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<h1>RBI Consolidates Guidelines for External Commercial Borrowings and Trade Credits under FEMA 1999, Effective Until July 1, 2008.</h1> The Master Circular on External Commercial Borrowings and Trade Credits, issued by the Reserve Bank of India, consolidates existing guidelines under the Foreign Exchange Management Act, 1999. It is directed at banks authorized to deal in foreign exchange and outlines the regulations for residents availing external commercial borrowings and trade credits. This circular, effective from July 2, 2007, includes a sunset clause, indicating it will be withdrawn and updated by July 1, 2008. The circular compiles various instructions and notifications, which are listed in the appendix.