The Reserve Bank of India (RBI) on January 16, 2025, issued an update in the Master Direction – Foreign Investment in India.
The following has been updated namely: -
• In provision 2.23 which states the key term - Unit, in explanation "For the purpose of these directions, “banking channels” shall include any rupee vostro accounts, including Special Rupee Vostro Accounts, permitted to be held by a person resident outside India, in terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016" shall be inserted at the end.
• In provision 6.13, which concerns the Issue of Convertible Notes by an Indian startup company, in clause 6.13.4, after the words "The payment consideration can be received by inward remittance through banking channels or by debit to," the following words shall be inserted: "any repatriable foreign currency or Rupee."
Detailed notification is attached below.
[Notification no. - RBI/FED/2017-18/60]
