FINnet gateway reporting requires MTSS Indian agents to submit XML reports and cease CD-format submissions.
Authorised Persons who are Indian agents under the Money Transfer Service Scheme must submit reports to the FINnet Gateway in the prescribed XML format and discontinue CD-format submissions; FIU-IND will not treat CD submissions received after the transition date as valid, and the directions are issued under FEMA and PMLA statutory powers.

Reporting obligation via FINnet Gateway: authorised persons must use XML uploads; CD submissions will be invalid.
Authorised persons must submit reports to FIU IND via the FINnet Gateway in the new XML format; CD submissions will not be treated as valid after the gateway's go live date. Compliance with FIU IND procedures and use of the help desk for assistance is required. The directions are issued under the Foreign Exchange Management Act, 1999 and the Prevention of Money Laundering Act, 2002 and applicable rules, without prejudice to other statutory permissions.

Cross-border inward remittance AML/CFT: Indian MTSS agents must apply international guidance and ensure sub-agent compliance and due diligence.
Authorised Persons (Indian Agents) under the Money Transfer Service Scheme must consider the international statement on jurisdictions with AML/CFT deficiencies, apply enhanced scrutiny and proportionate counter-measures to mitigate ML/TF risks, ensure Sub-Agents comply with these measures, and communicate the circular's contents to constituents; directions are issued under statutory foreign exchange and anti-money-laundering laws and do not preclude legitimate transactions.

AML/CFT compliance: authorised persons must apply FATF high-risk jurisdiction guidance and strengthen risk-based safeguards.
Authorised persons in money-changing activities must consider the FATF October 2012 statement identifying jurisdictions with strategic AML/CFT deficiencies and apply risk-based measures and enhanced scrutiny for relationships or transactions involving those jurisdictions. The guidance applies mutatis mutandis to agents and franchisees, with franchisers responsible for compliance, and is issued under the Foreign Exchange Management Act and the Prevention of Money Laundering Act.

ECB limit increase for NBFC IFCs: higher automatic borrowing cap with approvals required beyond the cap and reduced hedging.
The circular raises the permitted ECB ceiling for NBFC IFCs under the automatic route as a proportion of owned funds while borrowings beyond that ceiling require Reserve Bank approval under the approval route. End use remains confined to on lending to infrastructure and other ECB conditions are unchanged. The currency risk hedging obligation for NBFC IFCs is reduced to a lower specified proportion of exposure. Authorised Dealer Category I banks must certify compliance and continue to certify leverage ratios for approval route proposals. The amendments are effective immediately under FEMA authority.

KYC address verification eased: identity document with matching address accepted as proof of identity and address for money changing.
Where the address on a prospective customer's identity document matches the customer's declared current address, the document may serve as proof of both identity and address; otherwise a separate proof of address must be obtained. The instruction eases customer compliance, leaves other KYC/AML requirements unchanged, applies to agents and franchisees with franchisers responsible for their compliance, and requires Principal Officer acknowledgement.

Know Your Customer norms allow an identity document to serve as both ID and address proof for money transfers when addresses match.
Where the identity document submitted by a prospective customer under the Money Transfer Service Scheme shows the same address as the customer's declared current address, that document may be accepted as proof of both identity and address; if the address differs, a separate proof of address must be obtained. These instructions supplement existing KYC/AML/CFT requirements, apply equally to Sub Agents with Indian Agents responsible for compliance, and require Principal Officer acknowledgment of the circular.

Softex procedure revision allows eligible software exporters to submit consolidated electronic statements under revised compliance rules.
The revised Softex procedure, extended with immediate effect to SEZs, EPZs, 100% EOUs and DTAs, aligns these units with the earlier STPI process and allows exporters meeting specified turnover or filing-volume eligibility to submit consolidated export declarations in prescribed excel formats (Annexures A & B). Authorised Dealer Banks are to inform constituents; the directions are issued under the Foreign Exchange Management Act and do not affect other statutory permissions.

Line of Credit enables India origin exports to Mozambique subject to sourcing, disbursement timelines and FEMA compliance.
A Line of Credit (LOC) of USD 250 million from Exim Bank to Mozambique finances eligible exports from India; at least 75% of contract value must be supplied from India, with up to 25% procured externally. The Credit Agreement is effective from December 26, 2012; LCs and disbursements are allowed up to 48 months from scheduled completion for project exports and 72 months from execution for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may remit commission from their own funds or EEFC balances after realisation, subject to remittance rules. Directions issued under FEMA.

Line of Credit conditions: export supply must be predominantly from India and compliance required under FEMA directions.
Exim Bank's Line of Credit to Guyana finances eligible goods, services and consultancy for a multispecialty hospital with at least 75 per cent of contract value supplied by Indian sellers and up to 25 per cent (excluding consultancy) procured abroad. The Credit Agreement is effective December 20, 2012, with prescribed last dates for Letters of Credit and disbursement; shipments must be declared on GR/SDF Forms. No agency commission is payable under the LOC, though exporters may use their own resources or EEFC balances for commission subject to remittance rules. AD Category-I banks must notify exporters; directions issued under FEMA.

