RBI bans investments in non-cooperative nations

IMumbai The Reserve Bank of India (RBI) on Wednesday prohibited Indian entities from making direct investments in any entity located in 'non co-operative countries and territories', as identified by the inter-governmental body Financial Action Task Force. FATF comprises two regional organisations and 35 member jurisdictions, including India, the US, the UK, China and the European Commission. The prohibition on investment is "in order to align" instructions under Foreign Exchange Management Act with the objectives of the FATF.