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Indian central bank simplifies investment procedures

The Reserve Bank of India, or RBI, has simplified rules and procedures for overseas investments here of up to $ 150 million, officials said.

"Automatic approvals for foreign direct investments and investments by non-resident Indians will be available where the total sum does not exceed Rs 6 billion ($ 150 million)," the RBI said in a statement.

RBI officials said the simplification was in line with liberalised measures announced in February by New Delhi.

"Earlier, the RBI was granting clearance in two stages for potential investors, but now this will be done in just one stage," said the RBI spokeswoman.

Automatic approvals will be available for investments in export-oriented units, export processing zones and software technology parks.

However, automatic approvals are not allowed in banking, non-bank finance companies, civil aviation, petroleum, financial services, venture capital, print media and broadcasting.

Automatic approvals are allowed for up to 74 per cent foreign investments in pharmaceuticals, advertising, exploration and mining of diamonds and precious stones, up to 51 per cent in hotels and tourism and up to 49 per cent in telecom services.