Repatriation limits for non-residents clarified; remittances require authorised bank certification, CA certificate and tax compliance.
Remittance facilities for NRIs, PIOs and foreign nationals under FEMA permit repatriation of balances and sale proceeds subject to an annual repatriation limit, Authorised Dealer bank satisfaction, an undertaking by the remitter and a Chartered Accountant's certificate in prescribed formats. Current income may be remitted as debits to NRO accounts or credited to NRE/FCNR accounts where tax obligations are met. AD banks must obtain declarations and preserve documentation, refuse transactions where requirements are unmet, and report suspected evasion; specified nationalities are excluded from certain repatriation facilities.

Establishment of foreign liaison and branch offices regulated by RBI; approvals, eligibility and compliance govern operation and remittance.
Establishment of Liaison, Branch and Project Offices by foreign entities in India requires RBI approval or compliance with specified general permissions; applications are filed in Form FNC via designated AD Category I banks and evaluated under Reserve Bank or Government routes against eligibility criteria including track record and minimum net worth. Liaison Offices are limited to non commercial representative roles and funded by inbound remittances, Branch Offices may carry out prescribed commercial activities but not retail or manufacturing, and Project Offices receive general permission subject to qualifying contracts and funding. All offices must obtain UIN and PAN, submit Annual Activity Certificates and audited accounts, and comply with reporting, remittance and closure procedures.

Liberalised Remittance Scheme permits resident individuals to remit abroad subject to documentation, KYC and reporting obligations.
The Master Circular consolidates rules under FEMA governing resident drawal and remittance of foreign exchange, delegating specified release powers to Authorised Dealers while identifying prohibited transactions and transactions requiring prior Government or Reserve Bank approval under Schedules I-III. It details operational procedures for self declaration releases, documentation and KYC obligations under Section 10(5), surrender and retention of unspent exchange, Resident Foreign Currency accounts, advance remittances and guarantees for import of services, and sets out the terms and reporting and PAN requirements for the Liberalised Remittance Scheme for resident individuals.

Foreign exchange risk hedging rules: permitted products, participant eligibility, documentation and reporting requirements.
Consolidated Reserve Bank master circular establishing permissible participants and hedging products (forwards, swaps, options, interest rate instruments, commodity and freight derivatives, exchange traded currency futures/options), with product specific operational conditions (tenor, notional limits, deliverability, rebooking/cancellation rules), documentation and auditor certification requirements, prudential eligibility and risk management controls for banks, delegated and approval routes for commodity/freight hedging, rules for non resident bank rupee accounts and inter bank dealings, and extensive periodic reporting and surveillance obligations to the Reserve Bank.

Repatriation of sale proceeds restricted: permitted only where acquisition complied with foreign exchange rules and traceable funds are shown.
Acquisition and transfer of immovable property by NRIs, PIOs, foreign missions, persons resident outside India for permitted activities, and foreign nationals of non-Indian origin are regulated under FEMA and RBI notifications. NRIs and PIOs may purchase and transfer non-agricultural property with payments only through permitted banking channels or non-resident accounts; repatriation of sale proceeds is allowed conditionally where acquisition complied with foreign exchange law and repatriation is limited to amounts traceable to permitted foreign exchange/non-resident accounts, with inheritance- and rupee-funded proceeds subject to documentary and tax-clearance requirements and prior approval when exceeding prescribed limits. Specific declaration, permission and documentation requirements apply, including Form IPI and prior RBI permission for certain nationalities.

Rupee Drawing Arrangements regulate non-resident exchange house vostro accounts, requiring approvals, funding, strict controls and reporting.
Rupee Drawing Arrangements require AD Category I banks to obtain Reserve Bank approval for initial tie ups and to inform the Reserve Bank of subsequent arrangements; accounts must be separately maintained, operate on a credit basis without overdrafts, be funded by sale of permitted foreign currency, and used only for specified inward personal remittances and permitted payments. Arrangements may follow DDA, Non DDA or Speed Remittance procedures with prescribed auditor/inspection regimes, lien and collateral requirements based on exchange house vintage, and strict KYC/AML/CFT, internal control, reporting and audit obligations.

