Loan-to-value adjustment for housing loans: banks may include stamp duty and documentation charges for low-cost dwellings.
Banks may include stamp duty, registration and other documentation charges in the Loan-to-Value (LTV) ratio calculation for dwelling units whose cost does not exceed Rs. 10 lakh to assist EWS and LIG borrowers. For projects sponsored by Government or Statutory Housing Authorities, banks may disburse loans according to the authorities' prescribed payment stages-even if not linked to construction stages-provided the authority has no history of project non-completion.

NGO registrations cancelled for failure to file FC 6 annual returns; district authorities to manage assets.
The Central Government cancels the FCRA registration certificates of 1,142 associations in the erstwhile State of Andhra Pradesh for failure to file mandatory annual returns in form FC 6 for 2009 10 to 2011 12, constituting violation of Section 18 read with Rule 17(1). Show cause notices were issued to 1,441 associations; 229 replies are under examination, 510 notices were returned undelivered and 632 associations did not respond. Cancellation is effected under Section 14 of the FCRA, 2010, with District Magistrates directed to manage the associations' assets and the Reserve Bank of India notified.

Trade credit all-in-cost ceiling remains applicable, extending the regulatory cap on import finance and subject to review.
The circular states that the existing all-in-cost ceiling on trade credits for imports into India will continue to apply until March 31, 2015 and is subject to review thereafter; all other aspects of the Trade Credit policy remain unchanged, Category I Authorized Dealer banks must inform their constituents, and the directions are issued under the Foreign Exchange Management Act without prejudice to other statutory permissions.

All-in-cost ceiling for external commercial borrowings remains in force and AD banks must notify customers accordingly.
The circular maintains the all-in-cost ceiling for External Commercial Borrowings as previously specified, extends its applicability until the designated review date, leaves all other ECB policy provisions unchanged, directs Authorized Dealer Category I banks to inform constituents and customers, and issues the directions under Sections 10(4) and 11(1) of the Foreign Exchange Management Act without prejudice to other legal permissions.

Foreign investment cap in insurance sector revised to permit higher foreign equity under automatic and government routes.
The policy amends the insurance-sector foreign investment regime to permit aggregate foreign investment up to 49 per cent of paid-up equity, with investment up to 26 per cent under the automatic route and any additional FDI above 26 per cent and up to 49 per cent requiring government approval; the cap applies equally to insurance companies and specified intermediaries and is subject to Insurance Act compliance, regulator licensing, resident Indian ownership and applicable FEMA/SEBI and RBI pricing rules.

Import of gold: nominated banks may import on consignment while domestic sales require upfront payment and metal loans remain permitted.
The circular clarifies that the obligation to export applies only to unutilised gold imported before abolition of the prior scheme; nominated banks may import gold on a consignment basis and all domestic sales must be against upfront payment, with banks permitted to grant gold metal loans. Star and Premier Trading Houses may import on delivery against payment without end use restrictions, and imports of coins and medallions are permitted though banks remain temporarily restricted from selling them. Directions are issued under the Foreign Exchange Management Act.

Re-entry into FCY INR swaps permitted only after expiry of the original swap tenor to hedge surviving underlying exposures.
Residents with surviving underlying exposures may, after cancellation of a swap contract, re-enter into a fresh Foreign Currency-INR swap only after the expiry of the tenor of the originally cancelled swap; all other operational guidelines, terms and conditions governing FCY-INR swaps remain unchanged.

Foreign Direct Investment reporting enabled on e Biz platform, allowing online ARF and FCGPR filing with AD verification for UIN allocation.
Enables online reporting of Foreign Direct Investment on the e Biz platform via ARF and FCGPR services: companies upload digitally signed forms; Authorised Dealer Category I banks must download, verify and re upload verified forms for RBI processing and Unique Identification Number allocation. The online facility is additional to the existing manual reporting, and ADs must access the portal through NIC provided VPN accounts and assist customers; VPN financial arrangements will be finalised separately. The directions are issued under FEMA and do not affect other statutory permissions.

Import payment procedure: requirement of Form A-1 removed; authorised banks must verify transaction bonafides under FEMA.
Dispenses with the requirement of submitting Form A-1 for import payments; AD Category I banks must obtain requisite importer details and satisfy themselves of the bonafides of transactions before effecting remittances. Directions issued under Section 10(4) and Section 11(1) of FEMA, 1999 and without prejudice to other legal permissions.

Line of credit conditions require majority India sourced supplies, specified letter of credit and disbursement timelines and reporting.
Exim Bank's LOC to the Government of the Republic of Gambia finances eligible exports for an electrification project, requiring at least 75 percent of each contract's goods and services to be supplied from India and permitting up to 25 percent foreign procurement. The agreement prescribes distinct timelines for opening Letters of Credit and disbursement, mandates EDF/SDF reporting for shipments, disallows agency commission under the LOC while permitting exporter-funded commission from permitted forex balances subject to AD Category I bank oversight, and is issued under sections 10(4) and 11(1) of FEMA, 1999.

