Long term export advances: banks may fund long term supply contracts subject to eligibility, compliance and reporting requirements. Authorised Dealer Category I banks may permit exporters with three years' satisfactory track record to receive long term export advances up to ten years for long term supply contracts, subject to conditions including firm irrevocable orders, demonstrable execution capacity, routing through one AD bank, adjustment through future exports, prohibition on using advances to repay NPA rupee loans, avoidance of double financing, AML/KYC and overseas buyer due diligence, and an interest cap at LIBOR plus 200 basis points; banks must report large advances and submit annual progress reports to the Reserve Bank.
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Provisions expressly mentioned in the judgment/order text.
Long term export advances: banks may fund long term supply contracts subject to eligibility, compliance and reporting requirements.
Authorised Dealer Category I banks may permit exporters with three years' satisfactory track record to receive long term export advances up to ten years for long term supply contracts, subject to conditions including firm irrevocable orders, demonstrable execution capacity, routing through one AD bank, adjustment through future exports, prohibition on using advances to repay NPA rupee loans, avoidance of double financing, AML/KYC and overseas buyer due diligence, and an interest cap at LIBOR plus 200 basis points; banks must report large advances and submit annual progress reports to the Reserve Bank.
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