India launches new forex correspondent framework, research chair scheme and tax incentives for foreign investors

The Reserve Bank of India announced a revamp of foreign exchange distribution, ending fresh licences for full‑featured money changers and introducing a forex correspondent model where authorised dealer banks appoint designated agents to handle currency notes, traveller’s cheques and remittances. The change will be phased in over two years.

The Ministry of Education opened applications for the Prime Minister Research Chair (PMRC) Scheme 2026, aiming to attract Indian‑origin researchers from top global institutions to work in leading Indian higher‑education and research centres.

In parallel, the finance ministry removed capital‑gains tax and withholding tax on government bonds for foreign institutional investors, seeking to boost foreign inflows amid rising oil prices.

Other notable developments included the launch of an updated Industrial Index with a 2022‑23 base year showing a 4.9% rise in industrial output for April, and the National Panchayat Awards recognising 42 rural bodies for governance excellence. The India Meteorological Department also issued a heat‑wave alert for northern states, while the CBSE re‑evaluation portal was investigated after a large‑scale cyber‑attack.

These measures reflect a broad push by Indian authorities to strengthen financial infrastructure, attract research talent and foreign capital, and address emerging climate and security challenges.