Foreign currency rupee options allowed under conditions, enabling authorised dealers to offer plain vanilla hedges subject to regulator approvals.
Permission to offer foreign currency rupee options is granted subject to operational and prudential conditions: authorised dealers with minimum CRAR may offer the product back to back; dealers seeking to run option books must obtain one time approval and meet profitability, asset quality and net worth criteria. Only plain vanilla European calls and puts are initially permitted; customers may buy but not write options. Settlement may be by spot delivery or net cash rupee settlement; delta equivalents feed into position limits. Dealers must maintain mark to market, report weekly, follow ISDA documentation, and adhere to capital and risk management requirements.

Overseas direct investment procedures amended - revised forms and auditor certifications tighten documentary and valuation requirements.
Amendments revise documentary and certification requirements for overseas direct investment, modifying Form ODA and the statutory auditor certificate and issuing detailed instructions for Forms ODA, ODI, ODB and ODG. Key operative obligations include submission of auditor certificates, board resolutions and supporting project, financial and valuation documents; sectoral eligibility and prudential criteria for financial services investments; procedures for supplemental proposals and joint investor filings; and valuation and due diligence standards where ADR/GDR proceeds or acquisitions are involved.

Import compliance: authorised dealers must secure documentary evidence, follow FEMA and EXIM policy, maintain KYC and report defaults.
Authorised dealers must ensure import transactions comply with EXIM Policy, FEMA rules and RBI directions, follow KYC and banking practices, obtain prescribed forms and licences where applicable, and secure and verify evidence of import (Exchange Control copy of Bill of Entry or acceptable certificates) for remittances above specified thresholds; they must apply conditions for advance remittances and deferred payments, permit replacement imports and guarantees under stated conditions, and submit half yearly BEF statements to RBI for cases where documentary evidence is not received.

Foreign exchange purchases for SEZ supplies permitted: DTA units may acquire foreign exchange from authorised dealers to pay SEZ suppliers.
Permits units in the Domestic Tariff Area to purchase foreign exchange from authorised dealers to pay for goods supplied by Special Economic Zone units, extending a prior facility available to certain export production zones so DTA purchasers may make payments to SEZ suppliers in foreign currency through authorised dealers under FEMA exchange control powers.

Capital account liberalisation extended: overseas investment and related facilities continue until further notice under FEMA powers.
The Reserve Bank extends liberalised capital account facilities until further notice, covering overseas investments by corporates and individuals, NRI/PIO and foreign national facilities, ESOP acquisition of foreign securities, retention of ADR/GDR proceeds abroad, ECB fund parking, acquisition of immovable property overseas, and EEFC scheme extensions; authorised dealers are to inform constituents and formal amendments to the Foreign Exchange Management Regulations, 2000 will be issued under powers of the Foreign Exchange Management Act, 1999.

International credit cards: residents may use foreign currency accounts or direct bank remittances to pay card charges, subject to usage restrictions.
Resident individuals with foreign currency account(s) may obtain international credit cards issued abroad and may meet card charges from those accounts or by remittances from India through a bank where they hold a current or savings account; such remittances must be sent directly to the card issuing agency and not to third parties. Credit limits are set by issuing banks and there is no monetary ceiling imposed by the regulator. Existing prohibitions on use of cards for certain transactions remain applicable, and authorised dealers must notify constituents.

Rejection risk insurance premiums permitted for seafood and perishable food exporters to be remitted to foreign insurers.
Authorised dealers may permit remittance of premiums to foreign insurers for Rejection Risk Insurance taken by exporters of sea-food and other perishable food/food products, following Central Government no-objection to such foreign-issued policies; directions issued under FEMA Sections 10(4) and 11(1).

Repatriation rights for NRIs/PIOs: loan repayments in foreign exchange permit repatriation of residential sale proceeds.
Authorised dealers may allow repatriation of sale proceeds of residential immovable property acquired by NRIs/PIOs to the extent of consideration paid in foreign exchange or from NRE/FCNR accounts; repayments of rupee housing loans made by inward remittance or by debit to NRE/FCNR accounts are to be treated as equivalent to foreign exchange for repatriation purposes.

Permission to hire warehouses abroad subject to export-outstanding, turnover, realisation-period and routing conditions.
Authorised dealers may permit exporters to open or hire warehouses abroad provided the exporter's export outstanding remains within the prescribed proportion of prior year exports, the exporter satisfies the minimum export turnover requirement for the preceding year, applicable periods of realisation for status and non-status exporters are complied with, and all transactions flow through the authorised dealer's designated branch; permissions are initially for one year, renewable subject to continued compliance, and dealers must record approvals.

Non-Resident Deposits Reporting required monthly via NRD-CSR electronic return by authorised dealers to central bank
Authorised dealers must submit monthly non-resident deposit data using NRD-CSR Version 1.6 in prescribed ASCII format; head offices must consolidate branch data and transmit the electronic file (including bank contact details) to the Reserve Bank's Department of Statistical Analysis and Computer Services by the prescribed monthly deadline. The circular supplies the record layout and code tables for deposit schemes, maturities, currencies and record types, and advises that duplicate reporting must be avoided.

