Import regulation under foreign exchange rules: banks must verify compliance, documentary evidence, and safeguards before permitting remittances.
The Circular consolidates FEMA and RBI directions governing imports, requiring AD Category I banks to ensure compliance with the Foreign Trade Policy, KYC/AML norms and documentary practice when permitting remittances. It prescribes advance remittance safeguards (bank guarantees/standby LCs or waivers for sectoral exceptions), time limits and tenor restrictions for import credits, tiered evidence of import requirements based on remittance value, and reporting, verification and preservation obligations for AD banks, with special rules for precious metals, diamonds, merchanting trade and online payment gateway transactions.

External Commercial Borrowings: consolidated RBI framework sets routes, eligibility, permitted end uses and compliance requirements for overseas borrowings.
Consolidated RBI framework governs resident access to overseas funding via External Commercial Borrowings and Trade Credits under two routes - Automatic and Approval - defining eligible borrowers, recognised lenders, ceilings on amounts and minimum average maturities, all in cost limits, permitted and prohibited end uses, security and guarantee rules, parking of proceeds, prepayment/refinance criteria, reporting (Form 83, ECB 2) and delegated powers to Authorised Dealer Category I banks, with compliance obligations and FEMA enforcement measures.

Overseas Direct Investment rules permit residents to invest abroad under automatic or approval routes with specified reporting and compliance.
Consolidated RBI Master Circular regulates resident direct investments abroad in JVs/WOS under two routes: the Automatic Route (permitted within prescribed ceilings and conditions) and the Approval Route (for other cases). It defines components of total financial commitment, funding methods, valuation and reporting obligations through Form ODI and Unique Identification Numbers, prescribes sectoral restrictions and additional conditions for financial sector investments, permits certain guarantees and charges within limits, and requires designated AD Category I branches to ensure documentation, online reporting, and submission of Annual Performance Reports.

Money changer licensing: Net Owned Funds, KYC/AML controls and RBI approval govern FFMC licences and franchisees.
Consolidates RBI instructions for Authorised Money Changers including licensing and renewal criteria requiring company form, prescribed minimum Net Owned Funds, audited accounts, banker's confidential report, KYC/AML/CFT policies and absence of enforcement/criminal proceedings; selective issuance and RBI finality. Sets pre approval and documentation requirements for additional branches and airport counters. Authorises restricted franchisees subject to minimum NOF and franchiser due diligence, contract terms and reporting. Prescribes operational, reporting, audit, register and inspection obligations, permitted write offs, and ''fit and proper'' governance for directors.

Compounding of contraventions enables voluntary settlement of admitted FEMA breaches upon prescribed procedure and payment.
Compounding under FEMA, 1999 provides a voluntary administrative mechanism by which persons admitting quantifiable contraventions may apply to the Compounding Authority for settlement on payment of a specified sum. The Master Circular consolidates procedures, application formats and supporting annexures, delegates compounding powers among RBI officers and Regional Offices (with certain jurisdictional limits), and prescribes timelines, optional personal hearings, factors for determining the compounding quantum, post-order payment obligations and exclusions including referral of serious or money laundering related matters to enforcement agencies.

Repatriation limits for non-residents govern remittance from NRO/NRE accounts and sale proceeds, subject to tax compliance.
Consolidates FEMA instructions on remittance facilities for NRIs, PIOs and foreign nationals, defining eligibility and bank duties; permits repatriation of current income and sale proceeds from NRO/NRE/FCNR(B) accounts subject to tax compliance, documentary evidence and bank verification; prescribes annual repatriation limits with specified exclusions and RBI permission requirements for certain property proceeds; addresses re-designation of resident accounts, student and salary remittances, mandatory tax undertakings, and issuance of international credit cards to eligible non-residents.

Establishment of foreign liaison, branch and project offices in India requires RBI-authorised application, eligibility, reporting and compliance.
The Master Circular consolidates RBI rules under FEMA 1999 governing foreign entities establishing Liaison, Branch and Project Offices in India: applications via AD Category - I banks in Form FNC, eligibility based on profit track record and minimum net worth, distinct permissible activities by office type, reporting obligations including annual activity certificates and DGP notification, conditions for extensions and closures, general permission criteria for Project Offices and foreign currency accounts, and special restrictions on certain nationalities and property acquisition.

Liberalised Remittance Scheme permits resident individuals to remit abroad for permitted transactions subject to compliance and reporting.
Consolidates RBI instructions under FEMA and the Current Account Transactions Rules, delegating to Authorised Dealers the release of foreign exchange for permitted current and specified capital account transactions, while delineating prohibited transactions and those requiring Government or Reserve Bank approval. It operationalises the Liberalised Remittance Scheme for resident individuals with eligibility, permitted uses, documentation (Form A 2, declaration, PAN), AD reporting obligations, KYC/AML and tax compliance, rules on surrender/redemption of unspent foreign exchange, and procedural safeguards for issuance of guarantees and use of international cards and prepaid instruments.

Foreign exchange risk management: RBI permits specified derivative hedges with eligibility, prudential limits and mandatory reporting.
Master Circular sets a regulatory framework permitting specified foreign exchange derivatives (forwards, cross currency options not involving the rupee, foreign currency INR options, swaps) for defined users and purposes, mandates AD Category I banks as market makers with documentary verification, undertakings and auditor certificates, stipulates eligibility, notional and tenor limits (including ETCD participant caps of USD 15 million for USD INR and aggregate USD 5 million for other pairs), restricts exotic/leveraged products, prescribes prudential position and capital limits, and requires extensive periodic reporting to the Reserve Bank.

