Trade credit authorisation: ADs may approve trade credits subject to maturity limits, infrastructure exceptions and RBI approval. Trade credit covers foreign currency credit/loans for imports, including suppliers' and buyers' credit. Authorised Dealers may approve trade credits up to a per-import transaction threshold for permitted imports (excluding gold) with specified maturity limits: generally up to one year from shipment for imports, while capital goods receive extended maturities depending on whether the importer is an infrastructure company or another resident entity. ADs may not roll over or extend maturities beyond the permissible period, and trade credit above the AD threshold requires prior Reserve Bank approval.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Trade credit authorisation: ADs may approve trade credits subject to maturity limits, infrastructure exceptions and RBI approval.
Trade credit covers foreign currency credit/loans for imports, including suppliers' and buyers' credit. Authorised Dealers may approve trade credits up to a per-import transaction threshold for permitted imports (excluding gold) with specified maturity limits: generally up to one year from shipment for imports, while capital goods receive extended maturities depending on whether the importer is an infrastructure company or another resident entity. ADs may not roll over or extend maturities beyond the permissible period, and trade credit above the AD threshold requires prior Reserve Bank approval.
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