Line of Credit to finance eligible Indian exports to ECOWAS with sourcing requirements and RBI compliance obligations.
Exim Bank made available a Line of Credit to EBID to finance eligible Indian exports to ECOWAS member states; exports must meet Foreign Trade Policy eligibility and at least 75% of contract value must be supplied from India (remaining 25% excluding consultancy may be procured outside India). The Credit Agreement effective date and distinct timeframes apply for Letters of Credit and disbursement: 48 months for project exports from scheduled completion and 72 months for supply contracts from execution. Shipments must be declared on GR/SDF forms; no agency commission under the LOC, though exporters may use own funds or EEFC balances for commission subject to AD Category-I bank compliance. Directions issued under FEMA sections 10(4) and 11(1).

Foreign Direct Investment rules: sectoral caps, entry routes and reporting obligations govern incoming investment and compliance, with penalties for violations.
Consolidated FDI policy defines eligible investors and instruments, prescribes Automatic and Government entry routes, and details pricing, issuance and transfer requirements including the 180 day issuance rule and valuation standards. It sets methodology for computing direct and indirect foreign investment (covering downstream/cascading investments), specifies sectoral caps and conditionalities, and mandates reporting/forms (FC GPR, FC TRS, annual return on foreign liabilities and assets). Enforcement and penalties for FEMA contraventions, and FIPB/Government approval levels are also provided.

Foreign direct investment rules: entry routes, sectoral eligibility, pricing and mandatory reporting govern inbound investment flows.
The Consolidated FDI Policy prescribes the framework for inbound foreign direct investment: definitions of eligible investors and instruments; automatic and government entry routes; sectoral eligibility and caps; valuation and pricing rules for equity and convertible instruments; timelines and documentation for issuance and transfers, including Forms FC-GPR and FC-TRS; rules for conversion of non-cash obligations into equity subject to entry route and sectoral limits; downstream investment computation and ownership/control tests; sectoral conditionalities and security clearances; mandatory reporting, repatriation rules; and FEMA enforcement with adjudication and compounding mechanisms.

Special Currency Basket revision updates rupee valuation effective March 13, 2012, affecting AD Category I bank obligations under FEMA.
AD Category I banks are notified of a revision to the rupee value of the Special Currency Basket to Rs.70.965327, effective March 13, 2012, following a revision on March 7, 2012; banks must inform their constituents. Directions are issued under FEMA sections 10(4) and 11(1) and are without prejudice to permissions required under other laws.

Authorised Dealer Category II permission expands forex services: issue prepaid cards and open nostro accounts under strict compliance.
Authorised Dealer Category II may issue forex pre-paid cards to residents travelling abroad subject to KYC/AML/CFT compliance, with settlement of such cards effected through Authorised Dealer Category I. They may also open one Nostro account per currency solely for settlement of permissible remittances, not for prepaid card settlement; no idle balances shall be maintained, and the accounts will be subject to reporting requirements.

Reporting obligations for gold imports: banks must file prescribed half yearly and monthly returns on quantities and values.
Authorised Dealer Category I banks must submit two prescribed returns on gold imports in the Gems & Jewellery sector: a half yearly statement of quantity and value by mode of payment distinguishing nominated banks/agencies and EOUs/SEZs (Annex A), and a monthly statement of monthly and cumulative year to date quantity and value for non bank nominated agencies, EOUs and SEZs (Annex B). Both returns are required even if nil and may be emailed; other terms of the earlier circular remain unchanged.

Redemption of prepaid travel card balances required; issuers must refund unutilised amounts promptly subject to unsettled transactions and fees.
Issuers of international prepaid/travel cards must redeem unutilised balances immediately on request, while retaining only amounts authorised but unclaimed/not settled by acquirers until settlement, a small retained balance for pipeline transactions pending settlement, and transaction fees/service tax payable in rupees; authorised persons may hold authorised but unsettled amounts only until processing within the prescribed settlement timeframe.

Overseas direct investment accounts now allowed abroad subject to host country routing, use for JV/WOS investments and prompt repatriation.
Indian parties may open, hold and maintain a Foreign Currency Account abroad for overseas direct investment where the host country mandates routing through a designated account. Eligibility requires compliance with FEMA overseas direct investment provisions and host-country rules. Remittances to the account must be used only for equity investment in JV/WOS; dividends and other entitlements must be repatriated to India within thirty days of credit. Annual debits/credits must be reported to the designated AD bank with a statutory auditor's certificate of compliance. The account must be closed immediately or within thirty days of disinvestment or cessation.

All-in-cost ceiling for External Commercial Borrowings extended, preserving enhanced cost limits by maturity for a further period.
The Reserve Bank directed continuation of enhanced all-in-cost ceilings for External Commercial Borrowings: 350 basis points over six-month LIBOR for average maturities of three years up to five years, and 500 basis points for maturities exceeding five years, applicable until September 30, 2012 and subject to review. Authorised Dealer Category-I banks must notify customers. The measures are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999. A related press release applies an all-in-cost of 350 basis points over six-month LIBOR to trade credit up to one year.

Discontinuation of printed GR forms: GR forms now available only online, with automatic GR numbering and bank notification required.
Printed GR forms will no longer be supplied by Reserve Bank Regional Offices; GR forms are available only online and must be downloaded and printed on legal size paper with appropriate page-setup, with the GR number allotted automatically when the document is sent to the print queue; AD Category I banks must notify their constituents; directions issued under Foreign Exchange Management Act powers without prejudice to other required permissions.

