Remittance of assets under FEMA is regulated through prescribed limits, documentation, and Reserve Bank approval for exceptional cases.
Remittance of assets outside India is governed by FEMA regulations and Reserve Bank directions to authorised dealers. The directions define remittance of assets and related categories, permit specified remittances by foreign nationals, NRIs and PIOs within prescribed limits and conditions, and set out documentary requirements for companies under liquidation and branch or office closures. Prior Reserve Bank approval is required for remittances above the stated limit, in hardship cases, and for other unlisted remittances. All remittances are subject to applicable taxes in India.

Immovable property acquisition rules impose eligibility, permitted payment channels, reporting and conditional repatriation requirements.
Acquisition and transfer of immovable property under FEMA set out who may acquire or transfer property in India and outside India, with NRIs and OCIs permitted to purchase non agricultural immovable property and receive property by gift or inheritance, subject to payment through specified banking channels, account debits, and reporting. Special rules govern joint acquisitions by non resident spouses, long term visa holders, diplomatic missions, and foreign branches; repatriation of sale proceeds is conditional on prior Reserve Bank permission or compliance with specified remittance facilities, and nationals or entities of certain countries require prior RBI approval.

Establishment of foreign branch and liaison offices in India regulated under FEMA with specified eligibility, approvals and compliance requirements.
The Master Direction consolidates FEMA rules for foreign entities establishing BO/LO/PO in India: eligibility criteria (financial track record, net worth, sectoral restrictions), application procedure via Form FNC to a designated AD Category I bank with Reserve Bank UIN allotment where required, specified validity and extension rules, operational controls on bank accounts and permitted activities, mandatory Annual Activity Certificates with auditor scrutiny, conditions for remittance of profits and project remittances, procedures for transfer of assets and closure, and AD bank obligations on due diligence, reporting and compliance.

Foreign exchange rules for insurance govern issuance, premium remittance and claim settlement across resident and non resident parties.
Consolidated directions regulate issuance, premium collection, claim settlement, reinsurance and overseas accounts for life, general and health insurance under FEMA and IRDAI rules: residents may hold foreign insurer policies subject to RBI/LRS/IRDAI permissions; foreign currency policies and premium collections are permitted in defined situations; claims settlement in foreign currency is allowed under specified documentary and beneficiary conditions; reinsurance and foreign currency accounts for insurers follow board-approved programmes and IRDAI compliance.

Foreign exchange remittance rules govern current account transactions, card use, approvals, and compliance for residents and other persons.
Miscellaneous current account remittance facilities are governed by FEMA, the Current Account Transactions Rules, and RBI directions to authorised dealer banks and authorised persons. The framework covers release of foreign exchange, card usage, surrender and retention of unspent foreign exchange, travel and salary remittances, medical payments for NRI close relatives, and remittances by other persons for gifts, donations, consultancy, pre-incorporation expenses, technical collaboration, trademarks, franchises, and tour arrangements. It also preserves prohibitions on lottery-related remittances, Nepal and Bhutan transactions, and other prohibited current account uses, while requiring declarations, Form A2, document retention, KYC compliance, and tax-law observance.

Liberalised Remittance Scheme limit governs permissible resident remittances abroad with KYC, PAN and documentation requirements.
The Liberalised Remittance Scheme permits resident individuals to remit funds abroad up to the specified annual limit for permitted current and capital account transactions. Authorised Dealers must obtain Form A2, verify PAN and KYC, maintain due diligence and reporting, refuse suspected contraventions, and not extend credit to facilitate capital remittances. Permitted uses include travel, gifts, education, medical treatment, studies, certain overseas investments and loans/gifts to NRI/PIO relatives subject to prescribed conditions. Funds or income from overseas investments must be repatriated and surrendered within the stipulated period unless reinvested.

