RESERVE BANK OF INDIA (RBI)

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  1. Export of Goods and Services – Simplification and Revision of Softex Procedure – The simplified and revised Softex procedure was introduced by RBI vide A.P. (DIR Series) Circular No.80 dated February 15, 2012 and since its introduction, the revised procedure for export of software services has been running successfully at the 5 designated centres. RBI has now vide its circular RBI/2012-13/260 A. P. (DIR Series) Circular No. 47 dated 23rd October, 2012 decided to implement the revised procedure in all the STPIs in India with immediate effect. 

    As per the revised procedure, a software exporter, whose annual turnover is at least Rs.1000 crore or who files at least 600 SOFTEX forms annually on all India basis, will be eligible to submit a statement in excel format as detailed in the circular.

  2. Foreign investment in NBFC Sector – Amendment to the Foreign Direct Investment (FDI) Scheme – RBI has in consultation with the Government decided to amend the condition for downstream investment by foreign owned Non Banking Financial Companies (hereinafter referred to as “NBFC”) as mentioned below:
    Earlier Condition Revised condition
    100% foreign owned NBFCs with a minimum capitalisation of US$ 50 million can set up step down subsidiaries for specific NBFC activities, without any restriction on the number of operating subsidiaries and without bringing in additional capital. The minimum capitalization condition as mandated by para 3.10.4.1, therefore, shall not apply to downstream subsidiaries. NBFCs (i) having foreign investment more than 75% and up to 100%, and (ii) with a minimum capitalisation of US$ 50 million, can set up step down subsidiaries for specific NBFC activities, without any restriction on the number of operating subsidiaries and without bringing in additional capital. The minimum capitalization condition as mandated by para 3.10.4.1 of DIPP Circular 1of 2012 dated April 10, 2012 on Consolidated FDI Policy, therefore, shall not apply to downstream subsidiaries.
  3. External Commercial Borrowings (ECB) Policy – Review of all-in-cost ceiling – RBI has vide its circular RBI/2012-13/240 A.P. (DIR Series) Circular No. 40 dated 9thOctober, 2012 announced that the all-in-cost ceiling as specified in A.P. (DIR Series) Circular No. 99 dated March 30, 2012 will continue to be applicable until further review.

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