Borrowing in foreign exchange: rules govern authorised dealers, ECBs, trade credit and resident loan eligibility.

Borrowing in foreign exchange by residents distinguishes authorised dealers who may borrow abroad within Reserve Bank limits and directions, including to provide pre and post shipment export credit and to raise ECBs under Schedule I. Other eligible residents may raise ECBs under Schedule I; importers may obtain trade credit under Schedule II and the Foreign Trade Policy; banks abroad may lend for deferred export or turnkey projects where approvals conform to export regulations; statutory financial institutions require prior government approval for onward lending; individuals may borrow from relatives or for education abroad subject to Reserve Bank conditions.

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