Margin lending to FPIs permitted for government securities settlement, subject to banks' credit risk frameworks.
Banks in India holding an Authorised Dealer Category 1 licence may lend to Foreign Portfolio Investors to enable placement of margins with the central counterparty for settlement of government securities (including Treasury Bills and State Development Loans) transacted outside recognised exchanges; such lending must follow the banks' credit risk management frameworks and the change is effected by amendments to the foreign exchange regulatory framework, effective immediately.

FPI investment limits in government securities maintained; allocation equally between general and long-term with revised absolute caps announced.
FPI investment ceilings remain at six percent for government securities and two percent for State Development Loans for FY 2021-22; specified securities investments continue to be reckoned under the Fully Accessible Route. Incremental G Sec increases are allocated equally between General and Long term sub categories, while SDL incremental increases are fully allocated to the General SDL sub category. Revised absolute limits for half year periods across G Sec (General and Long term), SDL (General and Long term), corporate bonds and total debt are announced. AD Category I banks are directed to inform constituents; directions are issued under sections 10(4) and 11(1) of FEMA, 1999.

Designated FCRA Account requirement limits receipt of foreign contribution to the specified New Delhi SBI branch after transition.
Existing registered or prior permission recipients must open and use the designated FCRA Account at the New Delhi Main Branch of the State Bank of India; upon opening that account or from the applicable cut off date, receipt of foreign contribution in any other account is prohibited. The Ministry of Home Affairs extended the period for making this change to facilitate transition due to COVID 19 exigencies.

FCRA registration validity extension preserves continuity of certificates during transition to the amended regime.
The Central Government, invoking its statutory extension powers in view of COVID-19 and to facilitate transition to the amended FCRA regime, directed that registration certificates under the Foreign Contribution (Regulation) Act which expired or were due to expire within the covered transition window shall remain valid until the stated terminal date, and issued a public notice advising affected entities to take appropriate action.

Sponsor contribution treated as Overseas Direct Investment, permitting overseas AIF setup under automatic route with regulatory compliance.
Sponsor contributions by an Indian Party to an Alternative Investment Fund established in an overseas jurisdiction, including in an International Financial Services Centre, are to be treated as Overseas Direct Investment and may be undertaken under the automatic route provided the sponsor complies with Regulation 7 of the relevant FEMA notification; other provisions of the notification remain unchanged and the Master Direction will be updated accordingly.

Line of credit support enables project-tied exports subject to export eligibility, sourcing and FEMA compliance.
State-supported Line of Credit of USD 7.35 million finances export of eligible goods and services for a hospital project in Nicaragua, requiring at least 75 per cent of contract value to be supplied from India and allowing up to 25 per cent procurement from outside India. The Agreement is effective from April 16, 2021 with a terminal utilisation period of 60 months after scheduled completion, shipments to be declared in the Export Declaration Form, and no agency commission payable under the LoC except from exporter's own resources or EEFC balances subject to AD Category I bank compliance and FEMA directions.

Line of Credit support for export financing with Indian sourcing requirement and post completion utilization period.
Government-supported Line of Credit by Export-Import Bank finances exports to Mozambique subject to Foreign Trade Policy; at least 75 per cent of contract value must be supplied from India, up to 25 per cent may be procured abroad. The LoC is effective from April 09, 2021 with a terminal utilization period of sixty months after scheduled project completion. Shipments must be declared in the Export Declaration Form. No agency commission is payable under the LoC; exporters may use their own funds or EEFC balances for commission and AD Category I banks may permit remittance after full realisation, subject to prevailing instructions. AD Category I banks must notify exporters and refer to Exim Bank for details.

Parking of unutilised ECB proceeds extended as one time relief, permitting term deposit parking until March 2022.
Unutilised ECB proceeds drawn down on or before March 1, 2020 may be parked in term deposits with Authorized Dealer Category I banks for an additional period up to March 1, 2022 as a one time relaxation; all other ECB provisions remain unchanged and AD Category I banks must notify their constituents, with the Master Direction to be updated accordingly.

