Consolidated FDI Policy sets sectoral caps, automatic and government entry routes, reporting obligations and FEMA enforcement.
Consolidated FDI Policy sets out the legal and procedural framework for Foreign Direct Investment as a capital account transaction under the Foreign Exchange Management Act framework, distinguishing between the Automatic Route and Government Route. It defines eligible investors and instruments, prescribes pricing, timing (180 day allotment rule), KYC, escrow and reporting in prescribed forms (FC GPR, FC TRS, DR returns), and establishes sectoral caps, entry conditions and prohibitions. The Policy aggregates direct and indirect foreign holdings for compliance with sectoral limits, governs downstream investment, and sets FEMA adjudication, compounding and penalty consequences for violations.

FDI reporting: mandatory advance reporting, KYC and FC GPR filings on set timelines; banks must monitor compliance.
Indian companies must file an Advance Reporting Format with the non-resident investor's KYC to the Reserve Bank within 30 days of receiving consideration, issue FDI instruments within 180 days of inward remittance, and file Form FC GPR within 30 days of issue; delays or issuance/refund beyond 180 days without Reserve Bank approval constitute FEMA violations.

Line of Credit for export financing enables Indian exports to PTA Bank member countries with operative dates and commission rules.
Exim Bank provided a Line of Credit to PTA Bank to finance exports of goods and services eligible under India's Foreign Trade Policy to PTA regional members. The agreement is effective from August 25, 2010, with terminal dates for opening Letters of Credit and for disbursements set at 36 and 42 months respectively. Shipments must be declared on GR/SDF forms. Agency commission is ordinarily not payable, but RBI may permit up to 5% for exports requiring after sales service, payable by deduction from the invoice and with the reimbursable amount to the negotiating bank being 90% of the f.o.b./c&f/c.i.f. value minus commission; exporters may otherwise use own or EEFC funds and AD Category I banks must inform exporters.

Line of credit conditions require majority Indian sourced supplies and FEMA governed remittance and declaration rules for exports.
Exim Bank's LOC finances eligible goods, services and consultancy from India for a rail upgrade, requiring at least 85 per cent Indian sourced supplies per contract and permitting up to 15 per cent non Indian procurement for non consultancy items; shipments must be declared on GR/SDF forms, no agency commission is payable under the LOC though exporters may remit commission from own funds or Exchange Earners' Foreign Currency balances after realisation, and AD Category I banks must notify exporters and facilitate compliance under FEMA directions.

Line of credit conditions require majority Indian sourcing and specified disbursement and documentation timelines for project finance.
Exim Bank's Line of Credit finances eligible goods, services and consultancy from India for a Cambodian transmission line project, requiring at least 85% of contract value to be supplied from India and up to 15% procured outside India (excluding consultancy). Letters of Credit and disbursement deadlines are 48 months from project completion for project exports and 72 months from the Credit Agreement execution for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may pay commission from their own resources or EEFC balances subject to AD Category I bank compliance. Directions are issued under FEMA powers.

Line of Credit for export financing mandates majority India-sourced supplies, specified LC timelines, and FEMA compliance.
Exim Bank made a Line of Credit available to Suriname to finance eligible India-sourced goods and services for helicopter purchase, requiring at least 85% of contract value to be supplied from India and permitting up to 15% of non-consultancy inputs from abroad. The Credit is effective from July 28, 2010, with LC/disbursement timelines of 48 months for project exports and 72 months for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission remittances subject to AD Category-I bank approval and prevailing rules. Directions issued under FEMA sections 10(4) and 11(1).

External Commercial Borrowings liberalisation allows hotels, hospitals and software firms to seek larger capital-expense loans under approval route.
Corporates in the hotel, hospital and software sectors may seek External Commercial Borrowings beyond the automatic limit under the Approval Route for foreign currency and/or rupee capital expenditure for permissible end uses; ECB proceeds must not be used for acquisition of land, and all existing ECB norms (eligible borrowers and lenders, end use, all in cost, maturity, prepayment, refinancing and reporting) continue to apply. The modification is effective immediately under FEMA authority.

Buyback of Foreign Currency Convertible Bonds permitted under RBI approval route subject to compliance with prescribed conditions.
Extension of permission for buyback and prepayment of Foreign Currency Convertible Bonds (FCCBs) under the approval route is allowed, provided issuers comply with previously prescribed terms and conditions; eligible applications must be submitted with supporting documents through Authorised Dealer Category I banks to the Reserve Bank of India's Foreign Exchange Department, External Commercial Borrowings Division at the designated central office address.

Annual Activity Certificates deadline extended, permitting later submission together with audited balance sheet in the financial year.
Extension of filing timeline for Annual Activity Certificates (AACs) and audited balance sheets: AACs as at March 31 may be submitted by September 30; if accounts close on a different date, AAC and audited balance sheet must be filed within six months from the balance sheet's due date. Other instructions remain unchanged and Authorised Dealer Category I banks must notify their constituents; directions issued under sections 10(4) and 11(1) of FEMA.

Exchange traded currency options permitted for residents to hedge US Dollar Rupee spot exposure under RBI directions.
Permission is granted to introduce exchange traded currency options on the USD INR spot rate on recognized stock exchanges, limited to standardized premium styled European options with cash settlement in Indian Rupees and maturities up to twelve months, governed by the Reserve Bank's Exchange Traded Currency Options Directions and related amendments to the Foreign Exchange Derivative Regulations.

