International competitive bidding: residents may incur foreign exchange liabilities and make payments without prior ministry approval.
Persons resident in India may incur foreign exchange liabilities and make or receive payments in foreign exchange for global bids for projects executed in India under International Competitive Bidding without prior Administrative Ministry or Central Government approval, and Authorized Dealer Category I banks may sell foreign exchange to resident companies awarded such contracts, subject to other applicable laws.

Special currency basket valuation revised; banks must apply new rupee conversion for deferred payment protocols promptly.
The rupee valuation of the special currency basket for the Deferred Payment Protocols is revised and fixed at Rs.58.6670 effective April 7, 2008, replacing the earlier indicated value; A.D. Category I banks are required to apply this revised rupee value and notify their constituents, pursuant to directions issued under the Foreign Exchange Management Act, 1999.

Direct receipt of import bills for rough precious and semi-precious stones extends liberalised eligibility and bank due diligence conditions.
Non-status holder exporters of rough precious and semi-precious stones may receive import bills/documents directly from overseas suppliers and obtain remittance from AD Category I banks up to the enhanced threshold where documentary evidence is produced; banks must comply with the Foreign Trade Policy, satisfy themselves as to bonafides, complete KYC and due diligence on the importer, and obtain reports on overseas suppliers.

Liberalised Remittance Scheme reporting now requires monthly submission by AD Category I banks using a prescribed format and deadline.
Authorised Dealer Category I banks must, from April 2008, submit monthly statements (using the prescribed annexed format) of applications received and amounts remitted under the Liberalised Remittance Scheme for resident individuals, categorised by purpose, to the Chief General Manager in Charge, Foreign Exchange Department, Reserve Bank of India, so as to reach the office on or before the fifth of the following month; all other earlier terms remain unchanged and the directions are issued under the Foreign Exchange Management Act, 1999.

Special currency basket valuation revised, requiring banks to apply updated rupee conversion rates for deferred payment arrangements.
AD Category I banks are notified of successive revisions to the rupee valuation of the special currency basket applicable to Deferred Payment Protocols; banks must apply the revised rupee values with the specified effective dates, inform their constituents, and note that these directions are issued under the Foreign Exchange Management Act, 1999 and without prejudice to other legal permissions or approvals.

Overseas investment limits expanded for mutual funds; enhanced ceiling and continued reporting obligations to the central bank.
The circular liberalises overseas investment by mutual funds by raising the aggregate ceiling for registered mutual funds' overseas investments and retaining a separate facility for a limited number of qualified mutual funds to invest in overseas Exchange Traded Funds under SEBI's operational guidelines. It reiterates that authorised dealer Category I banks must continue monthly reporting to the Reserve Bank, with modifications to include new investment categories, and that reports are to be submitted on or before the tenth of the following month; non submission will be viewed seriously.

Line of Credit conditions govern export eligibility, local content requirement, declaration and disbursement timelines under FEMA directions.
Exim Bank provided a Line of Credit to the Government of Suriname to finance eligible Indian goods, services and consultancy for a water supply project; at least 85 per cent of contract value must be supplied from India while remaining non consultancy inputs may be procured abroad. The Credit Agreement sets deadlines for opening Letters of Credit and disbursements with distinct timelines for project exports and supply contracts. Shipments must be declared on GR/SDF forms; no agency commission is payable under the LOC, though exporters may use their own funds or EEFC balances for commission subject to AD Category I bank approval. Directions issued under FEMA.

Line of Credit conditions govern export financing and domestic supply requirements for infrastructure projects under FEMA compliance.
Exim Bank's Line of Credit to the Government of Nepal finances eligible exports of goods, services and consultancy from India for specified infrastructure projects, requiring minimum Indian-sourced supply content (85% for specified hydro repairs, 70% for transmission/interconnectivity, 50% for other projects). The Credit Agreement fixes effective and disbursement timelines, mandates declaration of shipments on foreign exchange forms, disallows agency commission under the LOC while permitting exporter-funded commission from own resources or EEFC balances subject to realisation and remittance rules, and is issued under FEMA without prejudice to other statutory permissions.

FDI reporting obligations require companies to file FC GPR and annual returns with RBI detailing share issuances and inflows.
Foreign direct investment reporting under FEMA requires Indian companies to file the prescribed FC GPR through an Authorised Dealer Category I bank and an annual Part B return to the RBI. The FC GPR demands detailed investor and issuance particulars, mode and amount of inflow, fair value disclosure, post issue shareholding, and accompanying declarations and certificates from the authorised representative, company secretary and statutory auditors. The Part B annual return reports outstanding foreign liabilities and assets, portfolio positions, market and net asset values, and shareholding patterns as at end March for statistical monitoring.

Foreign investment in titanium mineral mining permitted with full ownership under prior approval, subject to technology transfer and tailings rules.
Foreign direct investment up to 100% with prior Government approval is allowed in mining, mineral separation, value addition and integrated activities for titanium bearing minerals and ores, subject to sectoral regulations and the Mines and Minerals (Development and Regulation) Act. FDI in separation is conditioned on establishing value addition facilities in India with technology transfer and on tailings disposal complying with Atomic Energy Regulatory Board rules including the Atomic Energy (Radiation Protection) Rules, 2004 and Atomic Energy (Safe Disposal of Radioactive Wastes) Rules, 1987. FDI is not allowed for mining of substances listed as prescribed under Notification S.O. 61(E).