Acquisition of Immovable Property: rules for NRIs, PIOs and foreign nationals govern permissible purchases, transfers and repatriation.
Regulation permits NRIs and PIOs to purchase residential and commercial immovable property in India (excluding agricultural land, plantation property and farm houses) with payments made by inward remittance through normal banking channels or by debits to specified non-resident accounts; purchases under general permission need no Reserve Bank filing. Persons resident outside India establishing a branch or office may acquire property necessary for the permitted activity subject to laws and filing Form IPI. Repatriation of sale proceeds is allowed only under prescribed conditions and limits, with inheritance and rupee-funded holdings subject to documentary proof and tax compliance; citizens of certain countries and non-resident foreign nationals face additional restrictions or require prior approval.

Rupee Vostro Account rules impose structured funding, collateral, and KYC/AML controls for inward remittances and permitted payments.
This Master Circular consolidates procedures for opening and maintaining Rupee and foreign currency vostro accounts of non resident Exchange Houses under Rupee Drawing Arrangements and Foreign Currency Drawing Arrangements. It prescribes three operational procedures-DDA, Non DDA and Speed Remittance-specifying funding, auditing/monitoring, lien, float and collateral measures, permissible inward personal remittances and narrowly defined payments, strict KYC/AML/CFT compliance, prohibition of cash disbursements, credit only account operation, and detailed reporting and board review obligations using prescribed annexed formats.

Non-Resident Ordinary Rupee Account rules permit specified rupee credits, limited repatriation and restricted operations subject to tax and documentation.
Consolidated regulatory instructions govern opening, types, joint-holding, permissible credits and debits, repatriation conditions, and operational limits for Non-Resident Ordinary Rupee (NRO) Accounts. Eligible non-residents (NRIs/PIOs) may hold various account forms; credits include inward remittances, India-sourced income and sale proceeds; debits permit local rupee payments and specified remittances abroad subject to tax and documentation. Rules cover visiting foreign nationals, loans/overdrafts against fixed deposits, change of residential status, operations by resident Power of Attorney holders, international card settlement, tax compliance and periodic reporting obligations.

Money transfer regulation: inward personal remittances allowed with authorised agents abiding KYC/AML controls and reporting requirements.
The Master Circular prescribes the regulatory framework for the Money Transfer Service Scheme (MTSS): only inward personal remittances are permitted; Indian Agents must be specified authorised entities meeting minimum net owned funds, documentary and KYC/AML/CFT requirements; Overseas Principals must be licensed, AML compliant and maintain minimum net worth and outreach; collateral is required from Overseas Principals and operational limits and recordkeeping apply; Indian Agents remain fully responsible for Sub Agents and must submit periodic reports and comply with inspections and renewal procedures.

Overseas borrowing permission: AD Category I banks may tap multilateral institutions without prior case by case RBI approval, subject to conditions.
AD Category I banks may borrow from international or multilateral financial institutions without seeking case by case Reserve Bank approval, where such institutions include bodies with multi government shareholding or Government of India participation. Borrowings must be for general banking business and not for capital augmentation, and are subject to the prudential conditions set out in the applicable A.P. (DIR Series) circular and the statutory framework under the Foreign Exchange Management Act.

Line of credit for export finance: government-backed LOC sets sourcing, reporting and remittance compliance for exporters.
Government-supported Line of Credit for procurement of defence vessels requires eligible exports under the Foreign Trade Policy, mandates that at least seventy-five percent of contract value (including consultancy) be supplied from India with limited foreign procurement for non-consultancy goods, prescribes distinct deadlines for opening letters of credit and disbursement depending on contract type, requires declaration of shipments on prescribed export forms, disallows agency commission under the LOC while permitting exporter-funded commission under prevailing remittance rules, and directs authorised dealers to inform exporters and obtain LOC details; directions issued under the foreign exchange management statute.

BEF reporting in XBRL requires online bank wise submission with single-format disclosure of large defaulted import remittances.
Move of BEF reporting to an electronic XBRL platform mandates online, bank wise submission for the half yearly periods ending June and December in a single prescribed format (Annex I) listing remittances for imports that lack supporting evidence after six months from remittance; AD banks must obtain portal credentials via the prescribed fill in form (Annex II).

External Commercial Borrowings for airline working capital extended under existing approval route conditions until end of March next year.
Permission to raise External Commercial Borrowings (ECB) for working capital by airline companies in the civil aviation sector is extended until March 31, 2016 on the same terms and conditions under the approval route; AD Category I banks must inform constituents. The Circular is issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and does not affect any other statutory permissions that may be required.

External Commercial Borrowings extension for affordable housing under approval route; scheme continues with existing terms and bank notification
Continuation of the scheme permitting External Commercial Borrowings (ECB) for low cost affordable housing projects under the approval route, on the same terms and conditions as earlier A.P. (DIR Series) Circulars; Authorised Dealer Category I banks to notify constituents. Directions issued under the Foreign Exchange Management Act and without prejudice to other statutory permissions.

NRI subscription to chit funds permitted on non-repatriation basis subject to Registrar authorization and banking channel rules.
Non-Resident Indians may subscribe to chit funds on a non-repatriation basis provided the Registrar of Chits or an authorised officer permits the chit fund to accept such subscriptions and the subscriptions are brought in through normal banking channels, including accounts in India. The Reserve Bank amended the applicable FEMA regulations to enable this change, and the circular is issued under the Foreign Exchange Management Act without prejudice to other legal permissions.

NRI definition expanded to include OCI/PIO cardholders and NRI investments under Schedule 4 FEMA treated as domestic investments.
The FDI policy now defines 'Non Resident Indian' to include Indian citizens resident abroad and Overseas Citizen of India cardholders, with Persons of Indian Origin cardholders deemed OCI cardholders, and provides that investments by NRIs under Schedule 4 of FEMA will be treated as domestic investment at par with resident investments.