RBI to frame standard procedure for FDI approvals

The Reserve Bank of India (RBI) is expected to formulate standard operating procedures (SOP) for approval of foreign direct investment (FDI) proposals by ministries. The proposal for setting up norms for FDI approvals in sensitive sectors, which are currently under government approval of the FDI policy, was discussed at a recent interministerial meeting. According to sources, several options came up for discussions at the meeting. In order to further improve ease of doing business, the government has decided to abolish the Foreign Investment Promotion Board (FIPB) and form a new mechanism for expeditious clearance of foreign investment proposals.