Take-out finance permitted for refinancing domestic rupee infrastructure loans under ECB approval route, subject to specified conditions.
Permits take-out finance through ECB under the approval route to refinance domestic rupee loans for new infrastructure projects in specified sectors, subject to RBI approval and conditions: a tripartite agreement with a scheduled take-out within three years of scheduled commercial operation date; minimum average maturity of seven years; compliance by domestic banks with prudential norms; fee to overseas lender capped at 100 basis points until take-out; on take-out the residual loan is treated as ECB in a convertible foreign currency and must meet ECB norms; guarantees by domestic banks/FIs and any post take-out obligations on domestic banks are prohibited; prescribed reporting must be followed.

Write-off of export proceeds permits retention of export incentives except Duty Drawback when RBI/AD authorization and Foreign Mission certificate exist.
Authorised Dealer Category-I banks may permit write-off of unrealised export bills without insisting on surrender of export incentives under FTP export promotion schemes, provided RBI or AD banks allow the write-off on merits, the exporter furnishes a Foreign Mission certificate of non-recovery, and the concession excludes self-write-off cases; Duty Drawback remains excluded and its amounts must be recovered.

Special currency basket valuation revised; authorised dealer banks must apply the new rupee conversion under FEMA directions.
The Reserve Bank notified a revision of the Rupee value of the special currency basket applicable to the Deferred Payment Protocols with the erstwhile USSR, fixing a revised Rupee value effective from a specified date for application by Authorised Dealer Category I banks. AD Category I banks are directed to inform their constituents. The directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other statutory permissions or approvals.

Special currency basket value revised, requiring authorised dealer banks to apply the new rupee parity and notify constituents.
The circular revises the rupee parity of the special currency basket under the Deferred Payment Protocols and directs Authorised Dealer Category I banks to apply the revised rupee value effective from a specified date in June 2010 and to notify their constituents; the directions are issued under the Foreign Exchange Management Act and do not affect other statutory permissions or approvals.

Rupee and foreign currency export credit: Base Rate, PCFC, EBR, running accounts, reporting, subvention, gold card
Master Circular consolidates RBI rules on rupee and foreign currency export credit: definitions, pre and post shipment packing credit terms, liquidation, running account conditions, and safeguards against double financing; mandates Base Rate pricing for rupee export credit from 1 July 2010 with prior BPLR ceilings and ECNOS treatment; details PCFC (LIBOR/EURO LIBOR/EURIBOR linked) and EBR schemes with funds sources, spreads, periods, recourse treatment and non eligibility for RBI refinance; prescribes interest subvention pass through, Gold Card privileges, Kimberley Process undertakings for diamonds, customer service standards and quarterly reporting with export credit performance targets.

Immovable property acquisition and transfer by NRIs, PIOs and foreign nationals governed by FEMA permissions and repatriation limits.
NRIs and PIOs may acquire residential or commercial immovable property in India (excluding agricultural land, plantation property and farm houses) and must make payments by inward remittance through normal banking channels or by debit to NRE/FCNR(B)/NRO accounts; repatriation of sale proceeds by persons resident outside India is allowed up to the foreign exchange or FCNR/NRE amount originally paid (subject to tax clearance and documentary proof) with residential property repatriation restricted to not more than two properties and remittances from rupee funds/inheritance capped at US$1,000,000 per financial year without prior Reserve Bank permission.

Foreign exchange risk hedging rules permit forwards, OTC derivatives and commodity/freight hedges under specified conditions and reporting.
Residents and AD Category I banks may enter into forward contracts and OTC derivatives to hedge bona fide foreign exchange exposures subject to documentary verification or approved past performance/self declaration routes, limits tying notional and tenor to underlying exposures, special provisions for SMEs, individuals and FIIs, prohibitions on leveraged swap structures and net premium receipts, and extensive reporting and risk management, capital and approval conditions for options, currency futures and commodity/freight hedging.

Foreign investment rules define entry routes, sectoral caps and compliance processes for non-resident capital inflows.
Foreign investment in India is governed by FEMA and Reserve Bank notifications, distinguishing Foreign Direct Investment and portfolio flows through Automatic and Government Routes. It prescribes eligible instruments, sectoral ceilings and prohibited activities, investor-class specific limits (FIIs, FVCIs, NRIs), and mandatory documentation, valuation and reporting (Advance Reporting Form, FC-GPR, FC-TRS, LEC returns). Transfers between residents and non-residents, conversion of ECB/royalty to equity, ADR/GDR/IDR mechanisms, and compliance timelines are regulated, with Reserve Bank and Government approvals required in specified cases.

Money changing activities: RBI master circular sets licensing, operational rules, KYC/AML/CFT and reporting obligations.
Master Circular consolidates RBI instructions governing money changing activities, prescribing entry norms, documentation and minimum Net Owned Funds for FFMC licences, selective issuance and renewal procedures, Empowered Committee clearance, and fit and proper criteria. It mandates operational rules on purchase/sale of foreign currency, cash limits, reconversion, maintenance of foreign currency balances, prescribed registers and reporting (monthly/quarterly/annual) to the Reserve Bank, concurrent audit and on site inspections. A detailed KYC/AML/CFT framework requires risk based customer due diligence, record retention, appointment of a Principal Officer, and CTR/STR reporting to FIU IND.

Establishment of foreign liaison, branch and project offices in India: eligibility, permitted activities, approvals, reporting and closure requirements.
Foreign entities proposing Liaison Office, Branch Office or Project Office in India must apply in Form FNC via a designated AD Category I bank to the Reserve Bank under Reserve Bank or Government routes; eligibility requires specified profit track record and minimum net worth or a Letter of Comfort from an eligible parent. The Circular prescribes permissible activities and prohibitions for each office type, issuance of a Unique Identification Number, PAN requirement, annual Chartered Accountant activity certificates, procedures for extension, operation of foreign currency/INR accounts for project and branch operations, and detailed closure and remittance documentation requirements.