Foreign investment approval threshold raised, shifting larger proposals from board review to cabinet-level consideration under revised FDI guidelines.
Revision increases the investment threshold determining which foreign equity proposals require Cabinet-level consideration; the Minister of Finance (in charge of FIPB) will consider FIPB recommendations up to the revised threshold, and recommendations above it are to be placed for consideration by the Cabinet Committee on Economic Affairs, with the FIPB Secretariat processing recommendations to obtain Minister of Finance and CCEA approvals.

Liberalised Remittance Scheme limit increased to expand permitted current and capital account remittances under compliance safeguards.
The Liberalised Remittance Scheme for resident individuals is revised so authorised dealers may permit remittances up to USD 250,000 per financial year for any permitted current or capital account transaction or a combination thereof, subsuming current account facilities under this overall limit while allowing exceptions for emigration, medical treatment and studies where higher amounts are required. Remitters must submit an application-cum-declaration; authorised persons must apply KYC and AML measures; banks must not extend facilities to facilitate capital remittances; remittances to FATF non-cooperative jurisdictions are prohibited.

Special Currency Basket valuation revised; authorised banks must apply the new rupee value and notify constituents promptly.
The Reserve Bank fixed a revised rupee value for the Special Currency Basket, superseding the prior notified value, to be applied from the circular's effective date for transactions under the Deferred Payment Protocols with the erstwhile USSR; Authorised Dealer Category I banks must apply the revised valuation and notify their constituents, with directions issued under FEMA without prejudice to other legal permissions.

Line of Credit local sourcing requirement: exporters must supply majority of contract value from India; EDF/SDF declarations required.
Notification of a government backed Line of Credit by Exim Bank for a Mali power transmission project sets sourcing rules requiring at least 75% of goods and services (excluding consultancy) to be supplied from India, prescribes EDF/SDF shipment declarations, disbursement and letter of credit cut off timelines, and disallows agency commission under the LOC while permitting exporters to use own funds or EEFC balances for commission subject to AD Category I bank realization and prevailing instructions; directions issued under sections 10(4) and 11(1) of FEMA.

ECB in Indian Rupees mobilisation via back-to-back swaps enables overseas lenders to fund INR loans; AD banks must verify documentation.
Recognised non-resident lenders may extend INR denominated ECBs by mobilising INR through a swap: the lender approaches an overseas bank which enters a back to back swap with an AD Category I bank in India. AD banks must obtain documentation (scanned acceptable) to verify the underlying INR ECB, take a one time KYC certification on the end client, retain records for RBI verification, ensure the swap continues only while the underlying ECB exists, and permit maturity settlement via the overseas bank's vostro account.

Rupee Drawing Arrangement: increased trade remittance cap and conditional regularisation subject to enhanced KYC and FATF compliance.
The circular increases the per transaction trade remittance limit under the Rupee Drawing Arrangement and permits Authorised Dealer Category I banks to regularise payments exceeding the prescribed limit if satisfied of the transaction's bonafides. Regularisation is subject to conditions: remittances must be from FATF compliant countries, banks must complete KYC/AML/CFT and other due diligence, review and report frequent high value senders, obtain additional information from correspondents, retain records for scrutiny, and ensure export proceeds received through RDA are applied to outstanding export finance with an exporter declaration.

Special currency basket valuation revised, requiring AD Category I banks to notify constituents and comply with FEMA directions.
The Reserve Bank revised the rupee valuation of the Special Currency Basket under the Deferred Payment Protocols, fixed with effect from April 30, 2015, and directed Authorised Dealer Category I banks to note and communicate the change to their constituents; directions are issued under the Foreign Exchange Management Act, 1999, without prejudice to other legal permissions.

Remittance of FCNR(B) funds: A2 form and physical presence are not required; banks should use technology to verify transactions.
A2 form filing is not required for remittance of funds from closure of FCNR (B) deposits because A2 applies to purchase of foreign exchange using rupee funds. Banks must not insist on the account holder's physical presence and should use technological alternatives to verify bonafides and ensure hassle free remittance. Authorised Dealer Category I banks must notify their constituents. Directions issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other legal permissions.

Export declaration requirement waived for EDI port shipments; Shipping Bill now deemed to satisfy export declaration obligations.
The requirement to file the Shipping Bill Declaration Form (SDF) for exports of goods or software is dispensed with where exports take place through EDI ports, because the statutory particulars of the SDF are subsumed in the Shipping Bill format; Authorised Dealers must notify constituents and the directions are issued under the regulator's statutory powers without prejudice to other permissions.

Line of Credit for infrastructure financing requires majority Indian supplies and prescribed export documentation under FEMA directions.
The Export-Import Bank's LOC for Nepal finances specified infrastructure projects on condition that eligible Indian exports supply at least 75% of contract value (50% for civil works), shipments be declared on prescribed export forms, and no agency commission is payable under the LOC though exporters may use own funds or EEFC balances for commission remittances subject to AD Category-I bank approval after realisation; directions issued under FEMA remain subject to other legal permissions.

