Date: 2016-02-01Category: Not ApplicableState: Union GovernmentCountry: India
Foreign Direct Investment –Reporting under FDI Scheme, Mandatory filing of form ARF, FCGPR and FCTRS on e-Biz platform and discontinuation of physical filing from February 8, 2016
**Summary:**
This circular, RBI/2015-16/303, A.P. DIR Series Circular No. 40, issued by the Reserve Bank of India (RBI) on February 1, 2016, mandates the exclusive online filing of Foreign Direct Investment (FDI) related returns through the eBiz portal, effective February 8, 2016. This policy change discontinues the acceptance of physical submissions for the following forms: Advance Remittance Form (ARF), Form FCGPR (reporting the issue of eligible instruments to overseas investors), and Form FCTRS (reporting transfer of securities between resident and non-resident individuals). The circular is addressed to all Category I Authorised Dealer (AD Category I) banks. These banks are instructed to inform their customers and provide the necessary guidance and assistance for uploading these forms via the eBiz platform. The directives are issued under the authority of Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999. This initiative aims to streamline FDI reporting and promote ease of doing business. The circular references previous directives, including A.P. DIR Series Circular No.102 dated February 11, 2014; A.P. DIR Series Circular No.6 dated July 18, 2014; A.P.DIR Series Circular no.77 dated February 12, 2015; A.P.DIR Series Circular No. 95 dated April 17, 2015 and A.P.DIR Series Circular No.9 August 21, 2015. The Principal Chief General Manager, B. P. Kanungo, is the signatory of the circular.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the country's monetary policy and financial system.
Foreign Direct Investment: An investment made by a firm or individual in one country into business interests located in another country.
eBiz project: A Government of India initiative to provide online services related to starting and running a business.
Advance Remittance Form (ARF): A form used by companies to report Foreign Direct Investment (FDI) inflows to the Reserve Bank of India.
FCGPR Form: A form submitted to the Reserve Bank of India (RBI) for reporting the issue of eligible instruments to overseas investors against FDI inflow.
FCTRS Form: A form submitted to the Reserve Bank of India (RBI) for transfer of securities between a resident and a person outside India.
Foreign Exchange Management Act (FEMA), 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
B. P. Kanungo: Principal Chief General Manager at Reserve Bank of India
RESERVE BANK OF INDIA
Mumbai - 400 001
RBI/2015-16/303 February 01, 2016
A.P. (DIR Series) Circular No. 40
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Foreign Direct Investment –Reporting under FDI Scheme, Mandatory filing of
form ARF, FCGPR and FCTRS on e-Biz platform and discontinuation of
physical filing from February 8, 2016
Attention of Authorised Dealers Category-I (AD Category - I) banks is invited to
the provisions of the Foreign Exchange Management (Transfer or Issue of
Security by a Person Resident outside India) Regulations 2000, notified by the
Reserve Bank vide Notification No. FEMA 20/2000-RB, dated 3rd May 2000, as
amended from time to time. Attention of AD Category – I banks is also invited to
A.P. (DIR Series) Circular No.102 dated February 11, 2014; A.P. (DIR Series)
Circular No.6 dated July 18, 2014; A.P.(DIR Series) Circular no.77 dated February
12, 2015; A.P.(DIR Series) Circular No. 95 dated April 17, 2015 and A.P.(DIR
Series) Circular No.9 August 21, 2015.
2. With a view to promoting the ease of reporting of transactions related to Foreign
Direct Investment (FDI), the Reserve Bank of India, under the aegis of the e-Biz
project of the Government of India has enabled online filing of the following
returns with the Reserve Bank of India viz.
- Advance Remittance Form (ARF) which is used by the companies to
report the FDI inflows to RBI;- FCGPR Form which a company submits to RBI for reporting the issue
of eligible instruments to the overseas investor against the above
mentioned FDI inflow; and
- FCTRS Form which is submitted to RBI for transfer of securities
between resident and person outside India.
3. At present both the options, i.e. online filing and physical filing of
abovementioned forms, are available to the users.
4. Based on the experience it has been decided that beginning February 8, 2016
the physical filing of forms ARF, FCGPR and FC-TRS will be discontinued and
forms submitted in online mode only through e-Biz portal will be accepted.
5. AD Category-I banks may bring the contents of this circular to the notice of their
customers / constituents concerned. They are advised to extend necessary
guidance/ assistance to their constituents for uploading the abovementioned forms
on the e-Biz platform.
6. The directions contained in this circular have been issued under section 10(4)
and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(B. P. Kanungo)
Principal Chief General Manager