Special currency basket value revision fixes rupee parity for deferred payment protocols, requiring banks to notify constituents under FEMA.
The rupee valuation of the special currency basket applicable to the Deferred Payment Protocols with the erstwhile USSR is revised and fixed at Rs.60.4392 effective August 12, 2008; Authorised Dealer Category I banks are directed to notify their constituents of the revised parity. The direction is issued under the Foreign Exchange Management Act and is without prejudice to other statutory permissions or approvals.

Advance remittance liberalisation: banks may remit import advances subject to KYC, due diligence and documentary import evidence.
Authorised Dealer Category I banks may make advance remittances for import of goods subject to conditions: the importer must be a bank customer; full compliance with KYC/AML for importer and overseas supplier; bank commercial judgment and satisfaction of bonafides; payments made directly to supplier per sale contract; import within six months (three years for capital goods) with undertaking to produce documentary evidence; banks to follow up evidence and ensure repatriation or permissible utilisation if imports do not occur.

Advance remittance authorisation allows unlimited, unguaranteed payments for specified rough diamond imports after supplier name change.
Authorised Dealer Category - I banks may permit advance remittances without limit and without bank guarantee or standby letter of credit for importers (excluding public sector and government departments/undertakings) importing rough diamonds from the specified list of suppliers; existing conditions in the prior circular remain unchanged. The circular also records the name change of Diamond Trading Company Pvt. Ltd. UK to De Beers UK Limited and directs banks to notify constituents; the directions are issued under the Foreign Exchange Management Act.

Foreign investment limits in commodity exchanges require mandated divestment to meet composite ceilings with a compliance deadline.
Commodity exchanges holding foreign investment above the prescribed composite ceiling must divest foreign equity equal to the excess and adhere to allocated sub-limits for portfolio and FDI holdings. Exchanges are required to submit a compliance report with foreign investment and equity-structure details to specified government and regulatory bodies by the end of the transition period, and non-compliance after the deadline constitutes a violation under the foreign exchange regulatory framework.

Overseas direct investment by registered trusts and societies permitted in same sector abroad with prior Reserve Bank approval.
Registered trusts and societies that have set up hospitals in India may make overseas investments in the same sector by participating in a Joint Venture or Wholly Owned Subsidiary abroad, subject to the Annex eligibility criteria, prior approval of the Reserve Bank, submission of Form ODI Part I through an AD Category I bank, and compliance with existing terms and reporting requirements; regulatory amendments to the FEMA 2004 regulations will be issued separately.

Direct dispatch of shipping documents permitted with bank regularisation subject to realised export proceeds and KYC/AML safeguards.
AD Category I banks may regularise exporters' direct dispatch of shipping documents to consignees or their destination agents up to a specified monetary threshold per shipment provided export proceeds are realised in full, the exporter has been a regular customer for at least six months, the exporter's account meets KYC/AML requirements, and the bank is satisfied of the transaction's bonafides; banks may file a Special Transaction Report where doubts arise.

Currency futures permitted for residents to hedge exchange risk under RBI and SEBI directions with regulated participation.
Introduction of currency futures as standardized exchange traded contracts for approved currency pairs, permitting participation only by persons resident in India subject to RBI and SEBI directions. Contracts are standardized (contract size, INR quotation and settlement, maturity cap, settlement reference rate). Membership and participation rules distinguish the currency futures segment, impose prudential eligibility for AD Category I banks, require inclusion of futures exposure within banks' Net Open Position and Aggregate Gap limits, and mandate margins, surveillance, disclosures and RBI authorisation for exchanges and clearing corporations.

EEFC account interest permission withdrawn; accounts now limited to non-interest-bearing current accounts and banks must notify customers.
With effect from November 1, 2008, EEFC accounts are restricted to being opened and maintained only as non-interest bearing current accounts, withdrawing the prior temporary permission for exporters to earn interest; Authorised Dealer Category I banks must notify their constituents and ensure accounts are maintained in the prescribed non-interest-bearing form under the relevant foreign exchange law.

Advance remittance for rough diamonds: approved supplier list expanded, remittances allowed subject to existing reporting and conditions.
Advance remittance for import of rough diamonds is permitted without limit and without bank guarantee or standby letter of credit for eligible private importers, subject to the terms, documentation and reporting format specified in A. P. (DIR Series) Circular No.34; the circular expands the list of approved foreign mining suppliers to include specified RIO TINTO and BHP Billiton entities in Belgium while preserving all existing conditions and compliance obligations under FEMA.

Foreign currency accounts: additional account allowed for project offices subject to same terms and maintained with same AD bank.
Foreign companies with project offices in India may open an additional foreign currency account for each project, subject to the same terms and conditions as the existing account, provided both accounts are maintained with the same Authorized Dealer Category I bank; other conditions remain unchanged, the measure is effective immediately, amendments to FEMA regulations will follow, and the directions are issued under the Foreign Exchange Management Act.

