Fema Updates

Investment by Foreign Portfolio Investors (FPI): Investment Limits

A.P. (DIR Series) Circular No. 14 dated March 31, 2021

1. Investment Limits for FY 2021-22 a. The limits for FPI investment in Corporate bonds shall remain unchanged at 15% of outstanding stock of securities for FY 2021-22. Accordingly, the revised limits for FPI investment in corporate bonds, after rounding off, shall be as under

(Table – 1)

Table – 1: Limits for FPI investment in Corporate bonds for FY 2021-22
(₹ Crore)
Current FPI limit	5,41,488
Revised limit for HY Apr 2021-Sep 2021	5,74,263
Revised limit for HY Oct 2021-Mar 2022	6,07,039

The revised limits for FPI investment in Central Government securities (G-secs) and State Development Loans (SDLs) for FY 2021-22 will be advised separately. Till such announcement, the current limits (as in Table – 2), shall continue to be applicable.

Table – 2: Limits for FPI investments in G-Sec and SDL
(₹ Crore)
	G-Sec General	G-Sec Long Term	SDL General	SDL Long Term
FPI investment limits	2,34,531	1,03,531	67,630	7,100

FETERS – Cards: Monthly Reporting

A.P. (DIR Series) Circular No. 13 dated March 25, 2021

1. It has been decided to collect more details of international transactions using credit card / debit card / unified payment interface (UPI) along with their economic classification (merchant category code – MCC) through a new return called ‘FETERS-Cards’, using the same web-portal (https://bop.rbi.org.in).

2.         Nodal offices of Authorised Dealers (ADs) may submit FETERS-Cards details on the web-portal in the following manner:

1. For transactions through credit card / debit card / UPI:

• Sale of forex by AD towards international transaction made by Indian resident (to be reported by the card issuing / transaction originating AD); and
  • Purchase of forex by AD under transaction by foreign resident with Indian resident (to be reported by merchant acquirer AD).
  • The information shall be submitted in the following fixed format (details given in Annex):

(i)    For transactions using credit/debit card: MCC X Country X Currency X Amount (Payment / Refund) X Card Status (Present / Not present)

(ii) For transactions through UPI: MCC X Country X Currency X Amount (Payment/Refund) X QR Code Scan (Yes / No)

• AD Banks need to report all card transactions (e.g., through PoS terminals / ecommerce (online purchase) / for transferring funds to bank accounts).

4.          Data submission by ADs:

(I) ADs shall submit the FETERS-Cards data on the web portal (https://bop.rbi.org.in) by using the RBI- provided login-name and password, within seven working days from the last date of the month for which data are being reported. The web-portal provides detailed guidance and help material.

(ii) FETERS-Cards reporting will be implemented for the transactions taking place from April 1, 2021. Hence, details of the transactions in April 2021 may be reported in the first week of May 2021.