Overseas direct investment norms to be made simpler, based on principles

The Reserve Bank of India (RBI) will rationalise regulations for overseas direct investment (ODI) in order to make them simpler and more principles-based. The strategy for 2020-21 is to focus on consolidating and carrying forward all the initiatives which were undertaken in the previous year. 

Also, the emphasis will remain in ensuring that the Foreign Exchange Management Act (FEMA) operating framework is in sync with the needs of the evolving macroeconomic environment.

The regulator also intends to introduce late submission fee for delayed reporting of overseas direct investments (ODI) by Indian parties and resident Indians.

Outward direct investment by Indian entities remained robust