Non-resident ordinary rupee accounts: rules on permissible credits, debits, repatriation and compliance obligations clarified.
Regulation of acceptance, operation and repatriation of funds in Non-Resident Ordinary Rupee (NRO) Accounts sets eligibility for persons resident outside India, permitted account forms and joint-holdings, and details permissible credits (inward remittances, legitimate dues, sale proceeds, specified gifts/loans) and debits (local rupee payments, remittance of current income, remittances for bonafide purposes and transfers to NRE accounts subject to overall annual ceilings and tax compliance). Repatriation of balances and sale proceeds requires documentary evidence, an undertaking, and a Chartered Accountant's certificate; specified nationalities face restrictions and certain repatriations require prior Reserve Bank permission.

Money Transfer Service Scheme mandates inward only remittances and strict KYC/AML compliance and reporting by Indian Agents.
The Master Circular consolidates MTSS regulation: permits only inward personal remittances to individuals, sets authorisation criteria for Indian Agents, conditions for Overseas Principals, and collateral and disbursement limits. It mandates a detailed KYC/AML/CFT regime-risk based customer acceptance, identification, enhanced due diligence for high risk customers (including PEPs), transaction monitoring, appointment of a Principal Officer, CTR/STR reporting to FIU IND, record preservation, periodic collateral review, and Reserve Bank inspection and renewal procedures under FEMA.

Line of Credit enables export financing under sourcing, LC/disbursement and reporting conditions for eligible contracts from India.
A Line of Credit by Exim Bank to the Government of Zambia finances eligible exports of goods, machinery, equipment and consultancy services that qualify under the Foreign Trade Policy. At least 75% of contract value must be supplied from India, with up to 25% non-consultancy goods/services procured abroad. The Credit Agreement is effective from June 8, 2012; Letters of Credit and disbursements follow prescribed time limits. Shipments require GR/SDF declarations. No agency commission is payable under the LOC, though exporters may use own resources or EEFC balances for commission remittance subject to AD Category-I bank compliance. Directions issued under FEMA remain without prejudice to other statutory permissions.

Foreign investment in India: updated sectoral caps, entry routes, conditions and prohibited sectors specified under revised FEMA annexes.
The Reserve Bank aligned Annex A and Annex B of Schedule 1 to the FEMA Regulations with the Government's Consolidated FDI Policy: Annex A lists sectors where FDI is prohibited; Annex B prescribes sector specific FDI caps, entry routes (Automatic or Government) and operative conditions, including minimum capitalization, divestment and sourcing requirements, lock in periods, security and licensing conditions. AD Category I banks are to inform constituents; amendments to FEMA regulations will be issued separately; directions are issued under the Foreign Exchange Management Act without prejudice to other statutory permissions.

External Commercial Borrowings: revised Form-83 for Loan Registration Number streamlines LRN reporting while retaining existing ECB conditions.
Borrowers seeking a Loan Registration Number (LRN) for External Commercial Borrowings must submit the revised Form-83 format effective July 1, 2012, with an annex illustrating calculation of average maturity. This change rationalises information required for LRNs while all other ECB conditions-eligible borrowers, recognized lenders, end use restrictions, all-in-cost, average maturity, prepayment, refinancing and reporting-remain unchanged and must be complied with. Category-I Authorised Dealer banks must notify constituents; directions are issued under the Foreign Exchange Management Act without prejudice to other required permissions.

Foreign investment limits in government securities and infrastructure debt revised, relaxing maturity and lock in requirements for eligible foreign investors.
The circular increases the limit for FII investment in Government securities and reallocates sub-limits, including a sub-limit requiring a residual maturity of at least three years at first purchase, and permits certain long-term institutional investors to register with SEBI to invest. For infrastructure debt, the lock-in period is uniformly reduced to one year and the residual maturity at first purchase is set at fifteen months; QFIs may invest in mutual fund schemes with at least 25% infrastructure assets under the existing mutual fund sub-limit. Amendments to FEMA regulations will follow.

