Special Currency Basket revision requires banks to apply the updated rupee value and notify affected constituents promptly.
The Reserve Bank of India revised and fixed the rupee value of the Special Currency Basket used under the Deferred Payment Protocols; Authorised Dealer Category I banks must adopt the revised rupee value for transactions and notify their affected constituents. The directions are issued under FEMA and are without prejudice to other statutory permissions or approvals.

Line of Credit for export financing mandates majority Indian content, fixed disbursement windows and FEMA compliance.
Exim Bank's Line of Credit to Mozambique finances a solar module manufacturing plant where at least 75 per cent of contract value must be supplied from India and up to 25 per cent of non-consultancy goods and services may be procured abroad. The Credit Agreement, effective April 23, 2012, prescribes 48-month disbursement limits from project completion for project exports and a 72-month disbursement window from execution for supply contracts.

EEFC retention limit reduced; existing balances partly converted and future forex access conditioned on exhausting EEFC funds.
Circular requires conversion of half of existing EEFC balances into rupee accounts within a short timeframe with compliance reporting; limits future retention in non interest EEFC accounts to half of forex receipts while the remainder must be surrendered for conversion; obliges utilisation of EEFC balances before purchasing additional foreign exchange and extends these rules to Resident Foreign Currency and Diamond Dollar accounts.

Intraday open position limits: authorised dealers permitted expanded daylight limits for rupee-involving positions under FEMA guidance.
The Reserve Bank prescribes that the intra-day open position / daylight limit of Authorised Dealer Category I banks for positions involving the Rupee shall be the greater of five times the Net Overnight Open Position Limit available to them, or the existing intra-day limit approved by the Reserve Bank; the direction replaces the earlier cap tied to the erstwhile Net Overnight Open Position Limit and is issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other statutory permissions.

Use of FCNR(B) funds permitted for resident loans for foreign exchange needs or hedged rupee working capital.
FCNR(B) deposit liabilities may be used by Authorised Dealer Category I banks to make loans to resident constituents for foreign exchange requirements or for rupee working capital/capital expenditure of exporters or corporates that have a natural hedge or a risk management policy, subject to prevailing prudential and interest rate norms, credit discipline and credit monitoring guidelines.

Foreign investment in commodity exchanges: government approval required only for FDI component; registered FIIs exempt.
Government prior approval is required only for the FDI component in commodity exchanges; registered FIIs may invest in commodity exchanges without Government approval, with other existing composite ceiling conditions remaining unchanged. For NBFC leasing and finance activity, FDI up to 100 per cent under the automatic route remains subject to minimum capitalisation, and FDI is permitted only for financial leasing, not operating leasing.

Conversion of imported second-hand machinery excluded from government route FDI equity issuance, other conditions remain in force.
Conversion of imported second-hand machinery is excluded from eligibility for issuance of equity or preference shares under the Government route for FDI, while all other terms of the earlier A.P. (DIR Series) Circulars remain unchanged. Authorised Dealer Category I banks must notify customers; amendments to the FEMA (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 will follow. Directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and are without prejudice to other statutory permissions.

ECB proceeds repatriation required: borrowers and authorised dealers must repatriate rupee use ECB funds to India or face FEMA penalties.
Borrowers must provide a bifurcation of ECB proceeds between foreign currency and Rupee expenditure in Form 83 at the time of obtaining a Loan Registration Number, and must repatriate ECB proceeds intended for Rupee expenditure to India for credit to their Rupee accounts with Authorised Dealer Category I banks; designated AD banks must ensure immediate repatriation after drawdown, and contraventions will attract penal action under the Foreign Exchange Management Act.

Release of foreign exchange: simplified documentation for current account remittances permitted up to a raised threshold.
Authorised Dealers may release foreign exchange for permissible current account remittances on the basis of a simple letter stating applicant and beneficiary details, amount and purpose, without obtaining supporting documents including Form A-2, where payment is by cheque or demand draft and the remittance falls within the revised documentation-free threshold; AD banks must prepare dummy A-2 records for Balance of Payments reporting, and the directions are issued under Sections 10(4) and 11(1) of FEMA, 1999.

Repatriation of NRO funds permitted: transfers to NRE accounts allowed within annual ceiling, subject to applicable tax.
NRIs, as defined in the Deposit Regulations, may transfer repatriable funds from NRO to NRE accounts within the overall annual ceiling, subject to payment of applicable taxes; such credits shall be treated as eligible credits under the Schedule provisions of the Deposit Regulations.

Line of Credit for export finance requires majority Indian sourcing and specific LC and disbursement timelines under FEMA.
A Line of Credit from Export-Import Bank of India finances exports of eligible goods and consultancy services for specified railway projects and mutually approved contracts in Sri Lanka, requiring at least 75% of contract value to be supplied from India and permitting up to 25% of non-consultancy goods to be procured abroad; Letters of Credit and disbursement timings differ for project and supply contracts and shipments must be declared on GR/SDF forms in accordance with Reserve Bank instructions.

