Foreign exchange reporting: divisions relocated; AD Category I banks must submit monthly and transaction reports to FED CO Cell New Delhi
Three divisions of the Foreign Investment Division have been relocated to the FED CO Cell, New Delhi; AD Category I banks must send all related cases and the monthly NRO remittance statements and reports on extension or closure of liaison/branch/project offices to the FED CO Cell address, while NRFAD email reporting remains unchanged.

Foreign investment in government securities: eligible foreign investors may acquire securities in any manner consistent with market practice.
Eligible non-resident investors including FIIs, QFIs, RFPIs and registered long-term investors may acquire eligible government securities in any manner consistent with prevailing market practice, following removal of the stipulation on manner of acquisition from the Principal Regulations; AD Category-I banks must inform their constituents, and the change follows the Eleventh Amendment Regulations, 2014 issued under the Foreign Exchange Management Act.

FDI in rail infrastructure permitted with automatic entry, subject to ministry sectoral guidelines and security clearance for higher equity.
Private and foreign investment is permitted by automatic entry in specified railway infrastructure activities - including suburban corridor PPPs, high speed trains, dedicated freight lines, rolling stock manufacturing and maintenance, electrification, signalling, freight and passenger terminals, industrial-park railway line/sidings and Mass Rapid Transport Systems - subject to Ministry of Railways sectoral guidelines and security clearance for proposals exceeding the capped equity threshold in sensitive areas.

Refinancing under automatic route permitted when fresh ECB lowers all-in-cost and meets specified compliance conditions.
AD Category - I banks are authorized to approve refinancing of existing External Commercial Borrowings under the automatic route where the fresh ECB's Average Maturity Period exceeds the residual maturity of the original loan, subject to conditions: both loans comply with guidelines; fresh ECB has lower all-in-cost; existing lender's consent; refinancing before original maturity; borrower not on RBI default/caution list or under DoE investigation; overseas branches/subsidiaries of Indian banks not permitted to extend refinancing; and requisite reporting (e.g., revised Form 83) is completed.

FDI cap in defence sector revised to allow higher foreign participation subject to Indian ownership, management and specialised approvals.
Amendment raises the Foreign Direct Investment cap in defence subject to industrial licence to 49% under the Government route, with proposals above that level considered by the Cabinet Committee on Security where they may afford access to modern technology. The 49% limit is composite across all foreign investment categories; portfolio investments by FPIs/FIIs/QFIs together with FVCIs are capped at a combined 24% under the automatic route. Up to 49% the investee must be Indian owned and controlled, have Indian management and a resident Chief Security Officer; applications are processed by DIPP in consultation with Defence and filed with the FIPB Secretariat.

Special Currency Basket valuation revised; authorised dealer banks must apply and notify constituents under FEMA directions.
The circular fixes the Rupee value of the Special Currency Basket at Rs. 83.137417 effective August 12, 2014, revising the earlier indicated value, and directs Authorised Dealer Category I banks to apply the revised valuation and notify their constituents; the Directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and are without prejudice to other legal permissions or approvals.

Liberalised Remittance Scheme permits acquisition of immovable property abroad and withdraws related post facto reporting.
The Liberalised Remittance Scheme for resident individuals is clarified to permit use for acquisition of immovable property abroad, and the prior post facto reporting requirement applicable to such remittances is withdrawn; these directions are issued under the Foreign Exchange Management Act and remain subject to any other statutory permissions or approvals.

Information sharing with Special Investigation Team required from authorised persons, enabling investigations and resource facilitation under FEMA powers.
Authorised persons must ensure that information and documents required by the Special Investigation Team are made available as and when required; this direction is issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 and is without prejudice to permissions or approvals under any other law.

All-in-cost ceiling for external commercial borrowings continues under ECB policy, with other provisions remaining unchanged and reviewable.
The circular directs that the existing all-in-cost ceiling for External Commercial Borrowings remains applicable until December thirty-first, two thousand fourteen and will be reviewed thereafter; all other ECB policy provisions remain unchanged. Category I Authorized Dealer banks must notify their constituents and customers. The directions are issued under the Foreign Exchange Management Act, 1999 and do not affect other legal permissions or approvals.

All-in-cost ceiling for trade credits maintained, preserving existing import finance conditions pending review by RBI under FEMA.
The Reserve Bank of India has directed that the existing all-in-cost ceiling for Trade Credits for imports into India will continue to be applicable until further review, with all other aspects of Trade Credit policy remaining unchanged; AD Category-I banks must inform constituents, and the directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

FETERS reporting requirements: discontinue ENC and schedule files; submit only BOP6 and QE files from September.
Authorised Dealer banks must stop submitting ENC and Schedule 3-6 files to FETERS from the first fortnight of September 2014 because EDPMS will provide that information. AD banks must report all ENC and Schedule 3-6 transaction data for export shipping bills/invoices generated prior to March 1, 2014 by August 31, 2014, with late submissions allowed only with RBI technical support. From that September period, only the BOP6 and QE files are required under FETERS, and all other FETERS submission guidelines remain in force. Directions are issued under FEMA.