FPI investment limits reaffirmed for corporate bonds and interim treatment for government securities pending revised limits.
The Reserve Bank confirmed FPI investment rules for FY 2021 22: the corporate bond cap remains at 15% of outstanding stock and rounded revised corporate bond ceilings for the year are provided. Revised limits for Central Government securities and State Development Loans will be advised separately and, until then, existing G Sec and SDL ceilings continue to apply. Authorized Dealer Category I banks must inform their constituents. Directions are issued under the Foreign Exchange Management Act, 1999.

FETERS Cards reporting requires banks to submit detailed international card and UPI transaction data to the RBI portal.
Mandatory submission by Category I Authorised Dealer banks of FETERS-Cards returns on the RBI web portal detailing international credit/debit card and UPI transactions with MCC, country, currency, amount (payment/refund) and transaction modality (card present/not present; QR code scan). Reporting covers forex sales by card issuing ADs and forex purchases by merchant acquirer ADs across PoS, e commerce and account transfers, to be submitted within seven working days of month end, effective for transactions from April 1, 2021, under Sections 10(4) and 11(2) of the Foreign Exchange Management Act, 1999.

Non-repatriation investments by NRIs treated as domestic, excluded from indirect foreign investment computation under FDI rules.
Investments by Indian companies owned and controlled by NRIs made on a non-repatriation basis are treated as domestic investments at par with resident investments and shall not be considered in the calculation of indirect foreign investment for downstream investment purposes under the consolidated FDI Policy.

FPI investment in defaulted bonds exempted from short-term limits and minimum residual maturity requirements under RBI directions.
FPIs are permitted to acquire NCDs/bonds under default in repayment of principal and such investments are exempted from the minimum residual maturity requirement, the short-term investment limit, and the investor limit applicable to FPI investment in corporate debt; this aligns their treatment with existing exemptions for security receipts, ARCs and approved CIRP resolution-plan instruments.

Remittances to IFSCs under the Liberalised Remittance Scheme now permitted for IFSC securities investment, subject to compliance.
Resident individuals are permitted to remit under the Liberalised Remittance Scheme (LRS) to make investments in securities within International Financial Services Centres (IFSCs) in India via AD Category I banks; investments must be in securities of IFSC entities only. Individuals may open non interest bearing Foreign Currency Accounts in IFSCs for such investments, subject to prompt repatriation of idle funds to domestic INR accounts and prohibition on using FCAs for domestic transactions. AD Category I banks must ensure compliance with LRS terms, reporting requirements and FEMA regulations, with contraventions addressed under RBI compounding rules.

Margin for Derivative Contracts: AD Category I banks may post and collect specified margins for cross border derivatives.
Authorised Dealer Category I banks may post and collect margin for permitted derivative contracts with non residents: in India in Indian currency, freely convertible foreign currency, government debt securities, and listed AAA rated rupee bonds; outside India in freely convertible foreign currency and sovereign debt securities with specified high credit ratings (lowest rating to be reckoned where multiple ratings exist). Banks may conduct such activity on own account or for customers, receive and pay interest on margin, and must maintain a separate account in the name of persons resident outside India for cash margin in India.

Government-supported Line of Credit enables export financing for a Maldives connectivity project, subject to Indian content and FEMA compliance.
A Government of India-supported Exim Bank Line of Credit finances exports for the Greater Male Connectivity project in Maldives, conditioned on Foreign Trade Policy eligibility and requiring that at least 75 percent of the contract price be supplied from India with up to 25 percent procured outside India. Shipments must be declared in the Export Declaration Form. No agency commission is payable under the LoC, though exporters may use their own funds or EEFC balances for commission remittances after full realization, subject to AD Category I bank compliance and existing instructions.

FCRA registration validity extension preserves expiring certificates during the amendment transition, keeping them valid through the designated extension period.
The Ministry of Home Affairs, invoking executive authority under the Act, extends the validity of FCRA registration certificates that would expire during the transitional period following the amendment notified on 29 September 2020, so that such certificates remain valid until 31 May 2021 to ensure a smooth transition to the amended regime; stakeholders are advised to take appropriate action.