FPI investment limits in government securities expanded under a phased rupee denominated framework, with maturity and security caps.
A phased rupee denominated Medium Term Framework increases aggregate FPI limits in Central Government securities and establishes a separate phased limit for SDLs, while preserving the requirement that FPIs invest only in securities with a minimum residual maturity of three years. Aggregate FPI holdings in any Central Government security are capped at 20%; securities exceeding that threshold will be placed on a negative investment list and barred from fresh FPI purchases until holdings decline. Operational monitoring is day end based and further guidelines will be issued by the securities regulator.

FDI in White Label ATM Operations: full foreign ownership under automatic route, subject to net worth requirement and RBI conditions.
Permits 100% FDI in White Labelled ATM Operations under the automatic route, subject to a minimum net worth of Rs. 100 crore to be maintained at all times, compliance with NBFC minimum capitalization norms where the entity carries out other NBFC activities, and adherence to RBI criteria and guidelines issued by the specified RBI circular; decision effective immediately.

Regularisation of undisclosed foreign assets prevents FEMA proceedings where Black Money Act taxes and penalties are paid.
Where a resident declarant has declared assets under the Black Money Act and paid the prescribed taxes and penalties, no proceedings shall lie under FEMA in respect of those declared assets and no FEMA permission is required to dispose of the asset and repatriate proceeds through banking channels within one hundred and eighty days from the date of declaration. If the declarant seeks to continue holding the asset, an application for RBI permission may be made within that period and will be decided under extant regulations; refusal requires disposal and repatriation within one hundred and eighty days or any RBI-permitted extension.

Rupee denominated bonds overseas: corporates may issue under ECB rules subject to eligibility, maturity, end use and reporting conditions.
Issuance of Rupee denominated bonds overseas is authorised under the ECB framework for corporates and specified investment trusts with investors from FATF compliant jurisdictions. Bonds must be plain vanilla instruments placed privately or listed abroad; Indian banks may arrange or underwrite but not subscribe. A minimum maturity requirement and market based all in cost standard apply. Proceeds are usable broadly except for a specified negative list of end uses. Transactions must comply with existing ECB reporting, registration and prudential requirements, and larger issues need prior central bank approval.

Cross-border payment facilitation via online gateways permitted with bank due diligence and segregated collection accounts ensuring compliance and fund sweep.
AD Category-I banks may enter standing arrangements with OPGSPs to process import and export payments subject to due diligence, separate Export and Import Collection accounts, appropriate purpose codes, reporting to the Reserve Bank, quarterly reconciliation and audit, and adherence by foreign OPGSPs to liaison office approval, IT law compliance, dispute resolution, refund reserves and seller onboarding procedures. Import and export collections are limited to prescribed transaction values with specified permitted credits and debits; NOSTRO collection accounts must be used for exports and funds swept into Indian export collection accounts and exporter accounts within prescribed timelines.

Foreign currency accounts by ship-manning agencies: permitted in India with restricted credits, no credit facilities, and limited duration.
Ship manning and crew management agencies rendering services to overseas shipping or airline companies may open non interest bearing foreign currency accounts with AD Category I banks in India; credits limited to freight/passage collections or inward remittances from the overseas principal, debits limited to local ship/crew management expenses, no credit facilities against account balances, no EEFC facility, banks to meet reserve requirements, and accounts allowed only during the agreement's validity.

Industrial license validity revised to extended term; applies to existing and future licences, expired require fresh application.
The amendment revises the initial validity of industrial licences for the defence sector to 15 years, further extendable up to 18 years, applying to existing and future licences; licences that have already expired require a fresh application.

Export credit line requires majority Indian-sourced supplies and EDF/SDF reporting, with limited foreign procurement permitted.
A Government-supported Line of Credit administered by the Export-Import Bank finances specified power-sector contracts in Nicaragua subject to a requirement that at least 75% of contract value for goods and services (including consultancy) be supplied from India and up to 25% of goods and services may be procured abroad; shipments must be declared on EDF/SDF forms, disbursements and LC openings are bound by contract completion or a fixed outer date, and no agency commission is payable under the LOC though exporters may use own funds or EEFC balances for commission subject to remittance rules.

Partly paid shares and warrants allowed as eligible capital instruments under FDI policy; issuance subject to RBI terms.
The FDI policy now treats capital as including equity shares (which may be partly paid), fully, compulsorily and mandatorily convertible preference shares and debentures, and warrants; preference shares and convertible debentures must be fully paid and mandatorily convertible, and 'warrant' includes share warrants. An Indian company may issue warrants and partly paid shares to non residents subject to terms and conditions prescribed by the Reserve Bank of India.

Facility sharing arrangements allowed under FDI policy if arm's length pricing and lease income remains proportionally low.
Facility sharing agreements between group companies through leasing/sub leasing arrangements for business purposes will not be treated as real estate business under the Consolidated FDI Policy provided such arrangements are at arm's length in accordance with applicable tax pricing standards and annual lease rent earned by the lessor company does not exceed a small proportion of its total revenue.