Prepaid foreign currency cards must be sold with equivalent due diligence and KYC standards as other foreign currency instruments.
Prepaid foreign currency cards are a form of foreign currency and authorised dealers/FFMCs selling prepaid foreign currency cards for travel purposes are required to comply with the same rigorous standards of due diligence and KYC as they would in case they were selling foreign currency notes/travellers cheques to their customers.

Foreign investment in government securities adjusted; FII/QFI/FPI allocations now require new purchases of bonds with minimum three-year residual maturity.
RBI reallocated part of the foreign investment limit for SEBI-registered investors by increasing the allocation to FIIs/QFIs/FPIs while reducing the sub-limit for long term SEBI-registered investors. The incremental allocation and any future investments made from the vacated limit must be placed in government bonds with a minimum residual maturity of three years. There is no lock-in and existing securities may be sold to domestic investors. SEBI will issue operational guidelines and AD Category I banks must inform constituents; other investment conditions remain unchanged.

Line of Credit conditions for export financing to Senegal require majority Indian content and set LC/disbursement timelines and compliance rules.
A Line of Credit from Exim Bank to the Government of Senegal finances eligible Indian goods, machinery, equipment and consultancy services for meat processing and related projects; a majority of contract value must be supplied from India with the balance allowable from outside. The Agreement effective date sets different cut offs for opening Letters of Credit and disbursements for project versus supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC; exporters may use own funds or EEFC balances for commission remittances subject to AD bank approval and prevailing instructions. Directions are issued under FEMA.

Project export approvals broadened: authorised banks may grant post award clearances without monetary limits under revised PEM guidance.
Reserve Bank revised project and service export procedures allowing Authorised Dealers and Exim Bank to grant post award approvals without monetary limits, eliminating the Working Group requirement and removing the mandatory time limit for submission of post award approval forms; the revised PEM prescribes procedural safeguards, monitoring, reporting, security and facility conditions and confirms continued applicability of FEMA rules and ECGC/Exim Bank participation requirements.

e-Aadhaar e-KYC acceptance as Officially Valid Document enables paperless KYC verification for money transfer service agents.
Recognition of Aadhaar-based electronic verification, including e-KYC outputs and e-Aadhaar downloads, as valid customer identification for Indian agents under the Money Transfer Service Scheme. e-KYC data provided electronically by UIDAI upon explicit consent and biometric authentication may be treated as an Officially Valid Document for KYC under PML Rules. Indian agents must sign a KYC User Agency agreement, deploy certified biometric scanners and UIDAI-compliant software, secure transmission and encryption of Aadhaar and biometric data, and maintain a complete audit trail.

Accepting e-KYC as an Officially Valid Document enables paperless KYC with biometric authentication for identity and address verification.
Authorised Persons may accept physical Aadhaar or UIDAI e-KYC outputs as an Officially Valid Document for identity and, where address matches, for address verification. Use of UIDAI e-KYC requires the individual's explicit consent, biometric authentication, a KYC User Agency agreement with UIDAI, deployment of certified biometric scanners and UIDAI compliant software, and capture of the digitally signed, encrypted demographic data and photograph with a full audit trail. e-Aadhaar downloaded from UIDAI may be printed from the portal or authenticated by UIDAI services as prescribed.

Delegation of MTSS application processing to regional offices shifts Indian Agent permission filings to local Reserve Bank offices.
Applications for permission to act as Indian Agents under the Money Transfer Service Scheme must henceforth be submitted to the respective Regional Office of the Foreign Exchange Department that has jurisdiction over the applicant's registered office; all other MTSS instructions remain unchanged. The circular requires Authorised Persons to inform their constituents and states the directions are issued under the authority of the Foreign Exchange Management Act without prejudice to other legal permissions.

Rupee Drawing Arrangement approvals delegated to Regional Offices; AD Cat I banks must submit applications and annual review notes to ROs.
Regional Offices of the Reserve Bank are authorised to grant first time permissions for AD Cat I banks to enter into Rupee Drawing Arrangement (RDA) with non resident exchange houses; AD Cat I banks must submit the prescribed application to the Regional Office with jurisdiction over their registered office, may thereafter enter into RDAs subject to prescribed guidelines and must inform that Regional Office immediately. AD Cat I banks must also submit the Board approved annual review note on vostro accounts under RDAs by 30 June each year to the same Regional Office.

Foreign Direct Investment reporting: use NIC 2008 codes in FC GPR and FCTRS and include updated state/district codes.
Indian companies must classify activities using the National Industrial Classification 2008 and record NIC 2008 codes in Form FC-GPR for issues of shares and related instruments and in Form FCTRS for transfers; a uniform State and District code list for inclusion in Form FC-GPR is available on the Reserve Bank website, and Authorised Dealer Category I banks should inform their constituents.