IFSC entities treated as non residents under FEMA, making their transactions with Indian residents subject to FEMA rules.
IFSC financial institutions and branches recognised under the IFSC framework are treated as persons resident outside India, making their dealings with Indian residents subject to FEMA, 1999 and related Rules and Regulations. "Financial transaction" covers payments, bills, securities transfers and debt acknowledgements; "financial service" covers activities permitted under the institution's governing statute or regulator. The 2015 IFSC Regulations create a specific regime: other FEMA Regulations apply to IFSC entities only where expressly provided. AD Category I banks must inform constituents; the direction is issued under section 47 of FEMA, 1999 without prejudice to other statutory approvals.

Position limits for FPIs expanded in ETCD markets, allowing larger USD INR and other currency exposures under exchange monitoring.
Revision increases permitted open positions for Foreign Portfolio Investors (FPIs) in the Exchange Traded Currency Derivatives (ETCD) market: FPIs may take both long and short positions in USD INR up to an increased per exchange limit and combined positions in EUR INR, GBP INR and JPY INR up to an aggregate per exchange limit; exchanges shall monitor limits and report breaches, and may prescribe fixed per contract limits for non USD pairs.

ETCD participation limits expanded, documentation eased and importer hedging entitlement aligned with exporters.
Guidelines expand ETCD participation by raising position limits for USD INR and authorising combined positions in EUR INR, GBP INR and JPY INR, require exchanges to monitor breaches, permit statutory auditor certificates to be replaced by signed undertakings from the CFO and Company Secretary (or CEO/COO if no CS), and allow importers to hedge contracted exposures up to their full eligible limit, with other operational conditions unchanged.

Line of Credit for project exports mandates majority India sourcing and time-limited LC/disbursement windows under FEMA directions.
Exim Bank's Line of Credit to Banco Exterior de Cuba finances a fertilizer plant with a requirement that at least 75% of contract value for goods and services be sourced from India and up to 25% may be procured abroad. The Credit Agreement is effective from February 2015 and prescribes LC/disbursement deadlines: 48 months from scheduled completion for project exports and 72 months from agreement execution for supply contracts. Shipments must be declared on EDF/SDF forms. No agency commission is payable under the LOC, though exporters may remit commission from own funds or EEFC balances after realisation, subject to existing rules; AD Category-I banks must notify exporters and may seek details from Exim Bank. Directions are issued under FEMA.

Know Your Customer compliance: MTSS Indian Agents must apply RBI banking regulation AML/CFT guidelines and ensure sub agent adherence.
Know Your Customer, Anti Money Laundering and Combating Financing of Terrorism standards under the Prevention of Money Laundering Act are mandated for Authorised Persons acting as Indian Agents under the Money Transfer Service Scheme; Department of Banking Regulation guidelines shall apply mutatis mutandis to all APs, with primary responsibility on Indian Agents to ensure Sub Agent adherence and to inform their Sub Agents and constituents.

KYC and AML compliance: DBR instructions apply to authorised persons and their agents, franchisers remain responsible.
Instructions on KYC, AML and CFT for money-changing activities issued by the Department of Banking Regulation shall apply to all Authorised Persons mutatis mutandis; the Foreign Exchange Department will not issue separate instructions. The consolidated guidance also applies mutatis mutandis to agents and franchisees, with franchisers bearing sole responsibility for ensuring compliance; Authorised Persons must notify their constituents. The directions are issued under the Foreign Exchange Management Act and the Prevention of Money Laundering Act and do not affect other legal permissions.

Failure to file mandatory annual returns leads to cancellation of FCRA registration, including all branches and units.
Registration was cancelled after the association failed to submit mandatory annual returns in form FC-6 for successive financial years within the prescribed period; despite claiming no receipt of foreign contributions and later filing returns belatedly, the Central Government, on available information, rescinded the association's certificate of registration for violation of the annual-return filing requirement and extended the cancellation to its branches and units.

Line of Credit compliance: export financing requires Indian content, EDF/SDF reporting, and FEMA based RBI procedural adherence.
Exim Bank's Line of Credit to Myanma Foreign Trade Bank finances irrigation projects subject to at least 50 percent Indian content; eligible goods and services include machinery, equipment and consultancy services under the Foreign Trade Policy. Letters of credit and disbursements are time limited, shipments must be declared on EDF/SDF forms, and AD Category I banks must advise exporters, permit agency commission payments from exporter resources or EEFC balances after realization, and follow RBI and FEMA directions.

Discontinuation of Stat 5 and Stat 8 returns: banks must use XBRL for NRD-CSR reporting and stop manual filings.
Banks maintaining NRD accounts must discontinue submission of Stat 5 and Stat 8 Returns from March 2015 and stop sending both hard and soft copies to the Department of Statistics and Information Management. NRD-CSR reporting has been migrated to and stabilised on the XBRL platform, which will be the operative mechanism for NRD data submission. The direction is issued under FEMA statutory authority and is without prejudice to permissions or approvals required under other laws.

Line of Credit terms: Exim Bank export credit requires minimum Indian content, EDF/SDF declaration, and commission limits.
Exim Bank's Line of Credit to Banco Exterior De Cuba finances modernization of an injectable product plant subject to eligibility under India's Foreign Trade Policy and FEMA directions. The LOC mandates that at least 75 percent of contract value for goods and services be supplied from India, with up to 25 percent procured externally. It prescribes time limits for opening Letters of Credit and disbursement, requires EDF/SDF declaration of shipments, disallows agency commission under the LOC while permitting exporters to pay commissions from their own resources or EEFC balances subject to realization and remittance rules, and directs AD Category-I banks to inform exporters.

