Remittance limits for non-residents require bank certification and tax compliance before repatriation is permitted.
Remittance facilities under FEMA permit NRIs/PIOs and certain foreign nationals to remit current income, sale proceeds of assets and salary subject to documentation, tax compliance and Authorised Dealer bank satisfaction. Repatriation of sale proceeds requires evidence of acquisition/inheritance, an undertaking by the remitter and a Chartered Accountant certificate in prescribed formats. Specified annual repatriation limits and nationality based exclusions apply. Authorised Dealer banks must obtain and preserve declarations, ensure transactions do not contravene FEMA, and report suspected contraventions to the Reserve Bank.

Liberalised Remittance Scheme permits resident individuals to remit abroad for permitted current and capital transactions subject to limits and exclusions.
Authorised Dealers are delegated authority to release foreign exchange to residents for specified non trade current account and certain capital account transactions under FEMA, subject to schedule based prohibitions and referral to the Reserve Bank for amounts exceeding delegated limits; the circular prescribes categories of permissible remittances, self declaration and documentation thresholds (including simplified Form A2 and PAN requirement for the Liberalised Remittance Scheme), a 180 day surrender rule for unspent exchange, residency foreign currency account provisions, and operational conditions for cards, guarantees, advance remittances and reporting by AD banks.

FCCB buyback rules: expanded automatic and approval routes allow premature repurchase subject to specified discounts and funding conditions.
Premature buyback and prepayment of FCCBs are allowed through expanded automatic and approval routes. Under the automatic route, buyback value must be at least an 8% discount to book value, funded from existing foreign currency funds (including EEFC) or compliant fresh ECBs, with applicable all in cost ceilings for short term or relevant maturities. Under the approval route, prior Reserve Bank approval is required and tiered minimum discounts on book value apply by redemption value bands; applications must be submitted through designated AD Category I banks to the ECB Division. The facility is effective immediately and must be completed by the specified cut off date.

Government-route FDI conversion permitted for import payables and pre operative expenses, subject to valuation, timelines, pricing and tax clearance.
Government route conversion into equity is permitted for import payables for capital goods and for pre operative/pre incorporation expenses, subject to compliance with import policy and FEMA import regulations, independent third party valuation and customs documentation for imports, disclosure of beneficial ownership, completion of conversion within 180 days of shipment or within the permitted retention period for advances, submission of FIRCs and auditor certification for pre operative expenses, direct payment by the foreign investor, a company special resolution, adherence to RBI pricing guidelines, and appropriate tax clearance.

Overseas Direct Investment transfer rules permit sale of foreign JV/WOS subject to specified conditions and reporting.
The Reserve Bank permits Indian parties to sell shares of overseas JV/WOS without prior approval where the sale does not cause write off, is on a listed exchange or at a CA/CPA certified fair value if private, the overseas concern has operated for at least one year and filed audited accounts and performance report, no dues or export proceeds are outstanding, and the Indian party is not under investigation; specified write off disinvestments are permitted without prior approval in enumerated cases subject to the same operational conditions; disinvestment details must be filed with the designated AD Category I bank within thirty days, otherwise prior RBI permission is required.

Line of Credit conditions require predominantly Indian-sourced exports for Ethiopia, specified disbursement timelines and FEMA compliance.
Exim Bank made a Line of Credit available to Ethiopia to finance eligible Indian goods and services for sugar-industry development, requiring predominant Indian supply content with limited foreign procurement permitted; the agreement prescribes specific windows for opening Letters of Credit and disbursement for project and supply contracts, mandates GR/SDF shipment reporting, prohibits agency commission under the LOC while permitting exporter-funded commission subject to realisation and rules, and directs Authorised Dealer Category-I banks to notify exporters and facilitate compliance, pursuant to FEMA directions.

Line of credit conditions require majority Indian sourcing and specified reporting, with commission rules and FEMA authority.
Exim Bank provided a Line of Credit to Tanzania to finance eligible goods and consultancy services from India, requiring at least 75% of the contract price to be supplied from India while allowing up to 25% of non consultancy goods to be procured abroad. The Credit Agreement prescribes specific windows for opening letters of credit and disbursement, mandates GR/SDF reporting of shipments, disallows agency commission under the LoC (subject to exporter self funding or EEFC remittances after realization), and directs Authorised Dealer Category I banks to notify exporters; directions are issued under FEMA powers.

NRO account re-designation permitted for departing foreign nationals to collect pending dues, subject to tax clearance and repatriation rules.
AD Category I banks may permit departing foreign nationals to re-designate resident accounts as NRO accounts to receive pending bonafide dues, provided the bank obtains full details of expected dues, verifies that credits are bonafide, ensures immediate repatriation after satisfying itself about payment of applicable taxes, enforces that debits are only for repatriation to the holder's overseas account, permits no other inflows, applies internal controls to monitor transactions, observes the per financial year repatriation limit, and closes the account after all dues are repatriated.

Overseas direct investment liberalisation expands permitted guarantees, write-offs, disinvestments and reporting requirements under FEMA.
Performance guarantees will be reckoned at fifty per cent for computing an Indian party's financial commitment and may be valid for the contract period, with similar reporting as financial guarantees and prior central bank approval if invocation breaches exposure limits. Indian promoters with controlling stakes may write off capital and receivables within prescribed routes and limits, report such actions within thirty days with certified loss balance sheets and five-year projections, and disinvestments with repatriation shortfalls are allowed for specified promoter categories under the Automatic Route with reporting. Corporate guarantees for first-generation step-down subsidiaries are permitted under general permission; deeper guarantees require approval where majority stake exists.

