Mumbai, Jul 4 (KNN) Relaxing the norms for overseas investment by Indian corporates, the Reserve Bank of India (RBI) has restored the limit on their overseas direct investments (ODIs) under the automatic route to 400 per cent of net worth.

The limit was cut by three-fourths to 100 per cent in August last year after the rupee touched an all-time low of 68.80 a dollar.

“On a review, it has been decided to restore the limit of ODI/ Financial Commitment (FC) to be undertaken by an Indian Party under the automatic route to the limit prevailing, as per the extant FEMA provisions, prior to August 14, 2013,” RBI has said in a notification.

It has, however, been decided that any financial commitment exceeding USD 1 (one) billion (or its equivalent) in a financial year would require prior approval of the Reserve Bank even when the total FC of the Indian Party is within the eligible limit under the automatic route (i.e., within 400 per cent of the net worth as per the last audited balance sheet), it added. (KNN/SD)