Rupee vostro account regulation mandates prior central approval, strict KYC/AML, collateral and reporting controls.
Prior Reserve Bank approval is required for AD Category I banks to open and maintain Rupee and foreign currency vostro accounts of non resident Exchange Houses; banks must perform due diligence, maintain separate credit only accounts per arrangement, prevent overdrafts, ensure Nostro credit before Rupee crediting, apply DDA/Non DDA/Speed Remittance procedures with prescribed collateral and audit or representative inspections, enforce KYC/AML/CFT compliance, and submit specified periodic statements and an annual Board approved review to the Reserve Bank.

Money Transfer Service Scheme: inbound personal remittances only, agent authorization, collateral and strict KYC/AML reporting.
Money Transfer Service Scheme permits only inward personal remittances to India through authorised Indian Agents tied to licensed Overseas Principals; Indian Agents must obtain RBI permission, satisfy entry and renewal criteria, and remain liable for sub agents. The scheme sets transaction caps (USD 2,500 per remittance, cash up to Rs.50,000), excludes certain purposes, requires Overseas Principals to maintain minimum collateral (USD 50,000 plus security) with half yearly review, and mandates comprehensive KYC/AML/CFT policies, ten year record retention, and reporting of cash and suspicious transactions to FIU IND.

External Commercial Borrowings: dual routes, eligibility, maturity and all in cost limits with strict end use and reporting rules.
External Commercial Borrowings, FCCBs/FCEBs, qualifying preference shares and trade credits are regulated under dual routes: an Automatic Route for specified real sector, infrastructure and service sector financing and an Approval Route for cases outside automatic thresholds or involving special entities. The framework prescribes eligible borrowers and recognised lenders, sector and annual caps, minimum average maturities, all in cost ceilings, permitted and prohibited end uses, conditions on security and guarantees, parking of proceeds, prepayment/refinancing rules, and mandatory reporting (LRN, Forms 83 and ECB 2) with FEMA enforcement for non compliance.

Master Circular: compounding process for FEMA contraventions, application, 180 day disposal, payment within fifteen days.
The Circular consolidates the procedure for Compounding of Contraventions under FEMA, 1999, describing the voluntary application process to the Compounding Authority (Reserve Bank or Directorate of Enforcement), prerequisites and exclusions (quantifiability of amount, repeat contraventions within three years, national security/money laundering concerns), the 180 day disposal timeframe, factors for quantifying the compounding sum, mandatory payment within fifteen days by demand draft, and referral of certain matters to investigative agencies.

Export of Goods and Services: declaration, repatriation, AD banks' procedures, time limits, and account/payment rules under FEMA.
Exports from India are governed by FEMA and related Rules/Regulations; exporters must submit prescribed declaration forms (GR, SDF, PP, SOFTEX), realise and repatriate full export value within specified periods (generally twelve months) and route receipts through AD Category I banks. The Circular prescribes permissible receipt/payment modes (ACU settlement, credit card, FCNR/NRE debits), foreign currency account types (EEFC, DDA, SEZ accounts), procedures for document handling, advance payments, extensions, write offs, and operational/reporting duties of AD Category I banks, with specified exemptions and prior approval requirements.

Overseas direct investment by Indian residents permitted via automatic and approval routes with caps, funding rules and mandatory reporting.
The Master Circular consolidates rules under FEMA 2004 for resident Indian direct investment in overseas JV/WOS through two routes: an Automatic Route permitting investments up to 400% of the investor's net worth (including equity, loans and 100% of guarantees) subject to conditions, and an Approval Route for other cases. It prescribes funding methods, valuation and reporting requirements, sectoral restrictions (real estate, banking, financial services), SPV rules, disinvestment conditions, mandatory routing via a designated AD Category I bank, use of Form ODI and allotment of a Unique Identification Number, and ongoing APR and compliance obligations.

Master Circular sets FEMA compliance, advance remittance conditions, and evidence/reporting rules for import transactions.
The Master Circular directs AD Category - I banks to ensure imports comply with FEMA and Foreign Trade Policy, KYC/AML norms, and to use Form A 1 for import payments above USD 500. It prescribes time limits (six months normally; up to three years for certain trade credits), conditions for advance remittances (guarantee/L/C thresholds and sectoral relaxations for rough diamonds, aircraft, BPO), evidentiary requirements for remittances above USD 100,000 (Exchange Control Bill of Entry or approved alternatives), follow up/reporting obligations (BEF, half yearly and special reports), document preservation and sectoral controls for precious metals and specialised imports.

Non-Resident Ordinary Rupee Account rules permit limited repatriation and set permissible credits, debits, compliance requirements.
Consolidates rules for Non-Resident Ordinary Rupee (NRO) Accounts: eligibility of NRIs/PIOs and certain foreign visitors; permissible credits (freely convertible remittances, legitimate Indian dues, sale/inheritance proceeds) and debits (local rupee payments, remittance of current income, repatriation for bonafide purposes subject to bank satisfaction); remittance of balances and sale proceeds subject to an overall annual ceiling, documentary evidence, remitter's undertaking and Chartered Accountant certificate; specified nationality-based restrictions; operational, loan, power-of-attorney and tax-compliance safeguards.

Remittance facilities for NRIs, PIOs and foreign nationals: repatriation limits, documentation and country-specific restrictions outlined.
Remittance facilities under FEMA permit repatriation of current income and up to USD one million per financial year from NRO account balances or sale proceeds for NRIs/PIOs and eligible foreign nationals, subject to documentary evidence, an undertaking by the remitter and a Chartered Accountant certificate in prescribed formats; Authorised Dealer banks must satisfy themselves on eligibility, tax compliance, preserve verification documents and apply country-specific exclusions and property-specific limits.

