June 15, 2015
1. Foreign Exchange Management (Permissible Capital Account Transactions) (Third Amendment) Regulations, 2015 The Reserve Bank of India (RBI) has amended the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, vide Notification No. FEMA. 341/2015-RB dated May 26, 2015. RBI has allowed resident individual to draw from an authorized person foreign exchange not exceeding USD 250,000 per financial year for a capital account transaction specified in Schedule I of the above said regulation.. Where the drawl of foreign exchange by a resident individual for any capital account transaction specified in Schedule I exceeds USD 250,000 per financial year, the limit specified in the regulations relevant to the transaction shall apply with respect to such drawl. 2. External Commercial Borrowings (ECB) denominated in Indian Rupees (INR) – Mobilisation of INR The Reserve Bank of India (RBI) has notified the procedure facilitate ECB lending denominated in INR by overseas lenders vide Circular No. 103 dated May 21, 2015. RBI has now allowed lenders to enter into swap transactions with their overseas bank which shall in turn, enter into a back-to-back swap transaction with any AD Cat-I bank in India as per the procedure laid down in the above said circular. 3. Export of Goods and Services- Declaration of Exports of Goods/Software The Reserve Bank of India (RBI) vide Circular No. 101 dated May 14, 2015, has decided to dispense with the requirements of declaring the export of Goods/Software in the SDF in case of export taking place through the EDI ports, as mandatory statutory requirements contained in the SDF have been subsumed in the Shipping Bill format, to liberalize and simplify the procedure.