Limited two way fungibility of Indian Depository Receipts allowed subject to conversion rules, reissuance limits, and regulatory oversight.
Limited two way fungibility for Indian Depository Receipts is permitted subject to conversion governed by prior guidelines' conditions, fresh issuance under existing provisions, re issuance only to the extent of redeemed/converted and sold IDRs, and an overall capital raising cap monitored by SEBI; issuance, redemption and fungibility are subject to SEBI (Issue of Capital and Disclosure Requirements) Regulations and other applicable government, SEBI and RBI guidelines.

Anti Money Laundering standards require MTSS Indian agents to apply international risk guidance and ensure sub agent compliance for remittances.
AML/CFT standards apply to cross border inward remittances under MTSS, requiring Authorised Persons (Indian agents) to consider international risk guidance, ensure client due diligence, maintain records and verify identity, and to make sub agents comply; legitimate transactions remain permissible and implementation is required under applicable foreign exchange and anti money laundering statutory frameworks.

AML/CFT standards require money changers to consider international risk statements and apply enhanced due diligence to jurisdictions.
Authorised money changing persons must consider an international risk statement and adapt customer acceptance, transaction screening, and record maintenance practices accordingly; the guidance does not bar legitimate transactions. The obligation extends to agents and franchisees, with franchisers accountable for their compliance, and requires internal dissemination and Principal Officer acknowledgement, pursuant to statutory foreign exchange and anti money laundering directions.

Foreign direct investment by Pakistani nationals permitted with prior FIPB approval, subject to sectoral exclusions and Schedule I conditions.
A Reserve Bank circular permits persons resident outside India who are citizens of Pakistan or entities incorporated in Pakistan to purchase shares and convertible debentures under the Foreign Direct Investment framework with prior approval of the Foreign Investment Promotion Board, subject to Schedule I conditions; investments are barred if the Indian recipient is or will be engaged in defence, space, atomic energy or other sectors prohibited for foreign investment, and banks must inform customers of these conditions.

Annual Performance Report compliance required for overseas investments-declaration by investor and auditors' certification now mandated.
Form ODI Part I is amended to require the Indian party to declare and the statutory auditors to certify that, where applicable, the Annual Performance Report for all existing JV/WOS abroad has been submitted, as a condition for undertaking overseas direct investment under the Automatic Route; this complements existing auditor certifications on investment eligibility, funding limits, valuation norms, ECB/FCCB applicability and regulatory approvals for financial services investments.

Line of Credit enables export financing subject to substantial India sourced supply and prescribed disbursement and reporting rules.
Exim Bank's Line of Credit to Chad finances eligible goods, services, machinery, equipment and consultancy from India under India's Foreign Trade Policy. Contracts must source a substantial portion of supplies from India while allowing limited external procurement for non consultancy goods. The Credit Agreement is effective from July 26, 2012 with specified deadlines for opening Letters of Credit and disbursements for project and supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC; exporters may use own funds or EEFC balances for commission subject to realisation and AD Category I bank procedures. Directions issued under FEMA sections 10(4) and 11(1).

Foreign investment from Pakistan permitted under government route, excluding defence, space and atomic energy sectors.
The policy amendment permits investment by a citizen of Pakistan or an entity incorporated in Pakistan, only under the Government route, in sectors/activities other than defence, space and atomic energy, revising paragraph 3.1.1 of the Consolidated FDI Policy and taking immediate effect.

Downstream investment treatment: banking-company restructuring and trading-book investments excluded from indirect foreign investment, but strategic subsidiary investments included.
Downstream investments by an Indian banking company owned or controlled by non-residents made under Corporate Debt Restructuring, other loan restructuring mechanisms, held in trading books, or arising from acquisition of shares due to loan defaults shall not count as indirect foreign investment; however, strategic downstream investments-investments by these banks in their subsidiaries, joint ventures and associates-shall count towards indirect foreign investment.

Forward contract modification allowed for exporters to enhance hedging flexibility; banks may exclude options and overseas positions from NOOPL.
Exporters may cancel and rebook forward contracts involving the Rupee for hedging contracted export exposures up to an annual capped extent to provide operational flexibility. AD Category I banks may exclude their Net Options Position and positions of overseas branches from the Net Overnight Open Position Limit for Rupee involving positions, provided the bank's board fixes separate limits for these components within the overall NOOPL and communicates them to the Reserve Bank for approval.

Foreign exchange earnings retention restored for EEFC accounts, subject to conversion into rupees by the succeeding month after approved utilisations.
Full credit of foreign exchange receipts to EEFC accounts is permitted, conditioned on conversion of accruals in any calendar month into Rupee balances on or before the last day of the succeeding calendar month after adjusting for approved utilisations and forward commitments; the same procedure applies to Diamond Dollar and Resident Foreign Currency (Domestic) accounts, and authorised dealers must notify customers while other earlier terms remain unchanged.

