Line of credit terms impose sourcing, documentation and disbursement timelines for Exim Bank-supported project and supply contracts.
Exim Bank's Line of Credit finances eligible Indian goods, services, machinery, equipment and consultancy for an 18 MW power project in Comoros, requiring at least 75% of contract value to be supplied from India and permitting up to 25% procurement from abroad; shipments must be declared on GR/SDF forms, Letters of Credit and disbursement must meet specified timelines for project and supply contracts, no agency commission is payable under the LOC though exporters may use their own or EEFC funds subject to AD Category I bank compliance, and these directions are issued under FEMA without prejudice to other statutory approvals.

Special Currency Basket valuation: banks must apply updated Rupee value and notify constituents under FEMA directions.
The circular notifies a revision of the Rupee valuation of the Special Currency Basket under the Deferred Payment Protocols and directs Authorised Dealer Category I banks to apply the revised valuation from the stated effective date and to inform their constituents; the directions are issued under FEMA and without prejudice to other statutory permissions.

Export allocation requirement mandates a portion of imported gold reserved for exporters; domestic sales only against full upfront payment.
Imports of gold by nominated banks, agencies and other authorised entities are governed by a mandate that at least twenty percent of each consignment be reserved exclusively for exporters and the balance for domestic use; coins and medallions are prohibited. Domestic supply is limited to jewellery businesses, bullion dealers and banks authorised under the Gold Deposit Scheme and must be made against full upfront payment. Customs and refineries will monitor allocation and compliance, gold dore imports require DGFT licence, and front loading is restricted with prior RBI approval required for entities lacking exporter supply history.

Liberalised Remittance Scheme limit reduced; remittances capped, foreign property acquisition barred, and JV/WOS allowed with conditions.
The Liberalised Remittance Scheme ceiling for resident individuals is immediately reduced to a lower per financial year cap; AD Category I banks may allow remittances only up to that cap for permitted current or capital account transactions. The Scheme cannot be used for acquisition of immovable property abroad and remains barred for prohibited or illegal activities. Resident individuals may set up Joint Ventures or Wholly Owned Subsidiaries abroad for bonafide business within the cap subject to conditions in the cited FEMA notification, and gift and rupee loan limits to NRI close relatives are aligned with the revised cap.

Overseas direct investment limit tightened under the Automatic Route; excess investment now requires Reserve Bank approval.
The Circular imposes a net-worth-based ceiling on overseas direct investment under the Automatic Route, restricting aggregate ODI by an Indian party in its JVs and WOSs abroad to an amount equal to the investor's net worth per the last audited balance sheet; excess ODI requires Reserve Bank approval under the Approval Route. The same ceiling applies to investments into overseas unincorporated entities in the energy and natural resources sectors. Existing exemptions continue for certain Navaratna PSUs and designated national oil companies for government-approved oil-sector investments; the changes apply prospectively to new proposals.

Line of Credit conditions require a substantial majority of supplies from India and set prescribed L/C and disbursement timelines.
Exim Bank granted a Line of Credit of USD 300 million to Ethiopia for the Asaita-Tadjourah railway to finance eligible goods, machinery, equipment and services from India, subject to a local content requirement that a substantial majority of contract value be supplied from India. The Agreement (executed June 13, 2013; effective July 15, 2013) sets distinct L/C and disbursement timelines for project exports and supply contracts, requires GR/SDF shipment declarations, disallows agency commission under the LOC while permitting exporter-funded commission remittances subject to AD bank compliance, and is issued under FEMA authority.

Line of Credit conditions require majority Indian sourcing, prescribed disbursement timelines, shipment declarations and FEMA compliance.
Exim Bank's LOC to Zimbabwe finances eligible Indian goods, services, machinery and consultancy, requiring at least 75 per cent of contract value to be supplied from India and permitting up to 25 per cent sourced abroad. The Agreement is effective from July 25, 2013, with specified LC/disbursement timelines for project and supply contracts, mandatory GR/SDF shipment declarations, prohibition of agency commission under the LOC (subject to exporter-funded remittance rules), and compliance and notification obligations for Authorised Dealer Category-I banks under sections 10(4) and 11(1) of FEMA.

Compounding of contraventions under FEMA: NEFT refunds for returned fees and mandatory bank mandate, PAN and activity code requirements.
Compounding applications under the Foreign Exchange Management Act must be filed only after transactions are complete and approvals obtained; compounding fees for returned applications will be refunded by NEFT, for which applicants must submit a prescribed bank mandate and account details. Revised annexes require income tax PAN and NIC (1987) activity codes, and applications missing these details will be treated as incomplete. Applicants must notify any change in contact information during pendency, and Authorised Dealers must inform their constituents of these requirements.

XBRL-based NRD-CSR reporting required for non-resident deposit returns; banks must adopt RBI template or compatible tools and test.
Banks must migrate monthly NRD-CSR reporting to an XBRL-based platform using either the RBI NRD-CSR template from the Online Reporting Facility or compatible third-party/in-house XBRL tools to generate instance (.xml) documents. The revised NRD-CSR format, codes and validation checks are provided; banks must capture XBRL-compliant NRD-CSR data from October 1, 2013 and continue to submit returns by the 10th of the month following the reporting month. A test environment, credentials, manual, training and helpdesk support will be provided.