Rupee denominated trade credit authorized with specified tenors and bank safeguards for import finance.
Notification permits resident importers to raise Rupee (INR) denominated trade credit from overseas lenders under a loan agreement for imports (except gold). Tenors: non capital goods up to one year from shipment or the operating cycle, capital goods up to five years; no roll overs beyond permitted periods. AD Category - I banks may approve trade credit subject to a per transaction ceiling of USD 20 million equivalent, may provide guarantees/LOUs/letters of comfort for up to three years, and must ensure all in costs are market commensurate. Overseas lenders may hedge Rupee exposure in the on shore market through permitted derivatives; hedging guidelines to follow.

Authorisation for Additional Branches: simplified document requirements allow declarations in lieu of several prior submissions.
Applicants for authorisation of additional FFMC/AD Cat. II branches may submit a proprietor/partner/director/CFO certificate on Net Owned Funds instead of audited-account certificates; confidential banker reports are dispensed with; declarations about pending enforcement proceedings remain required; KYC/AML/CFT policy and internal control write-ups need only be refiled if changed, otherwise a declaration of no change suffices. The revisions take effect immediately and are issued under foreign exchange regulatory powers without prejudice to other legal permissions.

EEFC account reporting requirement dispensed; banks need not file quarterly loan statements but must observe other approvals.
Authorized Dealer Category I banks are no longer required to submit quarterly statements for loans and advances from Exchange Earners' Foreign Currency (EEFC) accounts; this procedural reporting requirement is dispensed with immediately, while the directions are issued under statutory foreign exchange powers and remain without prejudice to permissions or approvals required under other laws.

Special Currency Basket revision: AD Category I banks must apply the revised rupee valuation under FEMA directions.
The circular notifies Authorised Dealer Category I banks of a revision to the Rupee value of the Special Currency Basket under the Deferred Payment Protocols, specifies the new rupee value and its effective date, directs banks to inform their constituents, and states that the directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other statutory permissions.

Foreign direct investment reporting enabled online on the e Biz platform; banks to verify FCTRS filings for UIN processing.
Foreign direct investment reporting via FCTRS is enabled on the e-Biz portal: residents download, digitally sign and upload returns; Authorised Dealer Category I banks must download, verify, request further information if needed, and upload verified forms for RBI processing and allotment of the Unique Identification Number. The online facility is supplementary to existing manual reporting and requires AD access to the e-Biz portal through NIC provided VPN accounts.

Line of credit requires a substantial portion of contract value to be sourced from India and EDF/SDF declarations.
Exim Bank's Government of India supported Line of Credit to Myanma Foreign Trade Bank finances an Indian eligible export contract for a microwave radio link, requiring a substantial portion of contract value to be supplied from India while remaining goods and services (other than consultancy) may be procured abroad. The agreement is effective from July 27, 2015; shipment declarations must be made on EDF/SDF forms. No agency commission is payable under the LOC, although exporters may remit commission from their own funds or EEFC balances after full payment, subject to AD Category I bank compliance with prevailing rules.

Line of Credit conditions require predominant Indian supply content and EDF/SDF shipment declarations, with restricted commission rules.
Government-supported Line of Credit finances a veterinary pharmaceutical plant with a requirement that at least 75% of contract value for goods and services, including consultancy, be supplied from India and up to 25% of non-consultancy goods may be procured externally. Disbursement windows differ for project exports and other supply contracts; shipments must be declared on EDF/SDF forms. No agency commission under the LOC, though exporters may use own funds or EEFC balances for commission subject to realization and remittance rules. AD Category I banks must notify exporters; Directions issued under FEMA.

Composite foreign investment caps aggregate all foreign holdings and count equity from debt conversions within sectoral limits.
A composite cap aggregates all types of foreign investment-direct and indirect-under the sectoral/statutory ceiling, including holdings across FEMA schedules; FCCBs and DRs constituting debt are excluded, but any equity arising from conversion of debt is counted as foreign investment. Total foreign investment in an entity shall not exceed the sectoral cap, portfolio investments remain subject to specified limits and procedural approvals, and the investee company bears responsibility for compliance. These amendments are effective immediately and read with the Consolidated FDI Policy Circular of 2015.

FPI maturity rule: SRs by ARCs exempt from residual maturity restriction, subject to overall corporate debt limits.
The minimum residual maturity restriction for FPI investment in corporate bonds does not apply to security receipts issued by Asset Reconstruction Companies; such investments must, however, remain within the overall corporate debt limit. All other conditions for FPI debt-market investment remain unchanged, the clarification is effective immediately, and further operational guidelines may be issued by the securities regulator.

Export factoring on non-recourse basis permitted for banks, subject to due diligence, invoice notation and reporting.
Authorised Dealer Category I banks may provide export factoring on a non recourse basis subject to conditions: ensure genuine invoices and no over financing by determining working capital against factored invoice values; remit net realisations to financing banks if not financing; complete KYC and due diligence; arrange for Import Factor credit evaluation and collection or obtain correspondent bank credit evaluation in single factor cases; annotate invoices directing payment to the Import Factor; close factored export bills and report them in EDPMS.