Foreign Direct Investment reporting enabled on e Biz platform, allowing online ARF and FCGPR filing with AD verification for UIN allocation.
Enables online reporting of Foreign Direct Investment on the e Biz platform via ARF and FCGPR services: companies upload digitally signed forms; Authorised Dealer Category I banks must download, verify and re upload verified forms for RBI processing and Unique Identification Number allocation. The online facility is additional to the existing manual reporting, and ADs must access the portal through NIC provided VPN accounts and assist customers; VPN financial arrangements will be finalised separately. The directions are issued under FEMA and do not affect other statutory permissions.

Import payment procedure: requirement of Form A-1 removed; authorised banks must verify transaction bonafides under FEMA.
Dispenses with the requirement of submitting Form A-1 for import payments; AD Category I banks must obtain requisite importer details and satisfy themselves of the bonafides of transactions before effecting remittances. Directions issued under Section 10(4) and Section 11(1) of FEMA, 1999 and without prejudice to other legal permissions.

Line of credit conditions require majority India sourced supplies, specified letter of credit and disbursement timelines and reporting.
Exim Bank's LOC to the Government of the Republic of Gambia finances eligible exports for an electrification project, requiring at least 75 percent of each contract's goods and services to be supplied from India and permitting up to 25 percent foreign procurement. The agreement prescribes distinct timelines for opening Letters of Credit and disbursement, mandates EDF/SDF reporting for shipments, disallows agency commission under the LOC while permitting exporter-funded commission from permitted forex balances subject to AD Category I bank oversight, and is issued under sections 10(4) and 11(1) of FEMA, 1999.

Export advance compliance: banks must ensure timely shipment, report overdue advances and refer suspicious cases for enforcement.
An exporter receiving an advance must complete shipment within the stipulated period; AD Category I banks must monitor overdue advances, exercise KYC and AML due diligence to ensure bona fide flows, refer doubtful or chronic defaulters to the Directorate of Enforcement, and submit a quarterly statement of overdue export advances as per the Annex within 21 days from quarter end, under powers conferred by the Foreign Exchange Management Act, 1999.

Minimum residual maturity requirement for FPI debt investments mandates long-term maturities, excluding CPs and short-optional instruments.
FPIs must make all new investments in Indian debt instruments with a minimum residual maturity of three years; fresh investments in commercial paper and in instruments with optionality exercisable within three years are prohibited. Investment in amortised instruments is permitted only where the instrument's duration is three years or longer. Arrangements that negate these maturity or optionality constraints do not conform with the prescribed directions, and authorised dealer banks must communicate and enforce these requirements under the stated regulatory powers.

Reinvestment of coupons in government securities permitted outside FPI investment limits, with reporting and operational guidance required.
FPIs may reinvest coupons received on existing government securities into government securities on a repatriation basis, and such reinvestments shall be kept outside the applicable FPI limit for government securities; AD Category I banks must report these investments as prescribed and SEBI will issue further operational guidelines.

Minimum maturity requirement: FPIs must place future debt investments with minimum three year residual maturity and avoid money market funds.
All future FPI debt investments must have a minimum residual maturity of three years, applying to government securities and corporate bond investments and to limits vacated on sale or redemption, which must be reused for corporate bonds meeting the same maturity requirement. FPIs are prohibited from making further investments in liquid and money market mutual fund schemes. There is no lock in; FPIs may sell existing holdings, including those with less than three years' residual maturity, to domestic investors, and the directions take immediate effect.

Foreign direct investment carve-out for medical devices establishes distinct FDI treatment separate from pharmaceuticals.
Foreign direct investment policy for pharmaceuticals has been amended to carve out medical devices as a separate category with immediate effect, changing the regulatory treatment previously applied to medical devices and prompting amendments to the Foreign Exchange Management Regulations; Authorised Dealer Category I banks are to notify customers and the directions operate without prejudice to other statutory approvals.

Line of Credit for export finance enables majority-India sourcing, EDF/SDF compliance and restricted agency commission payment.
A Line of Credit from the Export-Import Bank of India to the Government of the Republic of Senegal finances a Rice Self-Sufficiency Programme, funding eligible goods, machinery, equipment and consultancy services eligible under India's Foreign Trade Policy; at least three quarters of each contract price must be supplied from India with up to one quarter procured outside India. Shipments must be declared on EDF/SDF forms; no agency commission is payable under the Line of Credit though exporters may use own resources or EEFC balances for commission after realization, subject to remittance rules.

AML/CFT guidance for money changers requires enhanced risk measures and compliance while permitting legitimate transactions.
Authorised persons in money changing activities must consider FATF updates on jurisdictions with AML/CFT deficiencies and apply enhanced risk sensitive measures while legitimate transactions remain permissible; franchisors must ensure agents and franchisees comply. The circular mandates incorporation of the FATF information into risk assessments, communication to constituents, record maintenance, and adherence to customer due diligence, transaction monitoring and reporting obligations under applicable foreign exchange and anti money laundering frameworks.