FDI policy in petroleum refining now permits increased foreign equity with prior approval; compulsory divestment removed.
The Press Note removes the prior compulsory divestment requirement for foreign equity in actual trading and marketing of petroleum products, and permits foreign investment up to 49% in petroleum refining by Public Sector Undertakings subject to prior approval of the FIPB, without dilution of existing domestic PSU equity; it also reaffirms automatic-route FDI permissions for private-sector exploration, marketing, pipelines and refining.

FDI limits in civil aviation set across airports, air transport and services, with approvals and foreign-airline equity restrictions.
FDI rules set sector-specific ceilings and entry routes for airports, air transport services and other aviation activities, subject to Aircraft Rules and Civil Aviation Requirements. Airports: greenfield projects allow full FDI under the automatic route; existing airports permit full FDI with prior government approval when domestic ownership thresholds are exceeded. Air transport: foreign airlines cannot hold equity in passenger scheduled, non-scheduled or charter operators but may invest in cargo, helicopter and seaplane services. Distinct FDI caps and automatic-route permissions apply to scheduled carriers, non-scheduled/charter/cargo operators, ground handling, maintenance and training entities, with regulatory and security conditions.

Foreign investment automatic route permits full FDI in industrial parks subject to minimum unit mix and area allocation conditions.
Foreign direct investment is permitted on the automatic route for both new and existing industrial parks without the construction-development conditionalities if the park meets specified conditions: it must comprise a minimum number of independent units with no single unit occupying more than half of the allocable area, and not less than two thirds of the allocable area must be allocated for industrial activity. The guidelines define industrial park, infrastructure, common facilities, allocable area and eligible industrial activities, and list required common services and amenities.

Foreign investment in commodity exchanges permitted under a composite FDI/FII ceiling with government approval and ownership limits.
Permits foreign investment in commodity exchanges via a composite ceiling combining foreign direct investment and registered FII portfolio investment, subject to recognition under the Forward Contracts (Regulation) Act. Aggregate foreign investment is capped under the composite ceiling, FDI requires prior government approval, FII purchases are limited to the secondary market, and no foreign investor or persons acting in concert may exceed a prescribed low-percentage equity holding.

Foreign investment limits in credit information companies require prior government approval and RBI clearance for participation.
Foreign investment in Credit Information Companies is permitted under the Credit Information Companies (Regulation) Act, 2005, with FDI and registered FII portfolio investment allowed up to 49% subject to prior Government approval and RBI regulatory clearance, and additional limits and conditions apply to FII participation in listed CICs.

Line of Credit conditions require majority Indian content and procedural compliance for project export supplies.
Exim Bank's Line of Credit finances eligible goods, services and consultancy for the Nam Chien Hydro Power Project provided such exports comply with India's Foreign Trade Policy. At least 85 per cent of the contract price must be supplied from India; remaining goods (other than consultancy) may be procured abroad. Letters of Credit and disbursement deadlines are tied to contract completion or to the Credit Agreement execution date as specified. 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 subject to realisation and AD bank compliance.

Bank-wide R-Return submission required: mandatory transition for all AD Category I banks beginning January 2009.
All Authorised Dealer Category I banks must transition from branch-wise to bank-wide R-Return submission, with bank-wide reporting mandatory from the first fortnight of January 2009; banks previously had the option to submit bank-wide returns from November 2006 and were advised to create necessary infrastructure as branch-wise reporting would be phased out, the direction being issued under Sections 10(4) and 11(1) of the FEMA 1999.

Line of Credit conditions require predominant domestic sourcing, specified LC/disbursement timelines, and regulated commission remittance.
Exim Bank's Line of Credit to Ethiopia finances exports for sugar projects with at least 85 per cent of contract value to be supplied from India; remaining goods (other than consultancy) may be procured abroad. The agreement sets deadlines for opening Letters of Credit and disbursements for project and supply contracts, requires GR/SDF shipment declarations, disallows agency commission under the LOC while permitting exporter-funded commission remittances after full realisation, and directs AD Category - I banks to inform exporters. Directions are issued under FEMA and do not override other legal permissions.

Liberalised Remittance Scheme permits resident individuals to remit abroad for permitted transactions subject to KYC and reporting requirements.
Regulation of miscellaneous remittances under FEMA allocates authority: drawals for Schedule I purposes are prohibited; Schedule II requires Government approval and Schedule III requires Reserve Bank approval above specified thresholds, with Authorised Dealers permitted to release foreign exchange up to delegated limits. Authorised Dealers may allow a range of non trade current account remittances (private/business travel, education, medical treatment, tour operator settlements, etc.) on self declaration or simplified documentation within prescribed ceilings, enforce KYC and record keeping under Section 10(5), and report transactions and guarantee invocations to the Reserve Bank.

Remittance limits for non-residents permit capped outward transfers with prescribed documentation and tax certification.
Master Circular consolidates RBI rules permitting remittance of current income and limited repatriation of balances and sale proceeds by NRIs/PIOs and eligible foreign nationals, subject to documentary evidence, remitter undertakings and Chartered Accountant certification in prescribed formats. Repatriation of residential property sale proceeds purchased with foreign exchange is allowed to the extent of original foreign exchange payment and limited to two properties. Authorised dealers must verify compliance, preserve documents, refuse deficient transactions, and report suspected contraventions; certain nationalities are excluded from specific remittance facilities.