<h1>RBI Clarifies: Amendments to FEMA 1999 Don't Remove Approval Need for FDI; Reporting Still Required for Capital Inflow.</h1> The Reserve Bank of India clarified that amendments to the Foreign Exchange Management Act, 1999, do not eliminate the need for its approval for foreign direct investments (FDI) in India. Indian companies receiving FDI do not need prior RBI approval but must report capital inflow and share issuance in prescribed formats. FDI can be made through the automatic route, requiring no prior approval, or the approval route, needing Foreign Investment Promotion Board approval. Both routes must comply with FDI policy and FEMA regulations.