Forward contract expansion allows hedging of FDI inflows, foreign currency INR settlements, and cross currency FCNR(B) balances.
Non-resident investors may book forward sale contracts with Authorised Dealers to hedge currency risk on proposed FDI after completing required approvals; tenors limited to six months unless Reserve Bank permission is obtained, cancellations cannot be rebooked, and exchange gains on cancellation will not be passed to the investor. Residents may obtain forward cover for foreign currency denominated transactions settled in Indian rupees, with cash settlement by cancellation at maturity and no rebooking of cancelled contracts. FCNR(B) depositors may book cross currency forwards to convert permitted foreign currency balances; cancelled contracts are ineligible for rebooking.

Overseas investment liberalisation: permission for Indian corporates, individuals and mutual funds to invest in rated foreign securities.
Indian corporates and resident individuals are permitted to invest in equity of listed foreign companies holding at least ten percent in Indian listed firms and, additionally, in rated bonds and fixed income securities subject to specified credit ratings and applicable ceilings. Indian mutual funds with SEBI approval are granted general permission to invest in ADRs/GDRs and rated instruments without separate Reserve Bank approval; monthly reporting obligations to the Reserve Bank remain in force and regulatory amendments to FEMA 2000 will be issued.

Capital account liberalisation: mandatory reporting and database obligations for authorised dealers alongside clarified overseas investment restrictions.
Authorised dealers must implement a reporting mechanism and obtain declarations to maintain a uniform database recording investor identity and transaction particulars (including PAN, remittance amounts and dates, scrip details, purchase/sale dates, brokerage and net balance held abroad). Designated branches must forward monthly statements compiled from this database in the prescribed format for each investor category to the Reserve Bank by the tenth of the succeeding month. Permitted remittances include initial registration fees to overseas brokers; investments are confined to cash equity purchases in listed companies subject to specified conditions, while money market funds, bank deposits, investments with borrowed funds, lending of acquired securities, and certain investments routed through SPVs or in specified foreign entities are not permitted.

Housing loans in rupees for NRIs/PIOs permitted for acquisition and for repairs or renovation of owned residences.
Authorised dealers and National Housing Bank-approved housing finance institutions may provide housing loans in rupees to Non-Resident Indians and Persons of Indian Origin for acquisition of residential accommodation in India, and may also grant loans for repairs, renovation or improvement of residential accommodation owned by them; authorised dealers are to notify constituents and the directions are issued under the Foreign Exchange Management Act.

Export promotional allowance: authorised dealers may permit limited free exports subject to RBI referral and recordkeeping requirements.
Authorised Dealers may permit export of goods free of cost for export promotion by granting GR waivers to recognised exporters up to two per cent of the exporter's average annual exports during the preceding three years, subject to a ceiling of Rs.5 lakhs; non conforming applications should be referred to Reserve Bank regional offices. Authorised dealers must maintain records of permissions and notify constituents. Directions are issued under the Foreign Exchange Management Act, 1999.

Forward contract booking based on past performance permitted; higher limits available on application for proven corporates.
Authorised dealers may offer forward contracts based on a three year average of past import/export performance, subject to a cap on outstanding forwards relative to eligible limits; Reserve Bank may permit higher deliverable limits on application for large corporates without documentary evidence, upon submission through an authorised dealer of authenticated turnover, overdue realisations/payments and existing limits.

Foreign exchange risk management: RBI permits specified hedging and derivative dealings under exposure verification and reporting obligations.
Consolidates RBI directions under FEMA permitting authorised dealers to enter forward contracts and specified derivatives with residents, FIIs, NRIs and overseas parties subject to documentary verification, RBI conditions on cancellation/rebooking, board-approved risk policies, and prior approvals where required. Authorised dealers and banks may hedge asset-liability mismatches using interest rate/currency swaps, forward rate agreements and options subject to matching of value and maturity, marking-to-market, and approved limits. Detailed reporting and exposure-limit methodologies for net open positions, nostro/vostro balances and cross-currency derivatives are mandated to Reserve Bank.

Removal of time limit for export proceeds realisation empowers SEZ units to repatriate export value subject to procedural compliance.
SEZ units may repatriate export proceeds without any prescribed time limit while complying with GR/PP/SOFTEX procedures. They may undertake job work abroad with processing charges loaded into export price and ensured realisation arrangements. Gem and jewellery units and EOUs may accept specified precious metals as payment if contractually provided and values shown in export forms. Bilateral netting of export receivables against import payments is permitted subject to documentation, separate reporting, exclusion of ACU transactions, and submission of supporting documents. Equity issuance to non residents against import of capital goods is allowed with valuation committee verification and FC GPR reporting.

Continuation of foreign exchange relaxations under FEMA powers; authorised dealers to continue facilities until further notice.
Authorised dealers are informed that the relaxations and facilities set out in A.P. (DIR Series) Circular No.63 regarding risk management and inter bank dealings will continue until further notice; the directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999.

Special currency basket valuation updated; authorised dealers must apply revised rupee value under FEMA provisions.
The Reserve Bank of India circular fixes the rupee value of the special currency basket at Rs.57.5227 effective from March 11, 2003, following a change on March 7, 2003, and advises authorised dealers to apply the revised valuation for transactions under the Deferred Payments Protocols; the directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999.