Overseas borrowing permission: AD Category I banks may tap multilateral institutions without prior case by case RBI approval, subject to conditions.
AD Category I banks may borrow from international or multilateral financial institutions without seeking case by case Reserve Bank approval, where such institutions include bodies with multi government shareholding or Government of India participation. Borrowings must be for general banking business and not for capital augmentation, and are subject to the prudential conditions set out in the applicable A.P. (DIR Series) circular and the statutory framework under the Foreign Exchange Management Act.

Line of credit for export finance: government-backed LOC sets sourcing, reporting and remittance compliance for exporters.
Government-supported Line of Credit for procurement of defence vessels requires eligible exports under the Foreign Trade Policy, mandates that at least seventy-five percent of contract value (including consultancy) be supplied from India with limited foreign procurement for non-consultancy goods, prescribes distinct deadlines for opening letters of credit and disbursement depending on contract type, requires declaration of shipments on prescribed export forms, disallows agency commission under the LOC while permitting exporter-funded commission under prevailing remittance rules, and directs authorised dealers to inform exporters and obtain LOC details; directions issued under the foreign exchange management statute.

BEF reporting in XBRL requires online bank wise submission with single-format disclosure of large defaulted import remittances.
Move of BEF reporting to an electronic XBRL platform mandates online, bank wise submission for the half yearly periods ending June and December in a single prescribed format (Annex I) listing remittances for imports that lack supporting evidence after six months from remittance; AD banks must obtain portal credentials via the prescribed fill in form (Annex II).

External Commercial Borrowings for airline working capital extended under existing approval route conditions until end of March next year.
Permission to raise External Commercial Borrowings (ECB) for working capital by airline companies in the civil aviation sector is extended until March 31, 2016 on the same terms and conditions under the approval route; AD Category I banks must inform constituents. The Circular is issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and does not affect any other statutory permissions that may be required.

External Commercial Borrowings extension for affordable housing under approval route; scheme continues with existing terms and bank notification
Continuation of the scheme permitting External Commercial Borrowings (ECB) for low cost affordable housing projects under the approval route, on the same terms and conditions as earlier A.P. (DIR Series) Circulars; Authorised Dealer Category I banks to notify constituents. Directions issued under the Foreign Exchange Management Act and without prejudice to other statutory permissions.

NRI subscription to chit funds permitted on non-repatriation basis subject to Registrar authorization and banking channel rules.
Non-Resident Indians may subscribe to chit funds on a non-repatriation basis provided the Registrar of Chits or an authorised officer permits the chit fund to accept such subscriptions and the subscriptions are brought in through normal banking channels, including accounts in India. The Reserve Bank amended the applicable FEMA regulations to enable this change, and the circular is issued under the Foreign Exchange Management Act without prejudice to other legal permissions.

NRI definition expanded to include OCI/PIO cardholders and NRI investments under Schedule 4 FEMA treated as domestic investments.
The FDI policy now defines 'Non Resident Indian' to include Indian citizens resident abroad and Overseas Citizen of India cardholders, with Persons of Indian Origin cardholders deemed OCI cardholders, and provides that investments by NRIs under Schedule 4 of FEMA will be treated as domestic investment at par with resident investments.

Foreign investment approval threshold raised, shifting larger proposals from board review to cabinet-level consideration under revised FDI guidelines.
Revision increases the investment threshold determining which foreign equity proposals require Cabinet-level consideration; the Minister of Finance (in charge of FIPB) will consider FIPB recommendations up to the revised threshold, and recommendations above it are to be placed for consideration by the Cabinet Committee on Economic Affairs, with the FIPB Secretariat processing recommendations to obtain Minister of Finance and CCEA approvals.

Liberalised Remittance Scheme limit increased to expand permitted current and capital account remittances under compliance safeguards.
The Liberalised Remittance Scheme for resident individuals is revised so authorised dealers may permit remittances up to USD 250,000 per financial year for any permitted current or capital account transaction or a combination thereof, subsuming current account facilities under this overall limit while allowing exceptions for emigration, medical treatment and studies where higher amounts are required. Remitters must submit an application-cum-declaration; authorised persons must apply KYC and AML measures; banks must not extend facilities to facilitate capital remittances; remittances to FATF non-cooperative jurisdictions are prohibited.

Special Currency Basket valuation revised; authorised banks must apply the new rupee value and notify constituents promptly.
The Reserve Bank fixed a revised rupee value for the Special Currency Basket, superseding the prior notified value, to be applied from the circular's effective date for transactions under the Deferred Payment Protocols with the erstwhile USSR; Authorised Dealer Category I banks must apply the revised valuation and notify their constituents, with directions issued under FEMA without prejudice to other legal permissions.

