Settlement in INR permitted for specified trade financing with Sri Lanka under FEMA authorisation, outside ACU mechanism.
RBI permits settlement in INR outside the ACU mechanism for trade transactions arising from the Government guaranteed credit facility to Sri Lanka; financing is limited to exports eligible under the Foreign Trade Policy and agreed to be financed under the credit agreement, effective immediately, with AD Category I banks required to notify constituents and obtain full facility details, and the directions issued under FEMA subject to other legal permissions.

Government-supported Line of Credit enabling export financing with specified Indian content and compliance obligations for infrastructure projects.
Government-supported Line of Credit to SBM (Mauritius) Infrastructure Development Company Ltd permits financing of eligible exports from India for infrastructure projects, mandates that at least 75% of contract value be supplied from India (30% Indian content for the Metro Express Project), allows 25% foreign procurement, requires Export Declaration Form filing for shipments, disallows agency commission from the LoC while permitting exporter-paid commissions subject to realisation, and directs Authorised Dealer Category I banks to notify exporters and facilitate compliance; directions issued under the Foreign Exchange Management Act.

FPI investment limits: sectoral caps retained for government, state and corporate debt; CDS notional sale restricted.
FPI investment ceilings for FY 2022-23 keep existing caps of 6% for Government securities, 2% for SDLs and 15% for corporate bonds, retain the Fully Accessible Route for specified securities, allocate G sec increments 50:50 between General and Long term sub categories and add the full SDL increment to General SDLs; revised absolute limits for the two half year tranches are published. An aggregate cap on the notional amount of CDS sold by FPIs is fixed at 5% of outstanding corporate bonds with an additional notional limit allocated for FY 2022 23.

FCRA registration validity extension: provisional continuance until renewal disposal, refusal causes registration to be deemed expired.
The Government provisionally extends FCRA registration validity for entities with pending renewal applications until 30.06.2022 or disposal of the renewal application, and extends validity for entities whose five year term expires during 01.04.2022-30.06.2022 if they applied for renewal before expiry, subject to the same cut off; if renewal is refused the certificate is deemed to have expired on the date of refusal and the association cannot receive or utilise foreign contribution.

Foreign investment in LIC permitted via automatic route subject to statutory compliance and governance conditions.
The FDI Policy amendments permit foreign investment in the Life Insurance Corporation of India via the automatic route subject to specified statutory compliance and governance conditions; amend core definitions of Capital, Convertible Note, Foreign Investment, Indian Company, Share Based Employee Benefits and Subsidiary; clarify Real Estate Business exclusions; bifurcate "Other Conditions" into insurer/intermediary and LIC specific provisions including resident Indian majorities in board and key management, regulatory verification, pricing guidance for increases, and ESOP/share benefit reporting and approval requirements.

Line of Credit for export finance limits foreign sourcing, mandates domestic supply thresholds and sets strict utilization timelines.
Government-supported Line of Credit by Export-Import Bank finances purchases of eligible exports from India, requiring at least 75 per cent of contract value to be supplied from India and allowing up to 25 per cent procurement from abroad; terminal utilization is six months from signing, extendable but not beyond twelve months. Shipments must be declared in the Export Declaration Form, no agency commission is payable under the LoC (exporters may pay commission from own resources or EEFC balances subject to realization), and AD Category I banks must inform exporters and obtain LoC details. Directions issued under FEMA without prejudice to other approvals.

Government-backed line of credit enables export-financed supply of solar home systems subject to 75% domestic sourcing and EDF reporting.
Exim Bank's Government-supported Line of Credit to Guyana finances procurement and installation of 30,000 solar home systems, requiring at least 75 percent of goods, works and services to be supplied from India and permitting up to 25 percent procurement from outside India. The agreement is effective from February 14, 2022, with a terminal utilization period of 60 months; shipments must be declared in the Export Declaration Form. No agency commission is payable under the LoC, though exporters may pay commission from their own resources or EEFC balances after realization, subject to existing instructions.

Online filing of regulatory returns promoted; selected paper and email returns to be converted to electronic submission.
Interim implementation of RRA 2.0 recommends discontinuation, merger or conversion to online filing of specified external sector returns, including those related to foreign investment flows, MTSS reporting, merchanting trade transactions, NRO remittances, agent listings, foreign currency account and write off statements, payment gateway arrangements, diamond import remittances, ESOP repurchases, foreign currency transactions, branch/office lists, long term advance reporting and external commercial borrowing applications; exact effective dates will be notified later and authorised persons/AD banks are to prepare for electronic submission.

Line of Credit for export finance imposes Indian supply-content requirements and Export Declaration Form compliance.
Government-supported Line of Credit by Export-Import Bank finances eligible exports for a Maldives sports infrastructure project subject to Foreign Trade Policy eligibility, declaration in the Export Declaration Form, and a supply-content requirement of at least seventy-five percent from India with up to twenty-five percent procurable outside India. No agency commission is payable under the LoC; exporters may use own funds or Exchange Earners' Foreign Currency balances to pay commission in free foreign exchange after realisation and subject to extant instructions.

Government-supported line of credit for defence export financing conditions supply origin and export compliance under foreign trade rules.
A Government of India supported Line of Credit through Exim Bank finances exports for defence projects where exports must be eligible under the Foreign Trade Policy, shipments declared in the Export Declaration Form, and at least seventy-five per cent of contract value supplied from India with up to twenty-five per cent procurable externally; no agency commission is payable though exporters may use own or EEFC funds for commission subject to AD Category I bank compliance and realization requirements, and directions are issued under FEMA.

Credit Default Swap limits restrict foreign portfolio investors from selling protection once aggregate cap is reached.
FPIs may buy and sell CDS as non-retail users under Credit Derivatives Directions, but selling protection is subject to an aggregate limit equal to 5% of outstanding corporate bonds monitored by CCIL; FPIs must stop selling once the limit is used and the limit is released on exit. Debt instruments received or purchased in physical settlement count toward corporate bond investment limits and, if limits are unavailable at settlement, will be adjusted in subsequent reviews. Notional amounts and deliverable debt instruments are exempt from minimum residual maturity, short-term, concentration, and single/group investor-wise limits. Directions effective May 09, 2022.

Voluntary Retention Route enables FPIs to access Indian debt with voluntary multi year retention commitments and relaxed limits.
The Reserve Bank expanded the Voluntary Retention Route (VRR) for SEBI registered FPIs, making VRR allocations additional to General Investment Limits across VRR Govt, VRR Corp and VRR Combined. FPIs commit a Committed Portfolio Size (CPS) and a minimum Retention Period (minimum three years), must maintain at least 75% of CPS on an end of day basis, may reinvest income beyond CPS, and may transfer General Investment Limit holdings into VRR. Allocations occur on tap or by auction (bids of amount and retention period), with descending retention period priority and margin allocation rules. Custodians must enforce compliance and report violations to SEBI.