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<h1>Revised Trade Credit Policy under FEMA 1999: New Guidelines for Borrowers, Lenders, and Compliance via AD Category I Banks.</h1> The circular outlines a revised framework for Trade Credit Policy under the Foreign Exchange Management Act, 1999. It allows Trade Credits (TC) to be raised under an automatic route up to specified limits, with compliance monitored by Authorised Dealer Category I banks. The framework includes guidelines on eligible borrowers, recognized lenders, and terms such as the period and cost of TC. It also covers provisions for security, reporting requirements, and the roles of Authorised Dealers. The policy applies to transactions in Special Economic Zones and Free Trade Warehousing Zones, aligning with the Foreign Trade Policy of India.