Mandate requirement for hedging: FIIs must obtain PN/ODI holder authorisation before entering rupee hedge contracts.
If an FII wishes to hedge rupee exposure relating to securities against which it has issued Participatory Notes or Overseas Derivative Instruments, it must have a mandate from the PN/ODI holder; Authorised Dealer Category I banks must verify such mandates or, if verification is difficult, may accept a declaration from the FII describing the PN/ODI structure and confirming hedges are undertaken pursuant to specific client mandates.

Reporting of unhedged foreign currency exposures: authorised dealer banks must file quarterly returns via XBRL under FEMA directions.
Authorised Dealer Category I banks must submit a prescribed quarterly statement of corporates' foreign currency exposures and hedges based on bank books in a revised format, filed online only through the Extensible Business Reporting Language (XBRL) system; directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Line of Credit conditions require majority India-sourced supplies, specified shipment and disbursement timelines and regulatory compliance.
The Exim Bank Line of Credit for the Senegal Fisheries Development Project finances eligible exports under India's Foreign Trade Policy and requires that at least 75 percent of the contract price be supplied from India with up to 25 percent procured externally. The Credit Agreement fixes separate windows for opening Letters of Credit and disbursements for project exports and for supply contracts. Shipments must be declared on GR/SDF forms; agency commission is not payable under the LOC though exporters may use own resources or EEFC balances; AD Category I banks must ensure compliance and inform exporters.

Import of gold requirements: nominated importers must allocate portions for export and retain bonded stock before further imports are allowed.
Nominated banks and agencies importing gold must allocate a minimum portion of each import lot exclusively for export, link such imports to exporter financing, and restrict domestic distribution to jewellery businesses and bullion dealers; the same portion must be retained in customs bonded warehouses. Fresh imports are permitted only after a specified share of bonded stock has been exported; the 20/80 principle applies to all import schemes and prior consignment and LC restrictions are withdrawn. SEZs and EoUs may import solely for exports; AD Category I banks are responsible for monitoring compliance under FEMA.

Realisation and repatriation period for export proceeds temporarily shortened; SEZ and overseas warehouse rules remain unchanged.
The time allowed for realisation and repatriation of the full export value of goods or software exported is to be reckoned as nine months from the date of export for exports from April 1, 2013 to September 30, 2013. Provisions for units in Special Economic Zones and exports to warehouses outside India remain unchanged. Category I Authorised Dealer banks must inform constituents. Directions issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Line of Credit conditions require majority Indian supply, GR/SDF export declarations and FEMA compliance by exporters and banks.
Exim Bank's Line of Credit to Ghana finances eligible exports for a sugar-plant project; at least 75 percent of contract value must be supplied from India while up to 25 percent may be procured abroad. The LOC is effective from June 27, 2013 with prescribed last dates for opening LCs and disbursement tied to contract completion or a fixed period from execution. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission remittance after full realization, subject to prevailing rules. Directions issued under FEMA sections 10(4) and 11(1).

External commercial borrowings: scheme permits ECB for repayment of rupee loans and rupee capital expenditure linked to overseas JV/WOS.
The ECB scheme is extended to Indian companies with overseas JV/WOS/assets, allowing ECB under the Approval Route for repayment of term Rupee loans (average residual maturity five years or more) and for Rupee capital expenditure. ECB eligibility is capped by the higher of 75% of past three years' average foreign exchange earnings or 75% of assessed average potential forex earnings for the next three years from the overseas operations, certified by prescribed professionals. ECB must be repaid out of forex earnings remitted from those overseas JV/WOS/assets; past dividends, repatriated profits and other forex inflows are counted as such earnings.

All-in-cost ceiling for External Commercial Borrowings extended until end of September, remaining subject to review and compliance.
The all-in-cost ceiling for External Commercial Borrowings is extended as the operative cap through September 30, 2013, subject to review; all other ECB policy provisions remain unchanged and Authorized Dealer Category-I banks are to inform constituents. The directions are issued under the Foreign Exchange Management Act and do not affect permissions required under other laws.

External Commercial Borrowings policy continues; refinancing and rescheduling instructions remain operative and must be conveyed to authorised dealer banks.
External Commercial Borrowings refinancing and rescheduling instructions continue to apply pending review; all other ECB policy aspects remain unchanged. Authorised dealer banks must notify constituents and customers of the continued applicability. Directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 without prejudice to other statutory permissions.

All-in-cost ceiling for trade credits remains in force and financing periods must align with the operating cycle.
The existing all-in-cost ceiling for trade credits for imports will continue to apply until review; Category-I authorised dealer banks must ensure trade credit periods are linked to the operating cycle and the trade transaction, maintain strict compliance, and note that all other aspects of trade credit policy remain unchanged, with directions issued under the Foreign Exchange Management Act and without prejudice to other statutory permissions.

General permission for overseas acquisition of SWIFT shares by Indian banks upon SWIFT User's Group membership.
A bank in India licensed under the Banking Regulation Act is granted general permission to acquire SWIFT shares per SWIFT by laws, provided the bank has Reserve Bank permission for admission to the SWIFT User's Group in India as a member; this replaces case by case approvals and is effective immediately, with AD Category I banks to inform constituents, without prejudice to other statutory permissions.