Indian rupee lending to non-residents is permitted through regulated bank, housing, employer, relative, and overdraft channels.
Authorised dealers may provide INR loans to NRIs for permitted own, business and ESOP purposes, subject to security, prudential requirements, restricted use of proceeds and specified repayment channels. Housing loans to NRIs and PIOs may finance residential accommodation in India where secured and repaid through permitted sources. Indian body corporates may lend to NRI or PIO employees for personal purposes under staff schemes, while resident individuals may make interest-free loans to NRI relatives within Liberalised Remittance Scheme limits. Existing loans may continue following a borrower's change to non-resident status, subject to prescribed repayment conditions.

External Commercial Borrowings (ECB) framework sets routes, eligibility, limits, and reporting requirements for overseas loans.
The Master Direction sets the consolidated ECB framework prescribing three tracks (foreign currency medium term, long term, and Rupee denominated), permitted forms and routes of borrowing, eligibility of borrowers and recognised lenders, minimum average maturities, all in cost ceilings, end use restrictions, hedging obligations, permissible security and guarantee structures, conversion to equity conditions, and comprehensive reporting and procedural requirements including Loan Registration Number and AD Category I delegated powers.

Compounding of FEMA contraventions permits RBI to settle quantifiable foreign exchange breaches upon compliant application and payment.
Compounding under FEMA permits the Reserve Bank to settle quantifiable contraventions on application, exercised by authorised RBI officers and delegated regional offices subject to exclusions for section 3(a), serious misconduct, or ongoing adjudication. Complete prescribed applications with annexures and undertakings must be submitted and the Compounding Authority assesses quantifiability, may call for documents, affords an opportunity of being heard, applies the guidance matrix to determine the payable amount considering factors like unfair gain and repetition, and issues a compounding order specifying contraventions and payment instructions; failure to pay invalidates the application.

Licensed money-changing operations require controlled franchisee wind-down, regulated customer foreign-exchange transactions, audit trails, and comprehensive KYC compliance.
Money-changing business may be undertaken only by persons authorised by the Reserve Bank under the Foreign Exchange Management Act, 1999; carrying on such business without a valid licence attracts penal consequences. No fresh franchisee arrangements may be entered into, and existing arrangements must be gradually discontinued in all cases within two years from May 6, 2026. Franchisees may conduct only restricted money-changing business and remain subject to due diligence, training, reporting, inspection and AML/KYC/CFT compliance. Foreign exchange transactions, customer payments, recordkeeping, reporting, concurrent audits and election-period cash movement are subject to prescribed controls.

Rupee Drawing Arrangements govern inward personal remittances via vostro accounts under strict funding, KYC and monitoring requirements.
Master Direction sets the regulatory framework for Rupee Drawing Arrangements and Rupee/foreign currency vostro accounts of non resident Exchange Houses with AD Category I banks, requiring bank due diligence on Exchange Houses, separate credit only accounts funded by sale of permitted foreign currency or DDA mechanics, prohibition of overdrafts and transfers, specified permissible inward remittance uses, mandated KYC/AML/CFT compliance, and distinct DDA, Non DDA and Speed Remittance procedures with corresponding audit, reporting and collateral regimes.

Government-supported line of credit requires majority Indian content and prescribes shipment declarations, disbursement timelines, and commission rules.
Government-supported Line of Credit finances eligible goods, machinery, equipment and services for a power project, requiring suppliers to source a majority of contract value from India while permitting limited external procurement for non-consultancy items. The agreement fixes effective and disbursement timelines with separate windows for project exports and other supplies. Shipments must be declared on prescribed EDF/SDF forms. Agency commission is not payable under the LOC, though exporters may use their own funds or Exchange Earners' Foreign Currency Account balances for commissions subject to AD Category I bank approval and prevailing remittance instructions. Directions derive from foreign exchange statutory powers.

Line of Credit for project financing requires majority of contract value be sourced from India and EDF/SDF declarations.
Exim Bank's Government of India supported Line of Credit to the Democratic Republic of Congo for a Bandundu Province power distribution project is effective from November 27, 2015. Under the LOC, goods, machinery, equipment and services eligible under India's Foreign Trade Policy must be supplied so that at least 75% of the contract price is sourced from India while the remaining 25% (other than consultancy services) may be procured from outside India. Shipments must be declared on EDF/SDF forms and AD Category I banks shall apply prevailing rules on agency commission remittances.

