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EEFC account trade loans liberalised; larger foreign-bank-guaranteed advances allowed with existing reporting obligations. Exporters may grant trade-related loans/advances from their EEFC Account to overseas importers without any overall ceiling, subject to FEMA regulation compliance; a guarantee of a bank of international repute situated outside India is required where the amount of the trade-related loan/advance by exporter out of his EEFC Account exceeds a higher prescribed threshold. Reporting continues as per A.P. (DIR Series) Circular No.78 and the change follows amendment to the FEMA (Borrowing or Lending in Foreign Exchange) Regulations, 2000.
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Exporters may grant trade-related loans/advances from their EEFC Account to overseas importers without any overall ceiling, subject to FEMA regulation compliance; a guarantee of a bank of international repute situated outside India is required where the amount of the trade-related loan/advance by exporter out of his EEFC Account exceeds a higher prescribed threshold. Reporting continues as per A.P. (DIR Series) Circular No.78 and the change follows amendment to the FEMA (Borrowing or Lending in Foreign Exchange) Regulations, 2000.
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