Non Resident Rupee account rules permit limited repatriation and specify eligible credits, debits, and documentary requirements.
Regulatory framework for Non-Resident Ordinary Rupee (NRO) Accounts prescribes eligible account types, permissible credits (inward remittances, foreign currency brought into India, transfers from non-resident rupee accounts, India-source income, sale proceeds, gifts/loans from residents within LRS limits) and debits (local rupee payments, remittance of India-source income, remittances for bona fide purposes subject to an overall annual ceiling, transfers to NRE accounts subject to tax). Repatriation of balances and sale proceeds is allowed within overall limits on production of documentary evidence and a Chartered Accountant's certificate; certain nationalities face restrictions and prior RBI permission may be required.

KYC/AML/CFT compliance required for money transfer service scheme participants, imposing eligibility, reporting, due diligence and collateral obligations.
Master Circular consolidates MTSS rules: eligibility and authorisation requirements for Indian Agents, due-diligence and supervisory standards for Overseas Principals, collateral arrangements and remittance/payment limits, mandatory procedures for appointment, monitoring and audit of Sub-Agents, and comprehensive KYC/AML/CFT obligations including customer identification, risk-based due diligence, enhanced measures for PEPs, record-keeping, and timelines/formats for Cash Transaction Reports and Suspicious Transaction Reports to FIU-IND, together with prescribed reporting to the Reserve Bank.

Import restrictions on gold: cash margin and documents against payment required, with limited loan based imports for eligible jewellery exporters.
Nominated banks, agencies and permitted trading houses may import gold only to meet genuine needs of gold jewellery exporters; Letters of Credit for such imports must have a 100 per cent cash margin and imports must be on Documents against Payment (DP) basis. Imports on DA or enabled by suppliers'/buyers' credit or on unfixed price terms must comply with the cash margin and DP discipline. Loan basis imports remain permitted solely for on lending to exporters of jewellery. AD Category I banks must ensure compliance and these directions are effective immediately.

FII Hedging Mandate: Banks must obtain sub account holder mandate and verify forward cover against market value.
Authorised Dealer Category I banks must verify periodically that forward cover outstanding for FIIs is backed by corresponding underlying exposures. If an FII hedges a sub account holder's exposure, the bank must obtain and verify a clear written mandate from the sub account holder and confirm the contract's eligibility by reference to the market value of securities in that sub account.

External commercial borrowings: eligible non-residents may provide credit enhancement for INR bonds; maturity reduced to three years.
Eligible non-resident entities may provide credit enhancement for INR-denominated bonds and debentures issued under the automatic ECB route by all borrowers eligible to raise ECBs automatically. Minimum average maturity for such instruments is reduced to three years, with prepayment and call/put options prohibited up to that period. If a guarantor meets the liability and foreign-currency repayment to the non-resident is permissible, prevailing all-in-cost ceilings for the relevant Trade Credit/ECB maturity will apply to the novated loan.

External Commercial Borrowings end-use expansion permits import of services and license fees subject to documentation and bank due diligence
Policy now treats import of services, technical know how and license fees as part of import of capital goods for manufacturing and infrastructure companies, permitted under the automatic or approval route provided there is a signed agreement, original invoice certified by the borrower, declarations that the expenditure will be capitalised and forms part of project cost, and that the AD Category I bank ensures the bonafides; other ECB conditions remain unchanged.

Project export filing deadline extended for post award approval, easing time to submit DPX1, PEX 1 and TCS 1.
Exporters undertaking Project Exports and service contracts must submit forms DPX1, PEX 1 and TCS 1 to the Approving Authority (Authorised Dealer/Exim Bank/Working Group) within thirty days of entering into the contract for post award approval; all other provisions of the PEM remain unchanged and the Directions are issued under the Foreign Exchange Management Act, 1999.

ECB in Renminbi scheme discontinued; authorized banks must notify constituents with immediate effect under foreign exchange authority.
The scheme permitting External Commercial Borrowings in Renminbi for infrastructure-sector Indian companies under an approval route and subject to an annual cap is discontinued from the date of the circular; AD Category I banks must notify their constituents and customers. The directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and are without prejudice to other legal permissions.

External commercial borrowings for civil aviation: working capital facility period extended and policy conditions unchanged; banks must notify customers.
The scheme permitting External Commercial Borrowings for working capital in the civil aviation sector is extended so eligible borrowers may continue to avail ECBs for working capital until December 31, 2013; all other ECB policy aspects remain unchanged. Authorised Dealer Category I banks must notify their constituents and customers of the circular, and the directions are issued under statutory powers without prejudice to permissions or approvals under other laws.

Buyback of FCCBs under approval route extended temporarily; banks must notify constituents and ensure compliance with FEMA directions.
Continuation of the buyback and prepayment scheme for Foreign Currency Convertible Bonds (FCCBs) under the approval route is authorized temporarily, with the existing approval-route mechanism extended and a firm discontinuation stipulated after the extension period; Authorized Dealer Category I banks must notify their constituents and customers. The directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and do not affect other statutory permissions or approvals.