Line of Credit local sourcing requirement: exporters must supply majority of contract value from India; EDF/SDF declarations required.
Notification of a government backed Line of Credit by Exim Bank for a Mali power transmission project sets sourcing rules requiring at least 75% of goods and services (excluding consultancy) to be supplied from India, prescribes EDF/SDF shipment declarations, disbursement and letter of credit cut off timelines, and disallows agency commission under the LOC while permitting exporters to use own funds or EEFC balances for commission subject to AD Category I bank realization and prevailing instructions; directions issued under sections 10(4) and 11(1) of FEMA.

ECB in Indian Rupees mobilisation via back-to-back swaps enables overseas lenders to fund INR loans; AD banks must verify documentation.
Recognised non-resident lenders may extend INR denominated ECBs by mobilising INR through a swap: the lender approaches an overseas bank which enters a back to back swap with an AD Category I bank in India. AD banks must obtain documentation (scanned acceptable) to verify the underlying INR ECB, take a one time KYC certification on the end client, retain records for RBI verification, ensure the swap continues only while the underlying ECB exists, and permit maturity settlement via the overseas bank's vostro account.

Rupee Drawing Arrangement: increased trade remittance cap and conditional regularisation subject to enhanced KYC and FATF compliance.
The circular increases the per transaction trade remittance limit under the Rupee Drawing Arrangement and permits Authorised Dealer Category I banks to regularise payments exceeding the prescribed limit if satisfied of the transaction's bonafides. Regularisation is subject to conditions: remittances must be from FATF compliant countries, banks must complete KYC/AML/CFT and other due diligence, review and report frequent high value senders, obtain additional information from correspondents, retain records for scrutiny, and ensure export proceeds received through RDA are applied to outstanding export finance with an exporter declaration.

Special currency basket valuation revised, requiring AD Category I banks to notify constituents and comply with FEMA directions.
The Reserve Bank revised the rupee valuation of the Special Currency Basket under the Deferred Payment Protocols, fixed with effect from April 30, 2015, and directed Authorised Dealer Category I banks to note and communicate the change to their constituents; directions are issued under the Foreign Exchange Management Act, 1999, without prejudice to other legal permissions.

Remittance of FCNR(B) funds: A2 form and physical presence are not required; banks should use technology to verify transactions.
A2 form filing is not required for remittance of funds from closure of FCNR (B) deposits because A2 applies to purchase of foreign exchange using rupee funds. Banks must not insist on the account holder's physical presence and should use technological alternatives to verify bonafides and ensure hassle free remittance. Authorised Dealer Category I banks must notify their constituents. Directions issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other legal permissions.

Export declaration requirement waived for EDI port shipments; Shipping Bill now deemed to satisfy export declaration obligations.
The requirement to file the Shipping Bill Declaration Form (SDF) for exports of goods or software is dispensed with where exports take place through EDI ports, because the statutory particulars of the SDF are subsumed in the Shipping Bill format; Authorised Dealers must notify constituents and the directions are issued under the regulator's statutory powers without prejudice to other permissions.

Line of Credit for infrastructure financing requires majority Indian supplies and prescribed export documentation under FEMA directions.
The Export-Import Bank's LOC for Nepal finances specified infrastructure projects on condition that eligible Indian exports supply at least 75% of contract value (50% for civil works), shipments be declared on prescribed export forms, and no agency commission is payable under the LOC though exporters may use own funds or EEFC balances for commission remittances subject to AD Category-I bank approval after realisation; directions issued under FEMA remain subject to other legal permissions.

Consolidated FDI Policy: rules for entry routes, sectoral caps, permitted instruments, reporting, and approval requirements for foreign investors into Indian companies.
The Consolidated FDI Policy sets the operative framework for foreign direct investment into Indian entities: definitions of FDI and investor classes; permitted investee entities and instruments; timelines, pricing/valuation and filing obligations for issue and transfer of securities; conditions for conversion of certain liabilities into equity; methodologies to compute direct and indirect foreign investment; entry routes via the Automatic or Government Route with sectoral caps and security/clearance conditions; FIPB composition and approval thresholds; prohibited sectors; and remittance, reporting and compliance requirements administered by RBI and Government.

Merchanting trade classification clarified: consignments to Nepal and Bhutan may qualify as traffic in transit if treaty compliant.
Goods acquired for merchanting trade must not enter the Domestic Tariff Area or be transformed, must be permitted under the prevailing Foreign Trade Policy, and must comply with export leg and import leg regulatory requirements (excluding Export Declaration Form and Bill of Entry). Where such goods are consigned to importers in Nepal and Bhutan from third countries through India under Customs Transit Declarations, they will qualify as traffic in transit if compliant with the India Nepal and Indo Bhutan Treaties of Transit.

Special Currency Basket valuation revised; authorised dealer banks directed to apply updated rupee value and notify constituents.
AD Category I banks are directed to adopt the revised rupee valuation of the Special Currency Basket with effect from the stated effective date and to notify their constituents; the instructions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and are without prejudice to other statutory permissions or approvals.