Special Currency Basket value revised, requiring authorised dealer banks to implement the updated rupee valuation and notify constituents.
The Reserve Bank notifies a revised rupee value for the Special Currency Basket, superseding the earlier indicated value, and fixes the revised valuation with effect from a specified date. Category I Authorised Dealer banks are directed to implement the revised valuation for settlements under the deferred payment arrangements and to inform their constituents. The directions are issued under sections 10(4) and 11(1) of FEMA and do not prejudice other legal permissions or approvals.

Repatriation period liberalisation allows twelve month realisation of export proceeds, extending the compliance window for exporters and banks.
The circular extends an administrative liberalisation allowing AD Category I banks to permit realization and repatriation of the full export value of goods or software within a twelve month period from the date of export for a specified temporary window, leaves SEZ and external warehouse export provisions unchanged, and directs banks to inform constituents while noting that the directions are issued under statutory foreign exchange powers and do not affect other legal permissions or approvals.

KYC/AML obligations: passport may serve as identity and address proof for foreign tourists; franchisers remain responsible for compliance.
The circular relaxes documentary KYC requirements for money changing Authorised Persons by specifying acceptable identity and address documents, allowing a passport copy as both identity and address proof for foreign tourists, and permitting passport-plus-stamped-visa with a signed declaration when no address appears; the guidance applies equally to agents/franchisees and places on franchisers responsibility for their agents' compliance, issued under FEMA and the PMLA.

Concurrent audit requirement for multiple-branch authorised money changers permits value-wise split between monthly and quarterly audits.
The memorandum permits multiple-branch authorised money changers to adopt a system of Concurrent Audit covering eighty per cent of transaction value on a monthly basis and the remaining twenty per cent value on a quarterly basis, modifying the prior requirement that all multiple-branch AMCs have monthly audits; single-branch AMCs above the existing turnover threshold remain subject to monthly audit requirements, and all other prior instructions continue to apply.

Money Transfer Service Scheme: authorised persons must update and verify sub agent lists and notify regulatory offices promptly.
Authorised persons under the Money Transfer Service Scheme must notify immediately any additions or deletions to their Sub Agent lists to the Foreign Exchange Department regional offices and the Central Office, verify the list posted on the Bank's website regularly, report discrepancies promptly, and confirm the veracity of the posted list to the Central Office in writing or by e mail within fifteen days after each quarter's end.

External Commercial Borrowings by SIDBI allowed for on lending to MSMEs, requiring hedging and route based approvals.
SIDBI is authorised to avail External Commercial Borrowings for on lending to the MSME sector, with on lending permitted in INR or foreign currency; INR on lending requires full hedging of foreign currency risk by SIDBI, while foreign currency on lending is limited to beneficiaries with a natural hedge. ECB for on lending up to fifty per cent of SIDBI's owned funds is under the automatic route, amounts beyond that require approval and are subject to an annual ceiling. Proceeds must be used only for permissible end uses and other ECB conditions remain applicable.

Simplified Softex procedure allows eligible software exporters to submit consolidated electronic export declarations under revised certification rules.
The revised Softex Procedure is extended to all STPIs immediately, allowing software exporters who meet defined commercial thresholds to submit a consolidated Excel statement as specified in A.P. (DIR Series) Circular No.80 dated February 15, 2012, in place of individual SOFTEX form certification; Authorised Dealers must notify constituents and the directions are issued under the Foreign Exchange Management Act.

Sale of foreign exchange to DTA units allowed for payments to SEZ suppliers, subject to Letter of Approval requirement.
Authorised Dealer Category I banks may sell foreign exchange to DTA units to make payments in foreign exchange to SEZ units for goods and services supplied, provided the SEZ unit's Letter of Approval from the Development Commissioner explicitly permits such supply to the DTA unit and payment in foreign exchange.

FII currency hedging access expanded: FIIs may approach any AD bank subject to valuation, declarations and special account settlement.
AD Category I banks may accept FIIs for hedging currency risk on the market value of their entire India investments if supported by a valuation certificate from the designated AD bank and a declaration that global outstanding hedges plus cancelled derivatives across AD banks are within the market value. FIIs must provide quarterly declarations to the custodian that total derivatives booked across AD banks are within the market value. Hedges with non-designated AD banks must be settled through the Special Non-Resident Rupee A/c maintained with the designated bank via RTGS/NEFT.

