Export liberalisation: authorised dealers may approve caution-listed exporters' forms upon advance payment or irrevocable letter of credit.
Authorised Dealers may approve GR, PP, SDF and Softex forms of caution-listed exporters if the exporter produces evidence of an advance payment or a valid irrevocable letter of credit covering the full export value; approval is permissible for usance bills where the letter of credit permits such drawings and the usance bills mature within six months from shipment.

Automatic FDI route for residual activities retained, with regulatory amendments to follow and authorised dealers notified.
Automatic route access for foreign direct investment in residual activities remains available as before; authorised dealers are instructed to inform constituents, and regulatory amendments to the Foreign Exchange Management Regulations will be issued separately under the Foreign Exchange Management Act.

Direct receipt of import bills: RBI liberalises thresholds for authorised dealers to accept supplier sent documents, easing import remittances.
Reserve Bank of India liberalises the direct receipt of import bills/documents by raising the monetary thresholds that permit importers to receive supplier sent documents and for authorised dealers to make remittances against such bills. Eligible categories include wholly owned Indian subsidiaries of foreign companies, recognised trading/export houses, export oriented units, public sector undertakings and limited companies, and certain institutional imports (books, life saving drugs/equipment for hospitals, and reputed research institutions). Authorised dealers may allow direct bills outside these categories at the revised threshold only after satisfactory due diligence and obtaining supplier reports from overseas bankers or reputed credit agencies.

Amendments to Foreign Exchange Management Regulations notify authorised dealers of regulatory changes affecting derivatives, foreign loans, ODI, and property.
Amendments to the Foreign Exchange Management Regulations revise permissions and operational rules for cross border transactions in six areas: risk management and inter bank dealings and derivatives; forward cover for foreign institutional investors; foreign currency borrowing in India to holders of specified foreign currency deposits; liberalised overseas direct investment under the automatic route; acquisition of immovable property outside India by branches/trading offices; and enlargement of booking forward contracts. Authorised dealers are to inform constituents and the directions are issued under statutory authority of the Foreign Exchange Management Act.

Liberalised remittance limit for resident individuals permits annual outward transfers for current and capital account purposes.
Resident individuals may remit under a liberalised annual limit for any current or capital account purpose; they may acquire foreign assets and open foreign currency accounts abroad without prior central bank approval. Remitters must designate an AD branch, submit the prescribed application cum declaration certifying purpose and source of funds, and authorise debit. ADs must apply KYC and anti money laundering safeguards, verify account history or perform enhanced due diligence for new customers, ensure funds originate from the remitter, certify conformity with exclusions and report transactions to the Reserve Bank.

Investment by multilateral development banks in government securities permitted with repatriation and approved fund account payment options.
Authorization permits Multilateral Development Banks approved by the Government to purchase government dated securities, with payment by inward remittance or from an approved fund account; net sale proceeds after taxes may be remitted abroad or credited to the approved fund account, following amendments to the FEMA regulations.

Liberalised remittance facility enables repatriation of India-held assets for NRIs, PIOs and eligible foreign nationals under conditions.
The circular permits NRIs, PIOs and specified foreign nationals to repatriate India-held assets and proceeds for bonafide purposes, subject to documentary proof of acquisition, an undertaking and tax-compliance certification. Eligible funds include sale proceeds of immovable property, inherited assets, bank deposits, provident/superannuation balances, insurance maturities, and sale proceeds of securities. Repatriation must be routed through authorised dealers and banking channels; multiple instalments must use the same dealer. A 10-year holding requirement applies to immovable property acquired from rupee funds unless proceeds are traceably retained or reinvested; no lock-in applies to inherited or foreign-currency acquired property.

Exemption from declaration for low-value exports waives form filing while preserving repatriation and KYC obligations.
The circular waives the requirement to submit Form GR/SDF/PP/SOFTEX for exports of goods and software below a revised low-value threshold, while maintaining the exporter's duty to realise and repatriate foreign exchange. Authorised Dealers must apply KYC and verify source of funds before certifying receipts as export proceeds; reporting exemptions for such exports apply to designated half-yearly statements. The change is effective from the notified date and issued under the foreign exchange statutory powers referenced in the circular.

External Commercial Borrowings liberalisation permits corporate real sector ECB under automatic route, subject to maturity, cost and reporting rules.
The circular creates a two route framework for External Commercial Borrowings: an Automatic Route permitting corporates (excluding financial intermediaries) to raise ECB from recognised lenders for real sector and defined infrastructure investment subject to prescribed minimum average maturities, all in cost ceilings, end use prohibitions, security and parking rules; and an Approval Route for institutions and cases outside automatic limits, processed through authorised dealers and an RBI Empowered Committee. Reporting, loan registration prior to drawdown, disclosure on the RBI website, and extension of the regime to FCCBs are mandated.

FDI liberalisation in select sectors now permitted, subject to automatic or prior government approval and sectoral regulations.
Revision permits FDI up to 100% in specified sectors subject to route and regulatory conditions: printing scientific and technical periodicals (with prior Government approval and applicable legal framework), petroleum product marketing (automatic route subject to sectoral policy), oil exploration in small and medium fields (automatic route under Government private participation policy), petroleum product pipelines (automatic route subject to policy and regulations), and Natural Gas/LNG pipelines (with prior Government approval); this modifies Press Note 2 of 2000 accordingly.

Revision of special currency basket value notified, new rupee parity effective from January 2004 for authorised dealers.
Authorised Dealers are notified that the rupee value of the special currency basket was revised on December 29, 2003 and fixed at a new parity with effect from January 1, 2004; dealers must notify their constituents and apply the revised parity. The circular is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Establishment of branch offices in SEZs permitted for foreign companies where full FDI allowed, subject to stand alone and compliance conditions.
General permission is granted to foreign companies to establish branch offices or units in Special Economic Zones for manufacturing and services where full foreign direct investment is permitted and Part XI of the Companies Act is complied with. Such units must operate on a stand-alone basis confined to the SEZ and, on winding-up, must present to an Authorised Dealer an auditor's certificate addressing remittable amounts and liabilities, a tax clearance certificate, and confirmation of absence of legal impediments to remittance.

Removal of monetary ceiling for overseas investment permits companies and partnerships to invest up to net worth, with ODR reporting.
Removal of monetary ceiling permits resident companies and registered partnership firms to invest up to 100 percent of their net worth in overseas JVs/WOS without a separate monetary cap, subject to reporting in Form ODR; agricultural activities including purchase of land abroad are allowed directly or through overseas offices within the same net worth-based limit, with regulatory amendments to follow.