No objection for ECB security: AD banks may clear charges, pledges and guarantees subject to ECB compliance and conditions.
AD Category - I banks may convey no objection under FEMA for creation of charges on immovable assets, pledge of financial securities, and issuance of corporate or personal guarantees to secure resident ECBs, provided the ECB complies with extant guidelines, the loan agreement includes a security clause and is signed, and the borrower holds a Loan Registration Number. Such no objection is limited to the foreign exchange angle; each security form must be co-terminus with ECB maturity and meet specified conditions on enforcement, transfer in line with FDI policy, auditor certification of end-use, and appropriate corporate or individual authorisations.

Foreign investment in NBFCs: full foreign ownership allowed via automatic route subject to minimum capitalization, RBI compliance and subsidiary conditions.
Corrigendum substitutes the Annex entry for Sl. No. 25 to confirm NBFC activities eligible for foreign investment under the automatic route and restates the conditional framework: application of minimum capitalization norms for fund based and non fund based NBFCs with prescribed upfront and staged capital infusion, permission for wholly foreign owned operating subsidiaries subject to a specified capital infusion and subsidiary compliance, allowance for joint venture NBFCs within specified foreign holding thresholds to set up subsidiaries meeting capital inflow requirements, mandatory compliance with central bank guidelines, and ordinary shares as qualifying capital.

FCNR(B) deposit interest rate guidelines consolidated and updated for applicability to scheduled commercial banks excluding RRBs.
The Reserve Bank issued a Master Circular consolidating and updating all instructions and guidelines on interest rates payable on FCNR(B) deposits issued up to June 30, 2008; the circular is directed to all Scheduled Commercial Banks (excluding RRBs) and has been placed on the Reserve Bank's website as the authoritative consolidated reference.

Interest rate guidance for rupee deposits consolidates updated instructions for domestic, NRO and NRE accounts across scheduled banks.
Consolidation of instructions updates regulatory guidance on Interest Rates on Rupee Deposits for Domestic, NRO and NRE accounts, incorporating prior circulars into a single Master Circular. The circular provides the operative provisions for calculation, notification and applicability of interest rates and is directed to all Scheduled Commercial Banks (excluding regional rural banks), with the consolidated text published on the central bank's website and a copy enclosed for compliance.

Export credit consolidation: updated master circular consolidates export credit rules and customer service guidance for scheduled banks.
Master circular consolidates and updates instructions on export credit in rupee and foreign currency and related customer service obligations for exporters, bringing together prior circulars and clarifications into a single reference. It applies to all Scheduled Commercial Banks (excluding regional rural banks) and provides banks with an updated, operative regulatory framework for extending export credit and servicing exporter accounts; the consolidated text and clarifications have been published on the central bank's website and a copy is enclosed.

Foreign contribution regulation: banks must apply enhanced due diligence and monitoring to inward contributions and ensure branch compliance.
Banks must regulate receipt of foreign contributions by applying due diligence, transaction monitoring and reporting measures under the Foreign Contribution framework; the updated instructions reiterate bank compliance obligations to detect, record and report suspicious inward remittances and require dissemination and implementation of the Master Circular across controlling offices and branches.

Export regulation under FEMA: consolidated guidance for authorised dealer banks, including operational and compliance requirements.
Export of goods and services from India is authorised under the Foreign Exchange Management Act and related RBI notifications; this Master Circular consolidates existing regulatory instructions and forms, sets out general guidelines for exporters, and prescribes operational procedures for Authorised Dealer Category I banks. The circular is organized into five parts and is issued with a one-year sunset clause to be replaced by an updated master circular.

Import of goods and services under foreign exchange law: Master Circular sets import rules, operational guidance and a one-year sunset.
Importation of goods and services is permitted under the foreign exchange regulatory framework and governed by this Master Circular, which prescribes eligibility, procedural mechanics, documentary and notification compliance for imports. The Circular is addressed to Category I Authorised Dealer banks and is organised into five parts: introduction; general guidelines; operational guidelines; an annex of notifications and forms; and a consolidated list of circulars. It contains a one-year sunset clause providing withdrawal and replacement after one year.

External Commercial Borrowings guidance consolidated under FEMA; master circular centralises rules for banks with a temporary sunset clause.
External Commercial Borrowings and Trade Credits for residents are regulated under FEMA and related notifications; this Master Circular consolidates existing instructions for banks authorised to deal in foreign exchange, lists underlying circulars and notifications in an appendix, and is issued with a sunset clause requiring withdrawal and replacement by an updated Master Circular after one year.

Risk management and inter-bank dealings consolidated for authorised dealers, covering non-resident rupee accounts and forex derivatives with limited sunset.
Consolidates regulatory instructions on risk management and inter-bank dealings for Authorised Dealers - Category I banks, confirming that rupee accounts of non-resident banks, inter-bank transactions and foreign exchange derivative contracts are governed by the cited FEMA notifications and subsequent amendments, lists underlying circulars in an appendix, and is issued with a sunset clause contemplating replacement by an updated master circular.