Export proceeds realisation: exporters to Latin America must remit proceeds within the prescribed period; limited exceptions preserved.
The circular discontinues the extended realisation facility for exports to specified Latin American countries for exports made on or after September 1, 2004, requiring exporters to realise full export proceeds within the prescribed six-month period, while preserving the extended facility for status holders and certain manufacturer/merchant exporters or traders with high-value export contracts as specified in earlier A.P. (DIR Series) circulars.

Amendments to foreign exchange regulations: authorised dealers to notify constituents of updated FDI, export and rupee loan rules.
Reserve Bank notified authorised dealers that amendments to the Foreign Exchange Management Regulations, 2000 have been issued and gazetted, enclosing the Notifications and directing dealers to inform constituents. The annex itemises amendments relating to the automatic route for residual FDI activities, export liberalisation (including exports by way of gifts), and liberalisation of rupee loans to non-resident Indians, with corresponding notification and Gazette references for compliance.

Non-resident deposit reporting: revised standardized electronic return requires new fields, high-value flags and fixed-position file format.
The Reserve Bank issued NRD-CSR version 2.1 requiring Authorised Dealers to submit monthly electronic ASCII-file reports of non-resident deposit stocks and flows using prescribed fixed-position field layouts and record-type codes. The revision mandates separate capture of aggregate and "high value" inflows/outflows, adds fields for Number of Accounts and Account Type, introduces "Students" as an account-holder category, and requires interest rates to be reported in basis points. Technical provisions include backward compatibility at head/nodal offices, RBI-controlled cut-off changes, default-branch monitoring, and installation instructions for the NRD-CSR package.

Line of Credit enables export financing to Hungary with prescribed documentation, limited commission for after sales service, and prior approval.
Exim Bank's Line of Credit finances exports of capital and engineering goods, technologies, industrial manufactures and related services to the Hungarian Export Import Bank; shipments must be declared on GR/SDF forms. Agency commission is generally not payable, but Reserve Bank may permit limited commission for exports requiring after sales service subject to prior approval and payment in Hungary by invoice deduction, with the reimbursable amount to the negotiating bank calculated after commission deduction and application of the prescribed reimbursement percentage. Exporters must fund any other commission from their own resources.

Resident foreign currency accounts can receive life insurance proceeds in foreign currency credited to RFC or RFC(D) accounts.
Proceeds of life insurance claims, maturity payments or surrender values payable in foreign currency by an Indian insurer authorised to undertake life insurance business may be credited to the beneficiary's Resident Foreign Currency (RFC) Account or Resident Foreign Currency (Domestic) [RFC(D)] Account, and authorised dealers are instructed to accept such credits following the regulatory amendment.

Line of credit framework for bilateral imports: credit covers full f.o.b. value, requires approvals and LC routing through central bank.
Disbursements under the line of credit occur through letters of credit opened by banks in Sri Lanka and advised to the State Bank of India, New Delhi; letters must be supported by the contract, include a prescribed reimbursement clause providing that reimbursement will be made by the State Bank of India from the line of credit, and finance the full f.o.b. value of eligible goods and services subject to government approvals, prohibition of agency commission, prescribed shipment declarations, and specified signing and drawdown deadlines.

Revision of special currency basket value: authorised dealers must apply the new rupee valuation and inform constituents.
The Reserve Bank of India issued a circular revising the rupee valuation of the special currency basket applicable to the Deferred Payment Protocols with the erstwhile USSR, directing all authorised dealers in foreign exchange to adopt the revised valuation for relevant transactions and to notify their constituents; the directions are issued under the regulatory authority of the Foreign Exchange Management Act.

Line of credit facility permits export finance under Exim Policy with commission restrictions and specified reimbursement and disbursement conditions.
A Line of Credit up to USD 50 million finances exports of capital goods, plant and machinery, industrial manufactures, consumer durables and other Exim Policy eligible items; shipments must be declared on GR/SDF forms. No agency commission is payable under the credit except that Reserve Bank may permit up to five percent commission for exports requiring after sales service, payable in the borrower country by deduction from the invoice, and Exim Bank's reimbursable amount to the negotiating bank will be ninety percent of the f.o.b./c.&f./c.i.f. value minus commission. Approval for commission must be obtained before shipment.

Import of gold: permitted to nominated agencies, approved banks and EOUs/SEZ units subject to EXIM and FEMA compliance.
Nominated agencies, approved banks and EOUs/SEZ units in the gems and jewellery sector may directly import gold in accordance with the EXIM Policy; ADs may open LCs and allow remittances only on behalf of those authorised importers, subject to prescribed credit period limits, strict KYC/AML due diligence, verification of supplier and importer credentials, preservation of documents for five years, and monthly reporting of import transactions to the Reserve Bank. These directions are issued under FEMA and do not replace other statutory approvals that may be required.

Line of Credit for export financing to Government of Angola with operational reporting, deadline and commission conditions.
Exim Bank has provided a Line of Credit to the Government of Angola to finance export of goods and services under India's Exim Policy, effective June 2004; letters of credit and disbursement are subject to specified deadlines, shipments must be declared on GR/SDF forms, and agency commission for after sales service may be permitted by Reserve Bank subject to approval and deduction from invoices with corresponding reduction in reimbursable amounts.