Compounding of FEMA contraventions: a suo moto compounding application requires initiation of the compounding process.
When a contravention is identified or brought to the Reserve Bank other than via the prescribed compounding application, the Bank will determine whether it is technical/minor (administrative/cautionary advice), material (requires compounding under the prescribed procedure), or sensitive/serious (refer to the Directorate of Enforcement). If an entity files a suo moto compounding application admitting the contravention, it shall not be treated as technical or minor and the compounding process will be initiated under section 15(1) of FEMA read with the compounding rules.

Line of Credit requires majority Indian-sourced supplies, specified LC/disbursement timelines, GR/SDF declarations and FEMA compliance.
A Line of Credit from Exim Bank to Ethiopia finances Indian-sourced eligible goods, services, machinery, equipment and consultancy for sugar-industry development; at least 75 per cent of contract value must be supplied by Indian sellers with up to 25 per cent procured outside India. The Agreement fixes timelines for Letters of Credit and disbursements, mandates GR/SDF shipment declarations, prohibits agency commission under the LOC (subject to exporter-funded commission from own resources or EEFC after realization), and requires AD Category I banks to inform exporters; directions are issued under FEMA.

Line of Credit for infrastructure financing enables import of eligible Indian goods and services with specified domestic content, documentation.
Exim Bank extended a Line of Credit to Nepal to fund infrastructure-related imports of eligible Indian machinery, equipment, goods and consultancy, requiring at least 75% Indian content in contract value (with limited 25% non-Indian procurement), subject to possible reduction with borrower and governmental approval. The Credit Agreement is effective from June 29, 2012; LC opening and disbursement deadlines are set by contract type. 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 subject to realisation and compliance; AD Category-I banks must inform exporters and facilitate compliance.

Resident foreign currency accounts exempted from prior circular; authorised dealer banks must notify customers under FEMA authority.
Provisions of Circular No. 124 dated May 10, 2012 will not apply to Resident Foreign Currency Accounts held as EEFC Accounts. Authorised Dealer Category I banks must inform their constituents and customers of this clarification. The instruction is issued under FEMA authority and is without prejudice to other statutory permissions or approvals.

Qualified Foreign Investor access to Indian corporate debt permitted, subject to single Rupee account, KYC and reporting obligations.
QFIs may invest on a repatriation basis in defined Indian corporate debt instruments through SEBI-registered QDPs or on recognised exchanges, subject to applicable pricing and listing timelines; each QFI must use a single non-interest bearing Rupee Account for all receipts and payments related to eligible securities and maintain a single demat account with a QDP. Eligibility is limited to persons resident in jurisdictions meeting FATF and IOSCO cooperation criteria (excluding certain jurisdictions and existing FII/FVCI registrants). KYC, reporting to RBI and SEBI, an overall investment ceiling, and permission to hedge currency risk apply.

Special Currency Basket valuation revised, requiring authorised dealer banks to adopt the new rupee conversion and notify constituents accordingly.
The Reserve Bank revised and fixed the rupee value of the Special Currency Basket effective in early July 2012, replacing the previously indicated value, for use in conversion and settlement under the Deferred Payment Protocols. Authorised Dealer Category I banks are directed to apply the revised valuation and notify their constituents. The directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other legal permissions.

Revised A-2 Form purpose codes updated for foreign remittance filings, requiring authorised dealers to use annexed codes.
The Reserve Bank revised the list of purpose codes appended to Form A-2 to align with amended purpose codes used on R-Returns and annexed the revised list and updated Form A-2 for applicants remitting funds abroad; Authorised Dealers must implement the revised coding under the regulatory authority of the Foreign Exchange Management Act, 1999.

Non-Resident Deposit reporting now requires only electronic submission to the central statistics office; hard copies discontinued for most banks.
Banks dealing in foreign exchange must submit Stat 5 and Stat 8 returns in the prescribed electronic format only to the central statistics office and may stop sending hard copies to that office; Co-operative Banks and Regional Rural Banks should continue submitting both hard and soft copies to the regional offices. The instructions are issued under powers conferred by the foreign exchange legislation and are without prejudice to other statutory permissions or approvals.

Interbank rollover flexibility allows residents to switch authorised dealer banks for hedge contract rollover on maturity date.
The Reserve Bank extended the existing inter-bank switch facility so that residents may rollover hedge transactions by switching Authorised Dealer Category I banks on the contract maturity date. The extension applies to all hedge transactions and remains subject to the established conditions: a commercially warranted reason for the switch, simultaneous cancellation and rebooking on maturity, and the rebooking bank's responsibility to ensure cancellation of the original contract. These directions are issued under the Foreign Exchange Management Act.

Special Currency Basket revision: Rupee value adjusted; authorised banks to apply FEMA directions and notify constituents.
The Reserve Bank revised the Rupee valuation of the Special Currency Basket and instructed Category I Authorised Dealer banks to apply the new value in dealings under the Deferred Payment Protocols with the erstwhile USSR, requiring banks to notify their constituents; the directions are issued under the Foreign Exchange Management Act (FEMA) and without prejudice to other legal permissions.