FDI in construction development: clarified rules on minimum capitalization, project commencement, trunk-infrastructure and exit/transfer protocols.
Minimum capitalization is a project-specific threshold: FDI cannot be brought into a project unless the required minimum capitalization is achieved within six months of project commencement, defined as the statutory approval date of the building/layout plan; later FDI is permitted if capitalization is met. Exit before completion requires FIPB approval; automatic exit is allowed upon project completion or upon development of defined trunk infrastructure certified by a Council of Architecture-registered architect. NR-to-NR transfers prior to completion require FIPB approval; completed projects may host foreign investors for operation and management subject to the real estate business exclusion.

Prohibition on property acquisition by specified foreign citizens now includes Macau and Hong Kong, requiring RBI permission for transfers.
Prohibition on acquisition or transfer of immovable property by citizens of specified jurisdictions is extended to include Macau and Hong Kong; such persons cannot acquire or transfer immovable property in India, other than leases not exceeding five years, without prior permission of the Reserve Bank under Regulation 7 of the Foreign Exchange Management (Acquisition and Transfer of immovable property in India) Regulations, 2000, as amended by the 2015 notification.

Line of credit conditions require majority India sourcing and specified disbursement and reporting requirements under FEMA.
Exim Bank's LOC to Niger finances solar village electrification and a 5 MW PV project, requiring at least 75 percent India-sourced goods and services; up to 25 percent may be procured abroad. The Credit Agreement is effective from February 18, 2015, with opening/disbursement timelines tied to project completion (48 months) and supply contracts (72 months). 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 realization, subject to remittance rules. AD Category-I banks must inform exporters and obtain LOC details; directions issued under FEMA.

Loan-to-value adjustment for housing loans: banks may include stamp duty and documentation charges for low-cost dwellings.
Banks may include stamp duty, registration and other documentation charges in the Loan-to-Value (LTV) ratio calculation for dwelling units whose cost does not exceed Rs. 10 lakh to assist EWS and LIG borrowers. For projects sponsored by Government or Statutory Housing Authorities, banks may disburse loans according to the authorities' prescribed payment stages-even if not linked to construction stages-provided the authority has no history of project non-completion.

NGO registrations cancelled for failure to file FC 6 annual returns; district authorities to manage assets.
The Central Government cancels the FCRA registration certificates of 1,142 associations in the erstwhile State of Andhra Pradesh for failure to file mandatory annual returns in form FC 6 for 2009 10 to 2011 12, constituting violation of Section 18 read with Rule 17(1). Show cause notices were issued to 1,441 associations; 229 replies are under examination, 510 notices were returned undelivered and 632 associations did not respond. Cancellation is effected under Section 14 of the FCRA, 2010, with District Magistrates directed to manage the associations' assets and the Reserve Bank of India notified.

Trade credit all-in-cost ceiling remains applicable, extending the regulatory cap on import finance and subject to review.
The circular states that the existing all-in-cost ceiling on trade credits for imports into India will continue to apply until March 31, 2015 and is subject to review thereafter; all other aspects of the Trade Credit policy remain unchanged, Category I Authorized Dealer banks must inform their constituents, and the directions are issued under the Foreign Exchange Management Act without prejudice to other statutory permissions.

All-in-cost ceiling for external commercial borrowings remains in force and AD banks must notify customers accordingly.
The circular maintains the all-in-cost ceiling for External Commercial Borrowings as previously specified, extends its applicability until the designated review date, leaves all other ECB policy provisions unchanged, directs Authorized Dealer Category I banks to inform constituents and customers, and issues the directions under Sections 10(4) and 11(1) of the Foreign Exchange Management Act without prejudice to other legal permissions.

Foreign investment cap in insurance sector revised to permit higher foreign equity under automatic and government routes.
The policy amends the insurance-sector foreign investment regime to permit aggregate foreign investment up to 49 per cent of paid-up equity, with investment up to 26 per cent under the automatic route and any additional FDI above 26 per cent and up to 49 per cent requiring government approval; the cap applies equally to insurance companies and specified intermediaries and is subject to Insurance Act compliance, regulator licensing, resident Indian ownership and applicable FEMA/SEBI and RBI pricing rules.

Import of gold: nominated banks may import on consignment while domestic sales require upfront payment and metal loans remain permitted.
The circular clarifies that the obligation to export applies only to unutilised gold imported before abolition of the prior scheme; nominated banks may import gold on a consignment basis and all domestic sales must be against upfront payment, with banks permitted to grant gold metal loans. Star and Premier Trading Houses may import on delivery against payment without end use restrictions, and imports of coins and medallions are permitted though banks remain temporarily restricted from selling them. Directions are issued under the Foreign Exchange Management Act.

Re-entry into FCY INR swaps permitted only after expiry of the original swap tenor to hedge surviving underlying exposures.
Residents with surviving underlying exposures may, after cancellation of a swap contract, re-enter into a fresh Foreign Currency-INR swap only after the expiry of the tenor of the originally cancelled swap; all other operational guidelines, terms and conditions governing FCY-INR swaps remain unchanged.