Foreign exchange regulation amendments notified; authorised dealers must inform constituents and provide enclosed FEMA notifications.
Amendments to the Foreign Exchange Management Regulations, 2000 have been notified and are annexed; the circular enumerates A.P.(DIR Series) circulars with corresponding FEMA notifications amending rules on foreign investment, transfer/issuance of securities by non residents, export of goods and services, disposal of duplicate export declaration forms, portfolio investment by registered FIIs, permissible capital account transactions, and foreign currency accounts, and instructs Authorised Dealers to notify their constituents and customers. The directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

EEFC account liberalisation permits eligible exporters and professionals to retain full foreign receipts, enabling use for foreign exchange needs.
Liberalisation of the Exchange Earners' Foreign Currency (EEFC) Account Scheme permits individual professionals to retain up to 100 percent of foreign earnings in EEFC accounts and classifies exporters into two tiers allowing either full or half retention of foreign receipts; Authorised Dealers may open and maintain EEFC accounts for eligible residents without referring applications to the Reserve Bank, and banks may operate customary facilities such as cheques, all under amendments to FEMA notifications and an administrative corrigendum.

Line of credit availability for exports to CIS countries under FEMA requires authorised dealers to notify constituents.
Exim Bank extended a Line of Credit of USD 10 million to Bank TuranAlem, Kazakhstan, available to finance exports from India to all twelve CIS countries identified in the circular. All other terms and conditions of the earlier notification remain unchanged. Authorised Dealers are instructed to notify constituents and advise exporters to obtain full facility details from Exim Bank. The directions are issued under FEMA sections 10(4) and 11(1).

EEFC account trade loans liberalised; larger foreign-bank-guaranteed advances allowed with existing reporting obligations.
Exporters may grant trade-related loans/advances from their EEFC Account to overseas importers without any overall ceiling, subject to FEMA regulation compliance; a guarantee of a bank of international repute situated outside India is required where the amount of the trade-related loan/advance by exporter out of his EEFC Account exceeds a higher prescribed threshold. Reporting continues as per A.P. (DIR Series) Circular No.78 and the change follows amendment to the FEMA (Borrowing or Lending in Foreign Exchange) Regulations, 2000.

Housing loan repayment by close relatives now permitted, allowing direct payments from Indian bank accounts to the loan account.
Authorises housing loans in rupees to NRIs/PIOs for residential acquisition in India and requires repayments-instalments, interest and charges-by inward remittance, debit to permitted non resident accounts or rental income. The circular liberalises repayment mechanisms by allowing close relatives in India to repay directly from their bank accounts to the borrower's loan account with the authorised dealer or approved housing finance institution.

Line of Credit export financing permits limited agency commission for after sales service with prior RBI approval and specific disbursement deadlines.
A Line of Credit from Exim Bank to Republic Bank, Trinidad and Tobago finances exports of eligible Indian goods and services, subject to specified deadlines for letters of credit and disbursement and mandatory GR/SDF shipment declarations. No agency commission is ordinarily payable, but the Reserve Bank may permit up to 5 per cent commission for exports requiring after sales service; such commission must be paid in the buyer's jurisdiction by deduction from invoice, reimbursement will be 90 per cent of invoice value minus commission, and prior approval is required.

Line of Credit facilitates exports to BOAD member states under FEMA directions, with limited commission rules and deadline controls.
Exim Bank's Line of Credit to BOAD finances export of equipment, goods and services from India to BOAD member states, effective April 1, 2004, subject to specified last dates for opening letters of credit and for disbursement. Shipments must be declared on GR/SDF forms. Agency commission is not normally payable, but Reserve Bank may permit up to five percent for exports requiring after sales service, payable in BOAD member states by invoice deduction; Exim Bank's reimbursable payment to the negotiating bank will be ninety percent of the f.o.b./c&f/c.i.f. value minus commission. Approval for commission must be obtained before shipment.

ESOP acquisition liberalisation: residents may buy and sell foreign ESOP shares subject to repatriation of sale proceeds.
Resident individuals employed by Indian offices or branches of majority foreign owned companies may acquire foreign securities under ESOPs without a concessional price condition, and may sell those shares without prior permission so long as the sale proceeds are repatriated to India; Authorised Dealers must permit remittances for acquisition per the offer and allow repatriation of proceeds, with implementing regulatory amendments to follow under FEMA authority.

Acceptance of NRI deposits restricted to NRO-account debits for non-authorised entities; remittance-origin or NRE/FCNR(B) debits barred.
Non-authorised persons may accept NRI deposits only by debit to NRO accounts provided such amounts are not inward remittances or transfers from NRE/FCNR(B) accounts; deposits from inward remittances or by debit to NRE/FCNR(B) accounts are prohibited. Existing NRI deposits with non-authorised entities may be held and renewed, and interest on those deposits remains repatriable.

Special currency basket revision for deferred payments updates rupee conversion and directs authorised dealers to implement changes.
Revision of the rupee valuation mechanism for payments under the Deferred Payment Protocols with the erstwhile USSR by administrative circular; Authorised Dealers are directed to apply the revised rupee value of the special currency basket from the stated effective date, notify constituents, and implement the change under statutory foreign exchange powers.