ECB window extension permits refinancing of outstanding 3G spectrum rupee loans under the approval route, subject to existing conditions.
The circular affirms that initial payments for 3G spectrum may be met from Rupee resources and refinanced with long term External Commercial Borrowings under the approval route within the stipulated period; it further decides that the ECB window for refinancing outstanding 3G spectrum Rupee loans on telecom operators' books will remain open until a specified cutoff, with all other ECB policy aspects unchanged and AD Category I banks required to inform constituents.

External Commercial Borrowings for affordable housing: revised eligibility and operational conditions permit ECB under approval route with capped allocation.
Revision permits ECB for low cost affordable housing under the approval route with modified eligibility and operational conditions: developers must have three years' experience and a good track record; the paid-up capital requirement for HFCs is withdrawn while a Net Owned Funds threshold for HFCs of Rs. 300 crore for the past three years remains. Aggregate annual ECB allocation under the scheme is capped and ECB must be swapped into rupees on a fully hedged basis. NHB shall fix reasonable on lending spreads and certify that ECB proceeds finance prospective owners under prescribed unit cost, loan amount, and carpet area limits.

Special currency basket value revised under FEMA; authorised dealer banks must apply the new rupee conversion rate for settlements.
Revision of the rupee value of the special currency basket for settlement under the Deferred Payment Protocols is fixed and must be applied by Category I Authorised Dealer banks from the stated operative date; banks are to notify constituents and implement the revised rate. The directions are issued under the Foreign Exchange Management Act and without prejudice to other statutory permissions or approvals.

Foreign investment limit for government securities expanded for SEBI registered long term investors; SEBI to issue operational guidelines.
The Reserve Bank increased the permissible foreign investment ceiling in government dated securities for SEBI registered long term investors - including sovereign wealth funds, multilateral agencies, pension, insurance and endowment funds, and foreign central banks - for purchases on a repatriation basis, while retaining all other existing investment conditions; SEBI will issue operational guidelines and AD Category I banks must inform their constituents; directions are issued under sections 10(4) and 11(1) of FEMA.

Foreign Direct Investment reporting: FVCI investments under the FDI scheme use FC GPR/FC TRS; Schedule VI uses custodian reports.
Investments by SEBI registered FVCIs under the FDI Scheme must be reported only in form FC GPR or FC TRS as applicable, while investments under Schedule VI are not to be reported in FC GPR/FC TRS but are to be reported by the custodian bank in the monthly custodian reporting format; receipt of consideration and transfers carry 30 day and 60 day reporting timelines respectively through Authorised Dealer Category I banks.

Export remittance threshold increased for online payment gateway receipts enabling greater per-transaction repatriation under AD Category I arrangements.
AD Category I banks are permitted to repatriate export-related receipts collected through standing arrangements with Online Payment Gateway Service Providers up to USD 10,000 per transaction (revising the prior USD 3,000 limit), effective immediately; all other terms of earlier A.P. (DIR Series) circulars continue to apply, and the directions are issued under Sections 10(4) and 11(1) of FEMA, 1999, following amendment by Notification No. FEMA.274/2013-RB.

Export repatriation period for SEZ units tightened; full export proceeds must be repatriated within prescribed time, with extensions case by case.
Units in Special Economic Zones must realize and repatriate the full value of exports to India within twelve months of export, subject to case by case extensions by the Reserve Bank. The requirement is effective immediately for a one year period subject to review, implemented by amendments to the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, and AD Category I banks are to inform their constituents. Directions issued under Sections 10(4) and 11(1) of FEMA, 1999 remain without prejudice to other legal permissions.

FDI conditions for multi-brand retail require dedicated back-end greenfield investment and company owned front-end stores, and restrict e commerce.
FDI in multi brand retail requires 30% sourcing of manufactured or processed goods from small industries (Plant & Machinery investment cap USD 1 million), applicable only to front end store sales and excluding fresh produce. At least 50% of FDI must be additional greenfield investment in back end infrastructure; acquisitions or equity stakes in existing infrastructure do not count. Front end stores must be company owned and company operated; multi brand retail by e commerce and wholesale/B2B activity by the same entity are not permitted. State laws apply and States may impose additional conditions.

Group company definition expanded to include control over voting rights or board appointments, effective immediately under FDI policy
Definition of group company added to the Consolidated FDI Policy: two or more enterprises are a group where one can, directly or indirectly, exercise a specified threshold of voting rights in another enterprise or appoint a majority of its board members; the amendment takes immediate effect.

Gold import restrictions: consignment limited to exporters; LCs require full cash margin and imports on payment only.
Consignment imports of gold by nominated banks and agencies are allowed only to meet exporters' genuine needs. All Letters of Credit for gold imports must be on 100 per cent cash margin, and all imports must be on Documents against Payment; Documents against Acceptance are not permitted. The instructions are effective immediately and issued under the Foreign Exchange Management Act, 1999.