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<h1>RBI Consolidates External Commercial Borrowings & Trade Credits Guidelines Under FEMA; New Circular Effective July 2009.</h1> The Master Circular on External Commercial Borrowings and Trade Credits, issued by the Reserve Bank of India on July 1, 2008, consolidates all existing instructions related to these financial instruments under the Foreign Exchange Management Act, 1999. It applies to all banks authorized to deal in foreign exchange. The circular includes a sunset clause, indicating it will be withdrawn and replaced by an updated version on July 1, 2009. The circular aims to streamline and clarify the regulatory framework for external commercial borrowings and trade credits for residents.