ECB hedging requirement: MFIs and NGOs must fully hedge external borrowings; authorised banks ensure compliance at drawdown.
Extant ECB guidelines continue to apply to MFIs and NGOs accessing External Commercial Borrowings under the Automatic Route, and such ECBs must be fully hedged. Designated Authorised Dealer Category I banks are required to ensure at the time of drawdown that the borrower's forex exposure is fully hedged and to notify their constituents; the directions are issued under the foreign exchange statutory framework without prejudice to other required approvals.

Line of Credit enables financing of eligible Indian exports under sourcing and compliance conditions for a foreign government project.
Exim Bank's Line of Credit to the Government of Gambia finances eligible Indian exports, requiring at least 65 per cent of contract value to be supplied from India with up to 35 per cent procureable abroad. The Agreement is effective December 4, 2012, and provides differentiated periods for opening Letters of Credit and disbursement for project and supply contracts. 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 to pay commission subject to AD Category I bank permission after full realization. Directions issued under FEMA remain without prejudice to other statutory approvals.

External Commercial Borrowings for affordable housing permitted under approval route with NHB nodal role and specified borrower safeguards.
ECB are permitted under the approval route for low cost affordable housing and eligible slum rehabilitation projects where at least 60% of permissible FSI is for units up to 60 sq m. Developers and qualifying HFCs may borrow subject to detailed eligibility criteria, financial thresholds, loan caps to individual buyers, and mandatory full hedging into rupees. NHB is the nodal agency to certify project eligibility and may raise or on lend ECBs; FCCBs are prohibited and other ECB parameters remain applicable.

All-in-cost ceiling for external commercial borrowings remains extended until further review, maintaining existing ECB policy conditions.
Continuation of the all-in-cost ceiling for External Commercial Borrowings is directed to remain in force until March 31, 2013, subject to review; all other ECB policy aspects remain unchanged. The amended ECB policy takes immediate effect and AD Category I banks must inform their constituents. Directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act and are without prejudice to other statutory permissions.

Trade credit extension allows five-year finance for infrastructure capital imports, with relaxed initial contracting for existing credits.
Trade credit for infrastructure-sector companies is permitted up to five years for imports of capital goods (DGFT classified), provided the credit is contracted ab initio for the prescribed minimum period and AD Category I banks do not issue LC/guarantees/LoU/LoC for the extended period beyond three years; existing trade credits benefit from a temporary relaxation reducing the abinitio contracting minimum from fifteen months to six months, while the fifteen month requirement continues for future credits.

All-in-cost ceiling for trade credits extended pending review, amended ECB policy effective immediately, with banks to notify constituents.
The all-in-cost ceiling for trade credits into India will continue to apply until March 31, 2013 and will be reviewed thereafter; other aspects of Trade Credit policy remain unchanged. The amended ECB policy is effective immediately and subject to review. Authorised Dealer Category I banks are required to bring the circular to the notice of their constituents. The directions are issued under statutory powers and without prejudice to other legal permissions.

Line of Credit for export financing imposes local sourcing and compliance conditions on exporters and authorised banks.
The Export-Import Bank of India extended a Line of Credit to the Government of the United Republic of Tanzania for specified water-supply projects, requiring eligible goods, equipment and consultancy to be exported from India; at least 75 percent of contract value must be supplied from India and up to 25 percent (excluding consultancy) may be procured abroad. The agreement sets the operative effective date, distinct opening and disbursement timelines for project and supply contracts, mandates GR/SDF shipment declarations, prohibits payment of agency commission under the LOC while permitting exporter-funded commission subject to realisation and remittance rules, and directs AD Category I banks to ensure compliance under FEMA.

Line of Credit to foreign government conditions export content, supplier origin, shipment declarations and FEMA compliance.
Provision of a Line of Credit by Export Import Bank of India to the Government of Togo conditions eligible exports and supplier origin: at least 75 per cent of contract value for goods and services (including consultancy) must be supplied from India, up to 25 per cent of non consultancy goods and services may be sourced abroad. The Agreement fixes effective and execution dates that determine the permissible periods for opening Letters of Credit and disbursements for project and supply contracts, and prescribes shipment declarations, agency commission restrictions, and compliance under FEMA.

Reporting obligations for liaison and branch offices: AACs with audited accounts must be furnished to tax authorities and endorsed on renewal.
Liaison and branch offices of foreign entities must furnish Annual Activity Certificates to the Director General of Income Tax (International Taxation) accompanied by audited financial statements, including a receipt and payment account. On renewal of LO permissions, Authorised Dealer Category I banks should endorse a copy of each renewal to the DGIT (International Taxation). Authorised Dealer Category I banks are responsible for notifying their constituents and ensuring compliance with these reporting requirements, which are issued under foreign exchange regulatory powers without prejudice to other statutory permissions.

External Commercial Borrowings policy relaxed for spectrum bidders allowing refinancing of rupee loans and bridge finance under automatic route.
Successful 2G spectrum bidders may refinance rupee loans used for upfront payments with long term ECBs under the automatic route if raised within eighteen months, with the designated AD Category I bank evidencing payment and monitoring end use; short term bridge finance in foreign currency is permitted under the automatic route replaceable by long term ECB within eighteen months subject to ECB guidelines; ECB from an ultimate parent is allowed without a maximum liability equity ratio provided the lender holds at least twenty five percent paid up equity. Other ECB parameters remain unchanged.