Master Circular: authorised dealers may permit resident remittances under FEMA rules, including a USD 200,000 liberalised annual limit.
Authorised Dealers may permit residents to draw and remit foreign exchange under Section 5 FEMA and the FEM (Current Account Transactions) Rules, 2000, subject to prohibitions in Schedule I, prior approvals for Schedule II items and Reserve Bank approval for specified Schedule III limits; ADs may rely on self declaration for specified transactions (including medical treatment and certain travel/education/emigration purposes), implement the Liberalised Remittance Scheme of USD 200,000 per financial year for resident individuals with PAN and due diligence, accept specified forms of payment and cards for permissible transactions, and must retain records, ensure KYC/AML compliance and report or refuse transactions that appear designed to contravene FEMA.

Realisation and repatriation timelines extended for export proceeds, maintaining SEZ and warehouse provisions and FEMA authority.
Authorised Dealer Category I banks are notified of an extension of the relaxation increasing the period for realisation and repatriation of the full export value of goods and software; the extension lasts until the cut off date announced in the circular. Provisions for units in Special Economic Zones and exports to overseas warehouses remain unchanged. The Directions are issued under the Foreign Exchange Management Act, 1999 and banks should inform their constituents.

Compounding of foreign exchange contraventions allows regulatory settlement via application, hearing, and prescribed payment obligation.
The Reserve Bank may compound eligible contraventions under the Foreign Exchange Management Act through its Compounding Authority, which exercises discretion to admit and process applications submitted in the prescribed form, assess whether contraventions are quantifiable, afford an opportunity of personal hearing, determine the sum for compounding based on factors such as gain, loss, economic benefit and repeat conduct, and issue a compounding order specifying breached provisions and payment terms; ineligible or serious matters may be referred for investigation and failure to pay has specified consequences.

Special currency basket value revised; authorised banks must apply the new rupee valuation and notify constituents.
The circular announces a further revision of the rupee value of the special currency basket, fixes the new valuation effective from the stated date, directs Authorised Dealer Category I banks to apply the revised rupee valuation and to notify their constituents, and records that the Directions are issued under the foreign exchange management statutory framework without prejudice to other legal permissions.

Prohibition on lottery remittances: banks must block and scrutinize transfers tied to fictitious fund schemes under foreign exchange law.
Prohibition on remittances for participation in lotteries, money circulation schemes and similar fictitious offers is reiterated; AD Category I banks must be vigilant when opening accounts or permitting transactions collecting fees for such schemes, and residents who collect or remit such payments abroad are liable for contravention of the Foreign Exchange Management Act and for breaches of KYC and AML regulations.

Line of Credit export content requirement enforces majority India-sourced supplies and FEMA-based compliance for financed project exports.
A Line of Credit from Exim Bank finances Sierra Leone potable water projects and consultancy services for exports eligible under India's Foreign Trade Policy. At least 85 per cent of contract value must be supplied from India; up to 15 per cent (excluding consultancy) may be procured abroad. The Credit Agreement is effective April 7, 2010, with LC/disbursement deadlines of 48 months from project completion for project exports and 72 months from agreement execution for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC; exporters may use own or EEFC funds for commissions after realisation. Directions are issued under sections 10(4) and 11(1) of FEMA.

Liberalisation of technical collaboration payments permits authorised banks to allow royalty and lump sum remittances without prior ministry approval.
Drawal of foreign exchange for payment of royalties and lump-sum consideration under technical collaboration agreements no longer requires prior approval of the Ministry of Commerce and Industry; Authorised Dealer Category I banks may permit such remittances pursuant to the amendment to the Foreign Exchange Management (Current Account Transactions) Rules, 2000, subject to FEMA powers and other applicable legal permissions.

External Commercial Borrowings: IFCs allowed automatic route ECB access within owned funds limits; excess borrowings require approval.
IFCs, as NBFCs classified by the Reserve Bank, may avail ECBs, including outstanding ECBs, up to a prescribed proportion of their owned funds under the automatic route, subject to existing prudential guidelines; ECBs beyond that threshold require Reserve Bank approval under the approval route, and Authorised Dealer Category I banks must ensure compliance when certifying applications.

Foreign direct investment prohibition in manufacture of cigarettes and related tobacco products imposed; activity added to prohibited sectors.
The policy now prohibits foreign direct investment in the manufacture of cigars, cheroots, cigarillos and cigarettes of tobacco or tobacco substitutes. The prior provision permitting FDI under the government approval route and subject to industrial licensing has been deleted and the activity expressly added to the list of sectors where FDI is prohibited, with immediate effect as an amendment to the Consolidated FDI Policy.

Release of foreign exchange ceiling increased for travel, with country-specific higher limits retained and notification required.
The Reserve Bank increased the permissible sale of foreign currency notes and coins by Authorised Dealers and Full Fledged Money Changers to travellers, raising the ceiling for most countries to a higher single trip limit to be released from the traveller's overall foreign exchange entitlement. Pre existing, higher limits remain in place for travellers to Iraq and Libya, and full release in notes and coins continues for travellers to the Islamic Republic of Iran, the Russian Federation and other Republics of the Commonwealth of Independent States.

FDI share transfer pricing guidelines revised-new valuation and certification requirements for resident-non resident equity transfers.
Revised pricing guidelines for transfer of equity instruments between residents and non residents require listed shares to be transferred at the ruling market price and unlisted shares to be valued by a SEBI registered Category I merchant banker or Chartered Accountant using the discounted free cash flow method or other prescribed methodologies; the computed price must be certified. Transfers by non residents to residents are subject to the pricing ceiling based on resident to non resident rules, with specified procedures for exchange traded and non exchange sales and a permitted premium where management control passes to resident promoters.