Line of Credit requires majority sourcing from India and EDF/SDF declaration for export finance compliance.
A Government-supported Line of Credit from Exim Bank to Fiji Sugar Corporation finances eligible exports for sugar industry upgradation, requiring at least 75% of contract value of goods and services to be supplied from India and allowing up to 25% non consultancy inputs from abroad. Shipments must be declared on EDF/SDF forms; no agency commission is payable under the LOC but exporters may use their own funds or EEFC balances to pay commission subject to realisation and AD bank compliance. Directions issued under FEMA.

Cross currency derivatives: exchanges permitted to list EUR USD, GBP USD and USD JPY futures and options, expanding hedging options.
Recognised stock exchanges may offer cross currency futures and options in EUR USD, GBP USD and USD JPY and expand INR based options to EUR INR, GBP INR and JPY INR. Contract types, sizes, quotation and settlement currencies, premium quotation/payments, and INR settlement computation for cross currency contracts using the USD INR Reference Rate and corresponding published exchange rates are prescribed. Market participants, including residents and FPIs, may take positions without establishing underlying exposure subject to existing aggregate position limits and exchange specified limits; AD Category I banks must observe Net Open Position Limits and ensure synthetic USD INR exposures comply with USD INR position limits.

Line of Credit requires majority of contract value sourced from India, EDF/SDF reporting and restricted commission remittances.
A Government of India supported Line of Credit to the Republic of Congo for a cement plant requires at least 75% of contract value for goods and services to be supplied from India, permits up to 25% non consultancy goods procurement from abroad, mandates EDF/SDF shipment declarations, prescribes differing deadlines for L/C opening and disbursement for project versus supply contracts, prohibits agency commission under the LOC while allowing exporter funded commission remittances subject to realization and compliance, and directs AD Category I banks to notify exporters; issued under FEMA directions.

Government supported Line of Credit conditions require minimum Indian supply content and EDF/SDF declaration for export financing.
A Government of India supported Line of Credit from Exim Bank to Tanzania finances eligible exports under India's Foreign Trade Policy for a specified pipeline extension project; at least 75% of contract value for goods and services (excluding consultancy) must originate in India while up to 25% may be sourced abroad. Shipments must be declared on EDF/SDF forms; no agency commission is payable under the LOC though exporters may remit commission from their own resources or EEFC balances after receipt of contract payment, subject to prevailing rules.

External Commercial Borrowings framework reorganised into three tracks with expanded lenders and tightened compliance obligations.
The circular revises the External Commercial Borrowings framework into three tracks differentiated by currency and minimum average maturity, expands eligible overseas lenders, adopts a liberal approach with a limited negative list of end use restrictions, and applies parameters such as maturity and all in cost ceilings in totality. Entities may raise ECBs under an automatic or approval route; borrowers carry primary compliance responsibility, AD Category I banks must ensure adherence, and contraventions attract penal action under foreign exchange law. The framework becomes effective on Gazette notification and includes transitional carve outs and monthly disclosure requirements.

FPI acquisition of defaulted corporate bonds permitted subject to restructured minimum residual maturity and trustee disclosure.
Permits Foreign Portfolio Investors (FPI) to acquire NCDs/bonds in default if restructured through negotiation so the revised residual maturity meets the minimum residual maturity requirement; such acquisitions must be within the overall corporate debt investment ceiling and FPIs must disclose offer terms to Debenture Trustees. Other FPI debt investment conditions remain unchanged.

Advance remittance for aircraft imports permitted where DGCA approval suffices, without requiring separate MoCA approval.
Authorised Dealer Category I banks may permit advance remittance for import of aircrafts, helicopters and related aviation purchases without bank guarantee or an irrevocable standby letter of credit, where the importer has obtained DGCA approval under the extant Foreign Trade Policy for operating scheduled or non-scheduled air transport services; Ministry of Civil Aviation approval is not required. All other conditions of the earlier circular remain unchanged and banks must inform their constituents; directions are issued under FEMA and do not override other statutory permissions.