Line of Credit for rural electrification: financing mandates majority India-sourced supplies and prescribed disbursement timelines.
Exim Bank's Line of Credit to the Republic of Congo finances eligible exports for a Rural Electrification Project, requiring at least 75 per cent of contract value to be supplied from India with up to 25 per cent of non-consultancy goods and services allowed from outside India; the Credit Agreement fixes the effective date and separate last dates for opening Letters of Credit and disbursement for project exports and supply contracts.

Line of Credit for project and supply exports sets sourcing, disbursement timelines, documentation and commission remittance conditions.
Exim Bank's Line of Credit finances eligible goods, machinery, equipment and consultancy services for the Kabu Hydro Electric Project with at least 75 per cent of contract value supplied from India and up to 25 per cent (excluding consultancy) procured abroad; disbursement windows differ for project and supply contracts. Shipments must be declared on GR/SDF Forms. No agency commission is payable under the LOC, but exporters may remit commission from their own resources or Exchange Earners' Foreign Currency Accounts in free foreign exchange after full realisation and subject to AD Category-I bank compliance with prevailing rules.

External commercial borrowings for working capital permitted for civil aviation under approval route with eligibility and repayment conditions.
ECB are permitted for working capital in the civil aviation sector under the approval route for airlines holding a scheduled operator permit, subject to assessment of cash flow, foreign exchange earnings and debt servicing capability. Such ECBs must be raised within twelve months, have a minimum average maturity of three years, comply with sectoral and individual caps, and be supported by a chartered accountant's certificate of requirement and projected forex cash flows. ECBs for working capital or refinancing are not roll overable and must be repaid only from the borrower's foreign exchange earnings.

Refinancing of external commercial borrowings now permitted at higher all-in-cost under approval route subject to existing ceiling.
Borrowers may refinance or reschedule existing External Commercial Borrowings by raising a fresh ECB at a higher all-in-cost under the approval route, provided the enhanced all-in-cost does not exceed the all-in-cost ceiling prescribed by extant guidelines; the modification is effective immediately and subject to review, with other ECB policy aspects unchanged and regulatory amendments to FEMA regulations to follow.

External Commercial Borrowings liberalisation permits expanded refinancing for power and ECBs for toll maintenance under adjusted routes.
Amendments to the External Commercial Borrowings (ECB) policy allow power-sector companies to use a portion of fresh ECBs for refinancing rupee loans under the approval route, provided a majority of proceeds fund fresh infrastructure capital expenditure, and permit ECBs under the automatic route for maintenance and operation of toll systems when part of the original project; all other ECB parameters and reporting requirements remain unchanged.

Line of Credit conditions require majority Indian-sourced goods and set timelines, documentation and commission remittance rules for exporters.
Exim Bank provided a Line of Credit to finance exports for a Rural Electrification Project in Togo, requiring that a substantial majority of contract value be supplied from India while a limited portion (excluding consultancy) may be procured abroad; the Credit Agreement prescribes timelines for opening Letters of Credit and disbursement. Shipments must be declared on GR/SDF forms. No agency commission is payable under the Line of Credit, though exporters may use own funds or Exchange Earners' Foreign Currency balances to pay commission in free foreign exchange subject to realization and prevailing instructions. Authorized Dealer banks must inform exporters and obtain details from Exim Bank. Directions issued under FEMA.

Authorised Dealer Category-II permission to open Nostro accounts requires one-time central bank approval; existing instructions remain applicable.
Authorised Dealer Category-II entities may open and operate Nostro accounts only after obtaining a one-time prior approval from the Reserve Bank; all other previously issued operational instructions remain unchanged and the directions are issued under the Foreign Exchange Management Act without prejudice to other statutory permissions.

Cross-border inward remittances require enhanced risk-based AML/CFT scrutiny for transactions involving FATF identified jurisdictions.
Authorised Persons (Indian Agents) under the Money Transfer Service Scheme must consider the FATF public statement identifying jurisdictions with ML/TF risks and apply risk based scrutiny to transactions and relationships with those jurisdictions; Sub-Agents must comply mutatis mutandis, Principal Officers should acknowledge receipt, and the directions are issued under FEMA and the PMLA without prejudice to other legal approvals.

Anti-money laundering and terrorist financing: authorised persons must consider FATF country-risk findings in money-changing transactions.
The Reserve Bank circular requires money changing Authorised Persons to consider the FATF public statement identifying jurisdictions with strategic AML/CFT deficiencies, apply enhanced scrutiny and risk mitigation in business with those jurisdictions, ensure agents and franchisees comply mutatis mutandis, notify constituents, and obtain Principal Officer acknowledgement; legitimate transactions remain permitted. Directions are issued under the Foreign Exchange Management Act and the Prevention of Money Laundering Act and Rules.