FDI in LLPs permitted subject to sectoral automatic-route eligibility and strict governance, compliance, and investment restrictions.
Permits Foreign Direct Investment in LLPs only where the LLP operates in sectors allowing 100% FDI under the automatic route without FDI-linked performance conditions, via the Government approval route. LLPs with FDI cannot engage in agricultural/plantation activities, print media or real estate, nor make downstream investments. Foreign institutional and venture capital investors are barred and LLPs cannot access external commercial borrowings. Foreign capital must be by cash inward remittance or debit to specified foreign currency accounts. Designated partners bear compliance obligations and liability; corporate designated partners must be Indian companies. Conversion of a company with FDI into an LLP requires prior government approval.

Hedging IPO flows: FIIs may use foreign currency-rupee swaps for ASBA subscriptions under specified amount and tenor limits.
FIIs are permitted to use foreign currency-rupee swaps solely to hedge transient IPO-related flows under the ASBA mechanism, subject to limits: swap amount must not exceed the proposed IPO investment, tenor is limited to thirty days, cancelled contracts cannot be rebooked and rollovers are not permitted. AD Category I banks must convey the circular to constituents; directions are issued under the foreign exchange statutory framework with separate amendments to the derivatives regulations to follow.

Forward cover limits for Foreign Institutional Investors increased, permitting broader rebooking of cancelled contracts under the FEMA framework.
FIIs are authorised to cancel and rebook forward cover contracts up to an enhanced threshold of ten per cent of the market value of the portfolio as at the beginning of the financial year; other operational guidelines and terms and conditions remain unchanged. AD Category I authorised dealer banks must inform their constituents and customers. The direction is issued under the Foreign Exchange Management Act and is without prejudice to other statutory permissions or approvals.

AML/CFT compliance: Indian agents must apply FATF guidance for cross-border remittances and inform customers accordingly.
Indian agents under the Money Transfer Service Scheme must consider the FATF Statement identifying jurisdictions with strategic AML/CFT deficiencies for cross-border inward remittances, notify constituents and customers of its contents, and have their Principal Officer acknowledge receipt; non-compliance with the prescribed guidelines attracts applicable penal and regulatory consequences.

Anti-Money Laundering standards: money changers must consider FATF jurisdictional deficiencies and notify customers, with principal officer acknowledgement.
Authorised persons in money changing activities are directed to consider the FATF Statement identifying jurisdictions with strategic AML/CFT deficiencies, to notify their constituents and customers of the Statement, and to have the Principal Officer acknowledge receipt; the circular is issued under FEMA and the PMLA framework and non compliance may attract penal provisions under those schemes.

Anti Money Laundering standards: apply FATF counter measures to cross border remittances and ensure due diligence and reporting.
Authorised persons under the Money Transfer Service Scheme must apply counter measures for identified ML/TF risks in specified jurisdictions, notify constituents and customers of FATF guidance, obtain Principal Officer acknowledgement, and implement due diligence, recordkeeping and reporting; non compliance attracts applicable penal consequences under the governing statutes and rules.

Anti-Money Laundering measures: apply FATF-recommended counter-measures and strengthen AML/CFT controls for cross-border money-changing risks.
Authorised dealers and money-changing Authorised Persons must consider the FATF statement and apply protective counter-measures, inform constituents and customers, ensure Principal Officer acknowledgement, and maintain AML/CFT controls and records as required under the Foreign Exchange Management Act and the Prevention of Money Laundering framework; non-compliance may attract penal provisions.

KYC/AML record-keeping obligations expanded for money transfer agents; broader transaction, NGO receipt and forged-currency reporting required.
Authorised Persons under the Money Transfer Service Scheme must maintain transaction records per Rule 3, including cash transactions exceeding the prescribed threshold, series of connected cash transactions whose monthly aggregate exceeds the threshold, receipts by non profit organisations above the threshold, cash transactions involving forged or counterfeit currency or forged documents, and all suspicious transactions whether or not in cash, with these requirements to be communicated to constituents and enforced under the applicable statutory framework.

KYC thresholds updated: identification and enhanced due diligence required for money changing transactions exceeding prescribed limits.
The circular amends KYC/AML/CFT rules for money changing authorised persons by setting a rupee equivalent threshold for requiring retention of identification copies, obliging verification and possible suspicious transaction reporting where structuring is suspected, mandating enhanced CDD on any suspicion and full CDD where risk is not low, and expanding record keeping to cover aggregated series exceeding the prescribed threshold, receipts by non profit organisations above the threshold, transactions involving forged or counterfeit currency or documents, and all suspicious transactions under the PML Rules.

Eligibility criteria for OTC derivative users updated: stricter net worth and accounting, fair valuation, disclosures, and risk policy requirements.
The circular amends user eligibility for cost reduction structures in OTC foreign exchange derivatives and overseas commodity hedging by distinguishing listed corporate groups from unlisted companies and increasing the minimum net worth threshold for unlisted entities; eligible users must fair value relevant products at each reporting date, comply with applicable accounting standards and ICAI guidance applying prudence (recognising expected losses and not recognising unrealised gains), make prescribed financial statement disclosures, and maintain a risk management policy explicitly permitting such structures. The accounting treatment is transitional until AS 30/32 or equivalent standards are notified.

Import credit limit for rough diamonds restricted to short-term usance from shipment, with mandatory KYC and AML compliance.
Suppliers' and Buyers' credit, including the usance period of Letters of Credit for import of rough, cut and polished diamonds, is limited to a short-term period from the date of shipment, effective immediately; AD Category I banks must undertake due diligence and comply with KYC and AML standards and closely examine any large or abnormal increases in business to ensure bona fides, while existing related import instructions remain applicable.