All-in-cost ceiling continued for trade credit and ECB, maintaining maturity-based pricing and inclusive fee caps.
Continuation of the enhanced all-in-cost ceiling for trade credits for imports retains a reference to six month LIBOR plus an additional margin for maturities up to one year and specifies that the all in cost ceiling includes arranger, upfront and management fees, handling/processing charges, out of pocket and legal expenses. The related statement also continues maturity segmented all in cost ceilings for ECB, confirms applicability until the stated review date, and records that the directions are issued under the foreign exchange statute and are subject to other legal permissions.

Overseas investment liberalisation permits residents to acquire foreign qualification, service-consideration and ESOP shares within LRS limits.
Resident individuals are granted general permission to acquire foreign equity as qualification shares for directorship (subject to host-country requirements and within LRS limits), as consideration for professional services or Director's remuneration (within LRS limits), and to purchase shares under foreign ESOPs offered globally on a uniform basis irrespective of the issuing company's stake in the Indian employer, provided an Annual Return is filed through the AD Category I bank; AD banks may permit remittances and regulatory amendments will follow.

Overseas direct investment liberalisation: expanded recognition of charges, bank guarantees, guarantees, and CCPS treatment.
Indian parties may seek RBI approval to create charges (pledge, mortgage, hypothecation) on their immovable, movable and other financial assets to secure overseas JV/WOS obligations within the overall financial commitment limit, subject to no-objection from Indian lenders and forthcoming reporting requirements; bank guarantees backed by counter-guarantee or collateral and personal guarantees by indirect resident promoters are to be reckoned or permitted respectively, CCPS are to be treated as equity, and financial commitment without equity may be considered under approval route with host-country compliance.

Repayment to NRE accounts permitted where original loan was inward remittance and lender is eligible for NRE/FCNR(B) status.
Repayment of loans from close relatives outside India may be credited to the lender's NRE or FCNR(B) account only if the original loan to the resident was by inward remittance through normal banking channels or by debit to the lender's NRE/FCNR(B) account and the lender is eligible to open such accounts; such credit will be treated as an eligible credit to NRE/FCNR(B) accounts under Para 3(j) of Schedule 1 read with Para 5 of Schedule 2 of the Deposit Regulations.

Foreign investment limits: companies must notify the regulator and certify compliance before raising aggregate FII/NRI ceilings.
When an Indian company raises the aggregate FII or NRI investment limit to the applicable sectoral or statutory ceiling, it must immediately intimate the Reserve Bank and submit a Company Secretary's Certificate certifying compliance with the Foreign Exchange Management Act and Foreign Direct Policy. The regulator monitors ceilings daily, uses an operational cut-off below the legal limit to caution designated bank branches, requires reporting of proposed purchases by link offices, and grants clearances on a first-come-first-served basis until the limit is reached, after which purchases are stopped and public notice issued.

Foreign venture capital investment: FVCIs may buy eligible VC securities via private purchase or exchange trading, subject to applicable regulations.
SEBI registered FVCIs may acquire eligible securities of IVCUs and VCFs by private arrangement or third party purchase, and may also purchase on recognized stock exchanges, provided they comply with the applicable FEMA schedule and the FVCI regulatory framework; AD Category I banks must notify customers and regulatory amendments will be separately notified.

Reporting periodicity for Diamond Dollar Accounts: shifted to quarterly submission, preserving prior conditions under FEMA authority.
AD Category I banks must submit details of firms/companies holding Diamond Dollar Accounts, with opening and closing dates, on a quarterly basis to the Chief General Manager in Charge, Foreign Exchange Department, Trade Division, Reserve Bank of India, by the 10th of the month following the quarter; other terms in prior circulars remain unchanged and the directions are issued under the Foreign Exchange Management Act.

Special Currency Basket revision mandates authorised dealer banks to adopt updated rupee valuation and notify their constituents.
The Reserve Bank of India notified a re-fix of the rupee value of the Special Currency Basket, superseding the earlier indicated figure, and directed Category I Authorised Dealer banks to adopt and communicate the revised valuation to their constituents with effect from the operative date. The circular states that these directions are issued under the Foreign Exchange Management Act and are without prejudice to any other statutory permissions or approvals.

Liberalised Remittance Scheme clarified: resident eligibility, guardian countersign for minors, family consolidation, and permitted art purchases.
Clarification of the Liberalised Remittance Scheme confirms availability to all resident individuals including minors (whose applications must be countersigned by their natural guardian), allows consolidation of remittances for family members subject to individual compliance, permits purchase of objects of art subject to other laws, and attaches a modified application cum declaration requiring certification of aggregate remittances within the prescribed limit, source of funds, beneficiary details, and an authorised-dealer certificate of conformity.

FII investment in to be listed debt securities requires listing within fifteen days or immediate disposal/redemption follows.
SEBI registered FIIs/sub accounts may invest in primary issuances of NCDs/bonds only if the issuer commits to list those securities within 15 days of investment; failure to list within 15 days requires the FII/sub account to immediately dispose of the securities by sale to a third party or to the issuer, and offer terms must require the issuer to redeem or buy back the securities in that event.