Line of Credit for export finance mandates predominant sourcing from India and regulatory compliance under FEMA.
A Line of Credit of USD 7.50 million from Export-Import Bank of India to the Government of Jamaica finances purchase of water pumps by the National Water Commission, requiring at least 85% procurement from India. The credit is effective from March 2, 2007; Letters of Credit must be opened by March 1, 2009, and disbursements completed by January 18, 2013. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own resources or EEFC balances for commission payment subject to AD Category-I bank compliance. Directions are issued under FEMA and do not obviate other statutory approvals.

Line of Credit to a foreign government sets project finance allocations, utilisation windows, documentation and commission limits.
A Line of Credit by Exim Bank to Guinea Bissau finances sectoral projects with specified allocations, effective March 2007, and prescribes utilisation windows of 48 months after project completion for project exports and 72 months for other supply contracts. Shipments must be declared on GR/SDF forms. Agency commission is not payable from the credit, though exporters may pay from own resources or EEFC balances after realisation, subject to remittance rules; Category I Authorised Dealer banks must inform exporters and permit compliant remittances.

Advance remittance liberalisation for rough diamond imports permits unlimited prepayments to specified miners subject to KYC and reporting.
AD Category - I banks may permit advance remittances without monetary limit and without bank guarantee or standby letter of credit for import of rough diamonds from a specified list of overseas mining companies, provided the importer is a GJEPC recognised processor with good export track record; banks satisfy themselves of the transaction's bonafides, make payments strictly to the ultimate beneficiary account, exercise caution against conflict diamonds, perform KYC and due diligence on both parties, obtain import evidence, and report large advance payments to the Reserve Bank as required.

Extension of time for realisation of export proceeds: authorised bank extensions permitted subject to prescribed conditions.
AD Category I banks are authorised to extend time for realisation of export proceeds up to six months at a time irrespective of invoice value, subject to conditions including no investigation, bank satisfaction on justifications, exporter declaration, and aggregate outstanding limits when extensions exceed one year; Status Holder exporters' write off entitlement is consolidated to the higher of two prescribed percentage measures; mandatory repatriation of a fixed share of on site software contract receipts is removed while profits must be repatriated after completion; invoice value reductions up to twenty five percent are permitted and credit report requirements for certain low value import documents are relaxed, with financial year adopted as uniform time base.

FDI entry rules updated: telecom infrastructure category clarified, conditional approval thresholds, mandatory post listing divestment and licensing obligations apply.
The amendment classifies ISP without gateway and electronic mail and voice mail separately and adds infrastructure provider Category-I (dark fibre, right of way, duct space, tower), retains an overall FDI cap with automatic entry up to a primary threshold and government approval beyond that threshold, imposes a post listing divestment obligation to transfer specified equity to the Indian public within a fixed period, and maintains applicable licensing and security requirements.

Rebooking of cancelled forward contracts: FIIs may rebook a capped portion tied to portfolio market value with mandated reporting.
AD Category I banks may allow FIIs to cancel and rebook forward contracts up to a limit of 2 per cent of the market value of their entire investment in India, with eligibility based on portfolio market value at the beginning of the financial year. Outstanding and rebooked contracts must be supported by underlying exposure; total forward cover must not exceed portfolio market value. Banks must monitor forward cover fortnightly and report using a revised format; other Schedule II instructions remain unchanged.

Line of Credit for export projects requires predominant Indian content, GR/SDF reporting, and prohibits bank-paid agency commissions.
Export Import Bank of India has extended a Line of Credit to the Government of Mozambique to finance export of Indian goods and services for electrification projects; eligible supplies must be at least 85 per cent Indian-origin and shipments are to be declared on GR/SDF forms. The Credit Agreement fixes utilisation periods and disallows agency commission under the LOC, though exporters may use own funds or EEFC balances for commission after full realisation. AD Category I banks must notify exporters and obtain full LOC details from Exim Bank. The directions are issued under sections 10(4) and 11(1) of FEMA.

Export credit line permits Exim Bank to fund exports to PTA member countries with specified terminal dates and commission limits.
Exim Bank provides a foreign currency Line of Credit to PTA Bank to finance exports from India to PTA member countries for goods and services eligible under the Foreign Trade Policy; the agreement is effective from 28 December 2006 with a 36 month terminal date for opening Letters of Credit and 42 month terminal date for disbursements. Shipments under the LOC must be declared on GR/SDF forms. Agency commission is generally not payable, but RBI may allow up to 5% for exports requiring after sales service (paid in PTA countries by invoice deduction), with the reimbursable amount to the negotiating bank specified as 90% of the f.o.b./c&f/c.i.f. value minus the commission. AD Category I banks must inform exporters and may permit commission remittances under prevailing rules; the directions are issued under FEMA.

Loans against NR(E)RA and FCNR(B) deposits: fresh or renewed loans barred above prescribed ceiling to limit asset price pressure.
Banks maintaining NR(E)RA and FCNR(B) deposits are prohibited from granting fresh loans or renewing existing loans above a prescribed ceiling against such deposits to depositors or third parties, with immediate effect; banks must avoid artificial slicing to circumvent the ceiling and implement amendments to the Foreign Exchange Management (Deposit) Regulations, 2000 while observing other legal permissions.

Line of credit requires majority financing of eligible Indian goods and compliance with LC and disbursement deadlines.
Exim Bank provided a Line of Credit to Guyana to finance an Indian company's traffic signalling project; the LOC funds exports of goods and services eligible under India's Foreign Trade Policy and mandates that a substantial majority finance purchase of Eligible Indian Goods. The credit has specified terminal dates for opening Letters of Credit and for final disbursements. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may pay commission from their own resources or EEFC balances after realisation, subject to prevailing rules and AD Category - I bank compliance.

Line of credit availability for eligible exports sets opening and disbursement deadlines, documentary declarations, and commission rules under FEMA.
Exim Bank granted a Line of Credit to Bancoldex to finance eligible exports from India, with specified effective, LC opening and disbursement terminal dates. Shipments must be reported on GR/SDF forms. Generally no agency commission is payable, but Reserve Bank may allow up to five per cent commission for exports requiring after sales service payable in Colombia by invoice deduction; in such cases Exim Bank reimburses 90 per cent of the f.o.b./c&f/c.i.f. value net of commission. Exporters may otherwise use own funds or EEFC balances for commission and AD Category I banks must observe prevailing remittance instructions.

Inter-project transferability of funds expanded for project and service exporters under authorised dealer monitoring, and temporary cash surplus deployment permitted
Inter-project transfers of machinery for turnkey and construction contracts are permitted without mandatory recovery of market or book value, subject to reporting and monitoring by the sponsoring authorised dealer bank, Exim Bank or Working Group. Exporters may open and operate one or more foreign currency accounts with inter-project transferability of funds in any currency or country, and may deploy temporary cash surpluses abroad in specified short-term instruments and deposits with overseas branches/subsidiaries of authorised dealer banks, all under monitoring by the authorised dealer bank(s)/Exim Bank/Working Group.

Foreign Direct Investment ceiling increase: compliance period for telecom providers extended until early April under amended press note.
The Government amended Press Note 5 (2005 Series) to extend the correction period for existing licence-holding telecom service providers to comply with the FDI conditions specified in that Press Note, thereby modifying the operative timeframe within which affected companies must regularise their foreign investment arrangements under the Press Note.