FDI powers to RBI may cut processing time sharply, to improve ease of doing biz
The rule change applies only to foreign direct investment and not to foreign portfolio investment
Synopsis
In a notification dated July 27, the central government gave the RBI the powers to administer the FDI regime, which include allowing the central bank to interpret various rules and grant exemptions pertaining to FDI. The change could cut down the processing time for FDI applications to 5-6 weeks compared with 3-4 months currently, market participants say.
MUMBAI:Foreign investors could experience an improved ease of doing business environment in the coming days and weeks after the government’s rule change gave the Reserve Bank of India greater say in administering all issues relating to foreign direct investment (FDI). In a notification dated July 27, the central government gave the Reserve Bank of India (RBI) the powers to administer the FDI regime, which include allowing the central bank to
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