Short-term term deposits permitted for foreign branch accounts, subject to temporary-surplus and utilization undertakings; excludes shipping and airline companies.
Authorised Dealers may open term deposits of up to six months for branches, project or liaison offices in India of persons resident outside India where the deposits arise from temporary surplus funds, provided the Authorised Dealer is satisfied as to the temporary nature and the branch/office gives an undertaking that maturity proceeds will be utilised for business in India within three months; facility excludes shipping and airline companies.

FDI in tea sector permitted with central approval and mandated divestment to Indian partners and state land-use consent.
The Government permits FDI up to 100% in the tea sector, including plantations, subject to prior Central Government approval; applicable to fresh investments from the date of notification. Such investments must effect compulsory divestment of a portion of equity to an Indian partner or the Indian public within five years, and obtain prior State Government approval for any future land use change. The measure modifies Press Note No. 2 (2000 series).

Prohibition on foreign investment: complete ban on FDI and foreign technology collaboration in lottery, gambling and betting.
Complete prohibition bars foreign capital and collaborative technology engagement in the lottery, gambling and betting sector. This includes a ban on foreign direct investment, portfolio and non resident/OCB investments, foreign venture capital participation, and any foreign technology collaboration such as franchise, trademark, brand licensing or management contracts for government or private lotteries, online lotteries, casinos and related activities.

Foreign direct investment permitted full automatic entry in advertising and film sectors; prior sectoral conditions removed for film.
Foreign Direct Investment policy has been revised to permit 100% FDI on the automatic route in the advertising sector, and to confirm that up to 100% FDI in the film sector on the automatic route will no longer be subject to the previously prescribed conditions I-V concerning track record, minimum paid up capital, minimum foreign equity investment, debt equity limits, and dividend balancing. Press Note No. 2 (2000 series) is modified accordingly.

Extended export realisation period expanded to include aluminium, petroleum, sugar and foodgrains for eligible exporters.
Manufacturer exporters with export contracts of Rs.100 crore and above in one year may be allowed up to 365 days from date of shipment for realisation and repatriation of full export value; the facility is extended to include aluminium, petroleum products, sugar and foodgrains and is available to merchant exporters/traders, issued under the Foreign Exchange Management Act and to be communicated by authorised dealers.

Repatriation from NRO accounts permitted for education, medical and long-held property sale proceeds subject to conditions.
Authorised Dealers may allow repatriation from NRO account balances held by NRIs/PIOs for specified purposes without prior Reserve Bank approval: to meet education expenses for children (annual limit), to meet medical expenses of the account-holder or family members (limit), and to remit sale proceeds of immovable property held for at least ten years subject to applicable tax payment and an annual ceiling.

Foreign currency accounts abroad: Indian entities may hold accounts for overseas offices for normal business operations subject to RBI conditions.
Maintenance of foreign currency accounts abroad by Indian entities is permitted for overseas offices, branches or representatives for normal business operations, subject to conditions including prohibition on creating liabilities for the head office, repatriation of surplus funds unless RBI approval is obtained, reporting of the overseas bank account to the authorised dealer, and specified repatriation and reporting requirements for software exporter contracts.

Use of international credit cards allowed for lawful foreign-exchange purchases; prohibited for restricted items and governed by export payment rules.
Clarifies that credit cards, ATM cards and debit cards are treated as currency under foreign exchange rules; international credit cards may be used online for transactions for which foreign exchange can lawfully be purchased, but not for prohibited items or services. Debit and ATM cards may be used for permitted foreign-exchange purchases. Authorised dealers are permitted to accept export payments by debiting an importer's credit card irrespective of the importer's presence in India, where reimbursement will be received in foreign exchange.

Line of credit financing supports export contracts with buyer advance, LC-backed staged payments and inspection requirements.
Exim Bank has provided a foreign currency line of credit to Bancoldex to finance exports of listed Indian goods and related services, subject to Exim Bank approval, U.S. dollar pricing, a minimum contract value, a buyer advance and payment of the balance under an irrevocable letter of credit. Financing covers the major portion of the contract value with pre-shipment inspection and inspection certificates required. Negotiating banks may pay beneficiaries in Indian Rupees against compliant documents and be reimbursed by Exim Bank in U.S. dollars; bank charges in India are borne by the seller and those in the borrower's country by the buyer.

Overseas direct investment reporting now mandates revised ODR filings and removes ODA forwarding for automatic route investments.
Authorised dealers are no longer required to forward form ODA and supporting documents to the Reserve Bank for overseas direct investments made under the automatic route; they must continue to receive and scrutinise ODA from Indian parties. All remittances, guarantees, and capitalisations related to overseas direct investment-whether automatic-route or Reserve Bank approved-must be reported to the Reserve Bank using the revised form ODR addressed to the Chief General Manager, Exchange Control Department, Overseas Investment Division, Mumbai. Amendments to the underlying Regulations will be notified separately.