Anti Money Laundering standards: Indian agents under MTSS must apply FATF guidance to cross border inward remittances.
Authorised Persons (Indian Agents) under the Money Transfer Service Scheme must apply FATF guidance on AML/CFT for cross border inward remittances, consider FATF's updated statement on high risk jurisdictions, and ensure that Sub Agents comply with these guidelines; legitimate transactions are not barred and the directions are issued under statutory powers.

Line of Credit for Nigerian power projects mandates majority India-sourced supplies, defined LC/disbursement timelines and FEMA compliance.
Exim Bank's Line of Credit to Nigeria finances eligible Indian exports for specified power projects, requiring a substantial majority of contract value to be supplied from India while allowing a minority portion to be procured abroad; the agreement fixes distinct timelines for opening Letters of Credit and disbursement for project exports and supply contracts, mandates GR/SDF shipment declarations, prohibits agency commission payment under the LOC (permitting exporter-funded commission in free foreign exchange subject to AD bank rules), and is issued under FEMA powers.

Line of Credit requires majority India sourced supplies and EDF/SDF compliance, with commission remittance from exporter resources.
Exim Bank extended a Line of Credit to the Government of the Republic of Gambia to finance eligible Indian exports for replacement of asbestos water pipes; eligible supplies must be majority India-sourced, with differing time-limits for Letters of Credit and disbursement for project versus supply contracts. 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 Exchange Earners' Foreign Currency Account balances after realization, subject to prevailing instructions. Directions issued under FEMA do not affect other required approvals.

ECB modification powers: AD Category I banks may approve schedule, amount and cost changes, subject to ceilings and reporting.
Authorised dealer Category I banks may permit modifications to ECB terms-changes in draw down and repayment schedules, reductions in amount, and increases in all in cost-provided revised average maturity and/or all in cost conform to applicable ceilings and guidelines and changes occur during the ECB tenure; lender changes and transfers on corporate reorganisations are allowed after ensuring borrower eligibility and continued compliance.

Cross-border carriage of Indian currency permits limited transport of higher-denomination notes to Nepal and Bhutan under FEMA regulations.
Individuals travelling to Nepal or Bhutan may carry specified higher-denomination Reserve Bank of India currency notes subject to a prescribed ceiling; Authorised Persons must inform constituents and customers. The amendment to the Foreign Exchange Management (Export & Import of Currency) Regulations, 2000 has been notified in the Official Gazette, and the circular is issued under the Foreign Exchange Management Act without prejudice to permissions required under other laws.

Remittance of salary: facility extended to employees deputed to group companies in India and to LLPs under forex rules.
Remittance of salary outside India under Regulation 7(8) extends to employees deputed to a group company in India and the term 'company' in that provision includes a Limited Liability Partnership; the Reserve Bank amended the principal Regulations in 2014 to reflect this position and Category I Authorised Dealer banks are to notify their constituents, with the directions issued under FEMA subject to other statutory permissions.

Depository receipts scheme: new rules cap foreign holdings and require Form DRR reporting after issuance.
The circular implements the Depository Receipts Scheme, 2014, designating specified Schedule-listed securities as eligible for issuance/transfer to foreign depositories subject to applicable FEMA foreign holding limits; prohibits issuance of depository receipts at prices below corresponding domestic issue prices; requires compliance with FEMA conditions where issuance increases company capital; and mandates the domestic custodian to file Form DRR with the Reserve Bank within thirty days of close of the issue/programme.

Full FDI through automatic route permitted in construction development, subject to conditions set out in the Press Note.
The Construction Development sector is permitted full Foreign Direct Investment under the Automatic route, subject to the conditions set out in Press Note No.10 (2014 Series) dated December 3, 2014; the Reserve Bank amended the principal FEMA regulations to implement this revision and directed Authorised Dealer Category I banks to notify constituents. The directions are issued under the Foreign Exchange Management Act and remain without prejudice to other statutory permissions.

Overseas direct investment rules tightened for proprietorships and unregistered firms; approval conditioned on export status and compliance.
Revises approval-route eligibility for Overseas Direct Investment (ODI) by proprietorship concerns and unregistered partnership firms: applicant must be a Status Holder under the Foreign Trade Policy, show a proven export track record with limited export outstanding and consistently high performance, be KYC-compliant with verifiable business and turnover, not be under adverse notice or listed as a defaulter, and proposed investment abroad must not exceed prescribed ceilings based on recent average export realisation or net owned funds.

Hedging under past performance route: simplified documentation lets CFO and CS certify declarations and excess limit use.
Amendments relax documentary requirements for hedging under the Past Performance route by allowing quarterly declarations and excess limit certifications to be signed by the Chief Financial Officer and Company Secretary (or CEO/COO with CFO if no CS), replacing prior statutory auditor certification; AD Category I banks may permit aggregate outstanding contracts beyond fifty percent of the eligible limit after examining a prescribed CFO/CS declaration and turnover certificate; statutory auditors continue to certify amounts booked and compliance annually.