Loans against NRE/FCNR(B) deposits allowed without ceiling subject to margin; premature withdrawal of such deposits prohibited.
Banks may grant loans against NR(E)RA and FCNR(B) deposits to depositors or third parties without any ceiling, subject to usual margin requirements; 'loan' includes all fund based and non fund based facilities and FCNR(B) margins are notionally calculated in rupee terms. Premature withdrawal of such deposits is prohibited when loans are availed and must be disclosed at sanction. Existing non conforming loans may continue for their term but shall not be renewed; other conditions unchanged. Instructions are effective immediately and issued under the foreign exchange statute.

Electronic reporting compliance: test-mode FINnet uploads required; continue CD submission until go-live for Authorised Persons under PMLA.
Authorised Persons must begin submitting CTRs and STRs on the FINnet gateway in test mode to verify XML-compliant electronic uploads, while continuing to provide existing reports on CD until FIU-IND announces the go-live date; helpdesk support is available and earlier reporting instructions remain unchanged under directions issued pursuant to FEMA and PMLA.

Report submission in test mode: authorised entities must validate XML uploads on FINnet while maintaining existing report delivery.
Authorised Persons must begin submitting transaction reports on the FINnet Gateway in test mode to validate XML-compliant electronic upload capability, while continuing to submit existing reports on physical media until the authority announces the go-live; entities should use the helpdesk for assistance and ensure readiness to implement the new XML reporting format for Cash Transaction Reports and Suspicious Transaction Reports.

Foreign ownership thresholds in NBFCs allow high-foreign-owned firms to form step-down subsidiaries without additional capital, subject to capitalization.
NBFCs with high levels of foreign ownership and meeting the prescribed minimum capitalisation may establish step-down subsidiaries for specified NBFC activities without restriction on the number of operating subsidiaries and without bringing in additional capital; the minimum capitalisation mandate for downstream subsidiaries is therefore inapplicable to those entities.

All-in-cost ceiling for external commercial borrowings remains in force; AD Category I banks must notify constituents.
The circular maintains the existing all-in-cost ceiling for External Commercial Borrowings until further review; AD Category I banks must notify constituents, other ECB policy aspects remain unchanged, and the directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other legal permissions.

All-in-cost ceiling for trade credits remains applicable for import finance, requiring AD Category I banks to apply and notify customers.
Continuation of the all-in-cost ceiling for trade credits for imports into India remains applicable as specified in A.P. (DIR Series) Circular No. 28 dated September 11, 2012 until further review; Authorized Dealer Category I banks must apply this ceiling and notify their constituents, while all other trade credit policy aspects remain unchanged and directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Special Currency Basket value revised for deferred payment protocols, requiring authorised dealers to implement updated Rupee valuation.
The Reserve Bank of India notified AD Category I banks of a revision to the Rupee valuation of the Special Currency Basket applicable to Deferred Payment Protocols with the erstwhile USSR, fixed effective from the specified date; banks must inform constituents and implement the revised valuation, and the Directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other statutory permissions.

Foreign investment threshold change allows majority foreign owned NBFCs to form step down subsidiaries without bringing additional capital.
The amendment permits NBFCs with foreign investment above three quarters and up to full ownership and with a minimum capitalisation to set up step down subsidiaries for specified NBFC activities without restriction on the number of operating subsidiaries and without bringing in additional capital; the minimum capitalization requirement in the circular therefore does not apply to downstream subsidiaries.

Special Currency Basket valuation revised, requiring authorised dealer banks to adopt the new rupee conversion and notify constituents.
The circular notifies Authorised Dealer Category I banks of a revision to the rupee value of the Special Currency Basket, fixes the revised rupee value effective from a specified date, directs AD Category I banks to inform their constituents, and states the directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 without prejudice to other legal permissions.

FDI allotment pricing: non resident subscriptions under Memorandum of Association may be accepted at face value if eligible.
The Reserve Bank clarified that when non residents, including NRIs, subscribe to an Indian company's Memorandum of Association in compliance with the Companies Act, such investment may be made at face value, provided the investor is eligible under the FDI scheme; AD Category I banks are to inform their constituents of this pricing clarification, subject to other statutory permissions or approvals.

Liaison and branch office reporting requirement: foreign offices must notify state police, file annual Annex reports and inform banks.
Foreign entities establishing Liaison, Branch or Project Offices in India must submit the prescribed Annex information to the state police authority within five working days of becoming functional, file the Annex annually along with the Annual Activity Certificate/Annual Report, and furnish copies to their Category I Authorised Dealer bank; existing offices must likewise file the Annex annually. The Annex specifies detailed information on the foreign entity, Indian office, head of office, personnel and visa compliance, visitors, projects/contracts, equipment imports and government and civil society contacts.