Export advance compliance: banks must ensure timely shipment, report overdue advances and refer suspicious cases for enforcement.
An exporter receiving an advance must complete shipment within the stipulated period; AD Category I banks must monitor overdue advances, exercise KYC and AML due diligence to ensure bona fide flows, refer doubtful or chronic defaulters to the Directorate of Enforcement, and submit a quarterly statement of overdue export advances as per the Annex within 21 days from quarter end, under powers conferred by the Foreign Exchange Management Act, 1999.

Minimum residual maturity requirement for FPI debt investments mandates long-term maturities, excluding CPs and short-optional instruments.
FPIs must make all new investments in Indian debt instruments with a minimum residual maturity of three years; fresh investments in commercial paper and in instruments with optionality exercisable within three years are prohibited. Investment in amortised instruments is permitted only where the instrument's duration is three years or longer. Arrangements that negate these maturity or optionality constraints do not conform with the prescribed directions, and authorised dealer banks must communicate and enforce these requirements under the stated regulatory powers.

Reinvestment of coupons in government securities permitted outside FPI investment limits, with reporting and operational guidance required.
FPIs may reinvest coupons received on existing government securities into government securities on a repatriation basis, and such reinvestments shall be kept outside the applicable FPI limit for government securities; AD Category I banks must report these investments as prescribed and SEBI will issue further operational guidelines.

Minimum maturity requirement: FPIs must place future debt investments with minimum three year residual maturity and avoid money market funds.
All future FPI debt investments must have a minimum residual maturity of three years, applying to government securities and corporate bond investments and to limits vacated on sale or redemption, which must be reused for corporate bonds meeting the same maturity requirement. FPIs are prohibited from making further investments in liquid and money market mutual fund schemes. There is no lock in; FPIs may sell existing holdings, including those with less than three years' residual maturity, to domestic investors, and the directions take immediate effect.

Foreign direct investment carve-out for medical devices establishes distinct FDI treatment separate from pharmaceuticals.
Foreign direct investment policy for pharmaceuticals has been amended to carve out medical devices as a separate category with immediate effect, changing the regulatory treatment previously applied to medical devices and prompting amendments to the Foreign Exchange Management Regulations; Authorised Dealer Category I banks are to notify customers and the directions operate without prejudice to other statutory approvals.

Line of Credit for export finance enables majority-India sourcing, EDF/SDF compliance and restricted agency commission payment.
A Line of Credit from the Export-Import Bank of India to the Government of the Republic of Senegal finances a Rice Self-Sufficiency Programme, funding eligible goods, machinery, equipment and consultancy services eligible under India's Foreign Trade Policy; at least three quarters of each contract price must be supplied from India with up to one quarter procured outside India. Shipments must be declared on EDF/SDF forms; no agency commission is payable under the Line of Credit though exporters may use own resources or EEFC balances for commission after realization, subject to remittance rules.

AML/CFT guidance for money changers requires enhanced risk measures and compliance while permitting legitimate transactions.
Authorised persons in money changing activities must consider FATF updates on jurisdictions with AML/CFT deficiencies and apply enhanced risk sensitive measures while legitimate transactions remain permissible; franchisors must ensure agents and franchisees comply. The circular mandates incorporation of the FATF information into risk assessments, communication to constituents, record maintenance, and adherence to customer due diligence, transaction monitoring and reporting obligations under applicable foreign exchange and anti money laundering frameworks.

Anti Money Laundering standards: Indian agents under MTSS must apply FATF guidance to cross border inward remittances.
Authorised Persons (Indian Agents) under the Money Transfer Service Scheme must apply FATF guidance on AML/CFT for cross border inward remittances, consider FATF's updated statement on high risk jurisdictions, and ensure that Sub Agents comply with these guidelines; legitimate transactions are not barred and the directions are issued under statutory powers.

Line of Credit for Nigerian power projects mandates majority India-sourced supplies, defined LC/disbursement timelines and FEMA compliance.
Exim Bank's Line of Credit to Nigeria finances eligible Indian exports for specified power projects, requiring a substantial majority of contract value to be supplied from India while allowing a minority portion to be procured abroad; the agreement fixes distinct timelines for opening Letters of Credit and disbursement for project exports and supply contracts, mandates GR/SDF shipment declarations, prohibits agency commission payment under the LOC (permitting exporter-funded commission in free foreign exchange subject to AD bank rules), and is issued under FEMA powers.

Line of Credit requires majority India sourced supplies and EDF/SDF compliance, with commission remittance from exporter resources.
Exim Bank extended a Line of Credit to the Government of the Republic of Gambia to finance eligible Indian exports for replacement of asbestos water pipes; eligible supplies must be majority India-sourced, with differing time-limits for Letters of Credit and disbursement for project versus supply contracts. Shipments must be declared on EDF/SDF forms. No agency commission is payable under the LOC, though exporters may remit commission from their own resources or Exchange Earners' Foreign Currency Account balances after realization, subject to prevailing instructions. Directions issued under FEMA do not affect other required approvals.