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Reserve Bank of India (RBI)

January 26, 2012
  1. Foreign investment in Single – Brand Retail Trading Amendment to the Foreign Direct Investment (FDI) Scheme: RBI vide circular RBI/2011-12/348, A. P. (DIR Series) Circular No. 67 dated 13thJanuary, 2012 has notified that FDI up to 100 per cent would be permitted in Single Brand product trading under the Government route subject to the terms and conditions as stipulated in Press Note No. 1 (2012 Series) dated January 10, 2012 issued by Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India. A copy of Press Note No. 1 (2012 Series) dated January 10, 2012 is herewith available http://rbidocs.rbi.org.in/rdocs/content/pdfs/EPR67130112.pdf.
  2. Export of Goods and Services - Forwarder’s Cargo Receipt: RBI vide circular RBI/2011-12/345 A. P. (DIR Series) Circular No.65 dated 12th January, 2012 has declared that authorized dealers may accept Forwarder’s Cargo Receipts (FCR) issued by IATA approved agents, in lieu of bill of lading, for negotiation/collection of shipping documents, in respect of export transactions backed by letters of credit.
  3. External Commercial Borrowings (ECB):  RBI vide circular RBI/2011-12/340 A. P. (DIR Series) Circular No.64 dated 5th January, 2012 has notified as under:
    • The ECB limit for eligible borrowers under the automatic route was enhanced to USD 750 million or equivalent per financial year per borrower for permissible end-uses. Consequent to the enhancement in limits, the revised average maturity guidelines under the automatic route are as follows:-

               a) ECB up to USD 20 million or equivalent in a financial year with minimum average maturity of three years; and

             b) ECB above USD 20 million and up to USD 750 million or equivalent with minimum average maturity of five years.

    • The requirement of average maturity period, prepayment and call / put options specified vide A.P. (DIR Series) Circular No.17 dated December 4, 2006 (for additional amount of USD 250 million) has been dispensed with.

    • The eligible borrowers under the automatic route can raise Foreign Currency Convertible Bonds (FCCBs) up to USD 750 million or equivalent per financial year for permissible end-uses. Similarly, corporates in specified service sectors, viz. hotel, hospital and software, can raise FCCBs up to USD 200 million or equivalent for permissible end-uses during a financial year subject to the condition that the proceeds of the ECB should not be used for acquisition of land.

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