The RBI has restored the ODI/FC limit to 400%, which has taken automatic effect by a circular dated 3 July 2014. However, in a change from the pre-August 2013 regime, any ODI/FC exceeding USD $1 billion in a financial year (even if within the ODI/FC limit of 400%) will require prior approval from the RBI. All other aspects of the previous regime will remain the same. This increase in the ODI/FC limit will significantly help Indian corporates to make future outbound investments and to support existing offshore investments.