Special currency basket valuation changed; rupee value fixed and authorised dealers instructed to notify constituents under FEMA authority.
A change in the valuation of the special currency basket was effected on 6 May 2002, and the rupee value of that basket was fixed with effect from 9 May 2002. Authorised dealers are directed to notify their constituents of this revised rupee valuation. The directions are issued under the issuer's statutory exchange-control powers to fix valuation and prescribe compliance instructions for foreign exchange dealings.

Prohibition on remittances for lottery participation: residents and intermediaries face liability; authorised dealers must publicise restrictions.
Payments toward lotteries, money circulation schemes or prize/award payments are prohibited under foreign exchange rules whether made by residents by any mode or by non residents on residents' behalf; residents effecting or causing such remittances, directly or indirectly, may be proceeded against, and authorised dealers must widely publicise and enforce the prohibition.

Letter of Credit refinancing enables exporters to secure full contract-value financing in US dollar contracts with specified bank procedures.
Exim Bank's US dollar Letter of Credit Refinancing Facility with Bank Markazi allows refinancing of letters of credit for eligible exports to Iran, requires contracts in US dollars and a minimum LC size, prescribes designated issuing and advising/negotiating banks and a documentary flow where advising banks forward non-negotiable conforming documents to Exim Bank for reimbursement, mandates a specified LC clause and refinancing tenor, requires GR/SDF/SOFTEX declarations with a prescribed superscription, limits agency commission except in specified after-sales-service cases subject to prior approval, and is issued under the Foreign Exchange Management Act.

Foreign exchange waiver allows SEZ units to remit premiums abroad for general insurance when paid from their foreign exchange balances.
Units located in Special Economic Zones are exempted from the prohibition on taking general insurance from insurers outside India for the limited purpose of permitting authorised dealers to allow remittances of premiums to non resident insurers, provided such premiums are paid by the units out of their foreign exchange balances; authorised dealers must bring this facilitation to the notice of constituents and ensure compliance with applicable FEMA powers.

Special currency basket value revised; authorised dealers must apply the updated rupee valuation and limits.
Revision of the rupee valuation for the special currency basket under the Deferred Payments Protocols with specified lower and upper limits; authorised dealers are instructed to implement the updated valuation and notify their constituents. The directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Repatriation of current income permitted for NRIs on Chartered Accountant certification ensuring eligibility and tax compliance.
Authorised dealers may permit repatriation of current income of NRIs (such as rent, dividend, pension, interest) even if the NRI lacks an NRO account, on the basis of a Chartered Accountant's certification that the remitted amount is eligible and that applicable taxes have been paid or provided for; dealers must notify constituents and implement the measure under the Foreign Exchange Management Act, 1999.

Remittance for foreign television advertising requires regulatory checks; authorised dealers must verify exporter eligibility and foreign broadcast.
Remittance for advertising on foreign television requires Reserve Bank prior approval where the remitter's export earnings do not meet the prescribed threshold in each of the two preceding years, unless payment is from an EEFC account. If prior permission is not required, authorised dealers must obtain a Chartered Accountant's certificate confirming the exporter meets the export-earnings criterion and that the advertisement will be broadcast abroad rather than solely in India.

Overseas direct investment branch designation permits authorised dealers to centralise foreign exchange transactions for such investments.
Authorised dealers may designate selected branches to undertake foreign exchange transactions relating to Indian direct investment in overseas joint ventures or wholly owned subsidiaries; a list of such branches must be forwarded to the Reserve Bank's Exchange Control Department, Overseas Investment Division, for record, and authorised dealers should notify their constituents of the arrangement. The directions are issued under the statutory powers conferred by the foreign exchange law.

Nostro account 'Tom' funding: extended application submission time under foreign exchange controls permits later filing before value date.
Authorised dealers may book transactions in their ACU Dollar (Nostro) accounts on a 'Tom' settlement basis by submitting applications to the Department of External Investments and Operations at the Central Office in Mumbai; the submission deadline for such applications is extended to 4 p.m. on the business day preceding the value date, replacing the earlier 3 p.m. requirement.

Crystallisation of foreign exchange liability allows banks to convert ECB guarantee obligations into rupees after application.
Authorised dealers may convert foreign exchange liabilities arising from guarantees or letters of comfort for External Commercial Borrowings into Rupees in select cases where circumstances warrant; they must apply to the Chief General Manager, Exchange Control Department, External Commercial Borrowings Division, Reserve Bank of India, providing full particulars including borrower name, amount, maturity, circumstances of invocation, date of default, impact on overseas branch liabilities and other relevant factors.