Consolidated FDI Policy: rules for entry routes, sectoral caps, permitted instruments, reporting, and approval requirements for foreign investors into Indian companies.
The Consolidated FDI Policy sets the operative framework for foreign direct investment into Indian entities: definitions of FDI and investor classes; permitted investee entities and instruments; timelines, pricing/valuation and filing obligations for issue and transfer of securities; conditions for conversion of certain liabilities into equity; methodologies to compute direct and indirect foreign investment; entry routes via the Automatic or Government Route with sectoral caps and security/clearance conditions; FIPB composition and approval thresholds; prohibited sectors; and remittance, reporting and compliance requirements administered by RBI and Government.

Merchanting trade classification clarified: consignments to Nepal and Bhutan may qualify as traffic in transit if treaty compliant.
Goods acquired for merchanting trade must not enter the Domestic Tariff Area or be transformed, must be permitted under the prevailing Foreign Trade Policy, and must comply with export leg and import leg regulatory requirements (excluding Export Declaration Form and Bill of Entry). Where such goods are consigned to importers in Nepal and Bhutan from third countries through India under Customs Transit Declarations, they will qualify as traffic in transit if compliant with the India Nepal and Indo Bhutan Treaties of Transit.

Special Currency Basket valuation revised; authorised dealer banks directed to apply updated rupee value and notify constituents.
AD Category I banks are directed to adopt the revised rupee valuation of the Special Currency Basket with effect from the stated effective date and to notify their constituents; the instructions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and are without prejudice to other statutory permissions or approvals.

Industrial license validity revised: initial term extended, with a further extension available for defence sector.
The initial validity period for Industrial Licenses in the Defence Sector is revised to seven years, with a further extension of up to three years available for both existing and future licences, altering the previous shorter initial term and cumulative extension framework to streamline grant and renewal procedures.

Foreign investment in pension sector permitted; lower-tier stakes via automatic route, higher stakes require government approval and PFRDA registration
Foreign investment in the pension sector is allowed up to a combined ceiling of forty-nine percent with an automatic route for lower-tier stakes and a government route for higher-tier stakes. Entities bringing foreign equity must obtain registration from the Pension Fund Regulatory and Development Authority and comply with the PFRDA Act and related rules. Investments that effect control or ownership transfer to non-resident entities require prior government approval in consultation with financial sector authorities, and the investee Indian pension fund company is responsible for ensuring compliance; ownership and control are as defined under FDI policy.

Foreign Direct Investment reporting: VPN accounts for e Biz access must be procured and prepaid, with records maintained for compliance.
AD Category I banks must obtain individual VPN accounts from NIC for e Biz access, with each account coterminous with the Class 2 digital signing certificate (maximum two years), pay the prescribed advance to NICSI via NEFT/RTGS to the designated ICICI account, submit the Payment Reference Form and supporting user documentation, and maintain records of connections, amounts remitted and reconciliation information; reconciliation issues are to be addressed with NICSI. The directions are issued under the Foreign Exchange Management Act.

Suspension of FCRA registration for unauthorized transfers and non disclosure of foreign contributions, triggering account freeze and review.
Registration under FCRA was suspended under Section 13 for a statutory period due to unauthorized diversion of foreign contributions from the designated FCRA account into multiple undeclared utilization and other accounts without intimation, repeated under reporting and omission in returns and auditor certificates, excessive administrative expenditure without prior approval, funding of legal costs for associated entities, transfer of funds to a non FCRA trust, non disclosure of foreign remuneration, unauthorised office relocation and replacement of executive committee members in breach of applicable Sections and Rules.

Foreign direct investment in insurance allowed higher ceiling, with automatic route to lower share and government approval for larger stakes.
Foreign direct investment in the Indian insurance sector is permitted up to forty nine percent with investment up to twenty six percent under the automatic route and any additional foreign investment up to the sector ceiling requiring Government approval. Investors and companies must comply with the Insurance Act, obtain IRDA licences, ensure ownership and control remain with resident Indian entities, and observe FEMA/SEBI rules for portfolio investment and RBI pricing guidelines; defined terms follow the referenced notification.

Cancellation of FCRA registration for failure to file annual returns triggers deregistration and asset management directives for affected organisations.
The Central Government cancelled the certificates of registration of numerous associations for failing to file mandatory annual returns in form FC 6 for the relevant financial years, after issuing show cause notices and receiving limited responses; cancellations were effected for violation of the statutory annual return obligation and attendant regulatory rule, and district authorities and financial regulators were directed to manage assets and take necessary administrative action during the cancellation period.

Buyer's credit cap removal allows unlimited buyer's credit for project exports under revised FEMA project export guidelines.
Authorised dealer banks and participating export finance institutions may extend buyer's credit to foreign purchasers for export of goods on deferred payment terms and turnkey projects from India without the former USD limit; the USD 20 million cap is withdrawn and the Memorandum of Instructions on Project and Service Exports (PEM) has been revised. Authorised dealers must notify constituents of the revised PEM and implement the changed procedures for post award approvals and modifications. Directions are issued under the Foreign Exchange Management Act and are without prejudice to other statutory permissions.