreign participation requires prior government approval. Key operative provisions permit FDI in manufacture of drugs and pharmaceuticals subject to prior approval for licensable and recombinant DNA products; airports, hotels and tourism, courier services (excluding letter distribution), mass rapid transport systems with associated real estate, integrated townships (subject to notified norms), and defence and specified telecom services under licensing or approval regimes. NRI investment in foreign exchange is fully repatriable while rupee account investments remain non-repatriable.

Nominated bank designation expanded to include Centurion Bank for exports against state credit repayment.
Centurion Bank Ltd. is added to the list of nominated banks authorised to handle exports to Russia against repayment of State credit per Annexure I to the earlier circular. Authorised dealers must notify their constituents of this inclusion. The directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, and non observance invites penalties under the Act.

Overseas direct investment liberalisation permits higher limits and expanded automatic route for Indian entities to invest abroad.
Amendments liberalise overseas direct investment by increasing limits under the Automatic Route, removing a prior profitability condition, and raising rupee ceilings for certain neighbouring countries; permit full utilisation of ADR/GDR proceeds and swap acquisitions subject to conditions; allow Reserve Bank block allocation of foreign exchange on application; authorise registered partnership firms to invest abroad under specified approval routes and limited automatic allowances; and impose procedural reporting, documentation, identification number, and annual performance report requirements for authorised dealers and investing firms.

Export obligation removal: licences and LOIs deemed exempt where the item has been dereserved, simplifying exemption procedure.
Industrial licences and Letters of Intent that originally carried an export obligation for items reserved to the Small Scale Sector will be deemed exempt from that export obligation where those items have been dereserved by Gazette notification; no separate amendment or endorsement is required, and attaching this Press Note with the relevant dereservation notification will suffice to obtain exemption. Holders may alternatively file an Industrial Entrepreneurs' Memorandum in lieu of IL/LOI where permitted and where licence conditions are to be varied.

Line of Credit enables export finance to specified East African countries under defined approval, L/C, inspection and reimbursement rules.
The circular prescribes terms for an Exim Bank line of credit to finance eligible Indian exports to specified East African Development Bank member countries: Exim Bank approval is required for each contract; financing covers up to ninety percent of the contract price with a minimum contract size; contracts must provide for a ten percent advance and the balance under an irrevocable letter of credit with pre-shipment inspection and an inspection certificate. Negotiating banks pay beneficiaries in Indian Rupees on presentation of compliant documents and are reimbursed by Exim Bank in U.S. dollars pursuant to negotiated procedures, with allocation of bank charges and GR/SDF reporting requirements.

FDI liberalisation in NBFCs: automatic route subject to RBI guidelines and relaxed subsidiary rules and revised upfront capital conditions
Liberalisation sets FDI thresholds with tiered upfront capital requirements by foreign equity bands; highest foreign equity band requires a larger total investment with part upfront and balance within a prescribed period. Wholly owned operating subsidiaries are permitted without mandatory disinvestment if the highest-band capital condition is met. Joint ventures at or below the three-quarter foreign equity level may form subsidiaries provided the subsidiaries meet the applicable minimum capital inflow. FDI in NBFCs is on the automatic route subject to Reserve Bank of India guidelines and earlier Press Notes are modified accordingly.

Write off of unrealised export bills allowed with documentation and RBI reporting, subject to exclusions and safeguards.
Authorised dealers may permit write off of unrealised export bills for recognised status holder and manufacturer exporters within an annual ceiling tied to average annual realisations over the preceding three years. Permission requires a Chartered Accountant's certificate detailing three-year realisations, prior write offs, GR/SDF and bill particulars, and surrender of any export benefits. Excluded are exports to jurisdictions with externalisation issues and GR/SDFs under investigation or litigation. Authorised dealers must submit duplicate GR/SDFs with a certified R-Return and report write offs to the Reserve Bank in form EBW; directions are issued under FEMA.

Current account remittance restrictions require prior government or RBI approval for specified overseas payments and EEFC transfers.
Amendment to the Current Account Transactions Rules tightens prior approval requirements and extends applicability of restrictions to remittances made from EEFC accounts. State Government advertising abroad (except specified purposes) now needs Ministry of Finance (DEA) approval. Gift and donation remittances above annual ceilings, certain commissions, trademark/franchise payments, consultancy fees above project thresholds and reimbursement of pre incorporation expenses require prior Reserve Bank approval. Authorised dealers must ensure compliance; circular issued under Sections 10(4) and 11(1) of FEMA, 1999.

Foreign exchange regulations restrict EEFC credit facilities and revise account limits, altering foreign investment and remittance permissions.
Regulatory amendments under FEMA revise EEFC account treatment-prohibiting credit facilities against balances, disallowing term deposits, requiring non interest current accounts and resetting eligible credit limits for export and other units-while enabling SEZ units to credit full foreign receipts. The changes clarify guarantee discharge and repayment to non resident guarantors' foreign or non resident rupee accounts up to the rupee equivalent paid, restrict foreign investment in print media, permit specified foreign employee foreign bank accounts with salary and tax conditions, authorize hedging for crude importers, amend export repatriation and documentation, and empower the Reserve Bank to permit currency movement beyond existing thresholds.

Forwarder's Cargo Receipt acceptance in letters of credit permits negotiation where LC and sale contract expressly allow FCR.
Authorised dealers may accept Forwarder's Cargo Receipts issued by IATA approved agents in lieu of a bill of lading for negotiation or collection of shipping documents in export transactions backed by letters of credit only if the letter of credit expressly allows negotiation of the FCR and the underlying sale contract with the overseas buyer provides for acceptance of an FCR as the shipping document.

Foreign investment restriction in print media: permission for FIIs, NRIs, OCBs and FVCIs to buy equity and debentures withdrawn.
The facility permitting Foreign Institutional Investors, Non-Resident Indians, Overseas Corporate Bodies and Foreign Venture Capital Investors to purchase shares or convertible debentures of Indian companies engaged in the print media sector has been withdrawn; the restriction applies to acquisitions on both repatriation and non-repatriation bases and contraventions attract penalties under the Act.

Nostro account funding on Tom basis permitted; authorised dealers must submit ACU forms to DEIO before 3pm the day prior.
Allowance for funding of Nostro dollar accounts on a Tom basis is now permitted in addition to Spot; authorised dealers must use ACU 1 for funding and ACU 2 for repatriation of excess liquidity and submit applications to the external investments department before 3.00 p.m. on the day prior to the value date. A revised Slip replaces Form ACU 1. The directions are issued under FEMA and contraventions attract statutory penalties.

Foreign Venture Capital Investment permitted into Indian venture capital funds after FEMA regulation amendment, subject to compliance and penalties.
Registered Foreign Venture Capital Investors are authorised to invest in Indian Venture Capital Undertakings and Venture Capital Funds pursuant to the amendment to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 by Notification No.FEMA 32/2000-RB dated 26 December 2000; authorised dealers must inform constituents, and these directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, with penalties for non-compliance.

Automatic route access extended to international financial institutions for equity investments, subject to securities, banking regulations and sectoral caps.
The press note exempts recognised international financial institutions acquiring equity stakes without technical or trademark collaboration from the restriction in Press Note No. 18, permitting such investments via the automatic route subject to SEBI and RBI regulations and sectoral FDI caps.