Trade credit for imports: authorised external financing in specified currencies with Reserve Bank prescribed tenors and terms. Trade credits permit importers to raise external financing for capital and non capital imports in currencies specified by the Reserve Bank, subject to per ... Summary
Trade credit for imports: authorised external financing in specified currencies with Reserve Bank prescribed tenors and terms.
Trade credits permit importers to raise external financing for capital and non capital imports in currencies specified by the Reserve Bank, subject to per transaction ceilings and tenors linked to goods and operating cycles. Recognised lenders include overseas suppliers, banks, foreign equity holders and IFSC entities. Cost rules set benchmarks and spreads for foreign currency credits and market aligned all in costs for rupee credits. Security, guarantees and bank guarantees are permitted under Reserve Bank terms, and reporting requirements follow Reserve Bank directions.
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