External Commercial Borrowings for rupee loan repayment allowed under approval route with eligibility and end use safeguards.
External Commercial Borrowings may be used, via the approval route, for repayment of outstanding Rupee loans used for capital expenditure and for fresh Rupee capital expenditure by eligible manufacturing and infrastructure companies that are consistent foreign exchange earners and not on the RBI default/caution lists. The overall facility and per company limits are tied to export earnings; drawdown must occur promptly after obtaining the Loan Registration Number. Applications in Form ECB require statutory auditor certification and lender/AD certification of outstanding Rupee loans. Designated AD Category I banks shall monitor end use, prevent sourcing of foreign exchange for repayment from Indian markets, and note that Indian banks cannot provide guarantees; all ECB conditions remain applicable.

Annual return on Foreign Liabilities and Assets reporting: electronic submission required annually; AD banks must notify constituents.
The circular requires Indian companies with inbound or outbound foreign investment to submit an annual return on Foreign Liabilities and Assets using a revised electronic form with guidance and validations available on the central bank website; the form must be filled, validated and e-mailed by the prescribed annual deadline. Authorised Dealer Category I banks must notify constituents; amendments to applicable foreign exchange regulations will follow. Directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act and are without prejudice to other legal approvals.

Money Transfer Service Scheme remittance cap raised; increases permitted inbound transfers per beneficiary while APs remain responsible for compliance.
The Reserve Bank amended the Money Transfer Service Scheme to raise the permitted number of inward cross border remittances a single individual beneficiary may receive in a calendar year; all other Notification conditions remain unchanged. The change applies mutatis mutandis to Sub Agents, and Indian Authorised Persons bear sole responsibility to ensure Sub Agent compliance and to inform their constituents. The directions are issued under the Foreign Exchange Management Act and are without prejudice to other statutory permissions.

UIN communication by auto email confirms allotment and enables online reporting of overseas direct investment remittances.
AD Category I banks may generate the Unique Identification Number (UIN) online for the automatic route; the UIN will be communicated by an auto generated e mail, which shall constitute confirmation of allotment, and subsequent remittances under the automatic and approval routes must be reported online in Part II of Form ODI only after receipt of that electronic confirmation. Physical submission of Form ODI for approval route applications remains required alongside online Part I reporting.

Special Currency Basket valuation revised; authorised dealer banks instructed to apply updated rupee conversion and notify constituents.
Revision of the Special Currency Basket rupee valuation is communicated to Authorised Dealer Category I banks, with the circular notifying a further revision effective from May 9, 2012. AD Category I banks are directed to apply the updated rupee valuation in relevant transactions and to bring the circular's contents to the notice of their constituents. The directions are issued under the statutory powers in the foreign exchange legislation and are without prejudice to permissions or approvals required under other laws.

Net Overnight Open Position Limit excludes exchange currency derivatives and bans netting with OTC, requiring exchange-only close-outs.
Positions in exchange-traded currency futures and options are excluded from banks' Net Overnight Open Position Limit; exchange positions cannot be netted with OTC positions and must be closed on the exchange. Trading member banks face a prescribed exchange position cap, and AD Category I banks must reduce positions to the specified limits by the compliance deadline, pursuant to directions issued under statutory foreign exchange powers.

Exchange earner foreign currency conversion required for available EEFC balances, excluding amounts earmarked for outstanding hedges.
The Reserve Bank directed conversion of a portion of EEFC account balances into rupee balances to be credited to rupee accounts per account holder directions; the conversion applies only to the available EEFC balance after netting off amounts earmarked for outstanding forward and option contracts booked before the earlier notification. Authorised Dealer Category I banks must implement the conversion, notify their constituents, and note that the directions are issued under FEMA and do not affect other statutory permissions.

Foreign investment in NBFC leasing: only financial leases permitted under automatic route; operating leases excluded.
FDI up to 100% in NBFC "leasing and finance" under the automatic route, subject to minimum capitalisation norms, applies only to financial leases; operating leases are excluded. AD Category I banks should notify their customers; amendments to FEMA 2000 will be separately notified and the directions are issued under the Foreign Exchange Management Act without prejudice to other statutory permissions.