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of <h1>Regulation of trade credits as capital account transactions: RBI limits, maturities, pricing, security and reporting rules</h1> Trade credits are classified as capital account transactions and are regulated by RBI; this clarifies that trade credit for imports may be FCY- or INR-denominated and prescribes forms (buyers' and suppliers' credit), eligible borrowers (resident importers) and recognised lenders, with automatic-route limits (up to USD 150m per transaction for oil/gas refining, airlines and shipping; USD 50m for others), effecting ceilinged access under specified thresholds. Maturities are prescribed (capital goods up to three years; non-capital goods up to one year or operating cycle; shipbuilders up to three years), producing time limits for funding. All-in-cost caps, currency-change and hedging rules are prescribed, affecting pricing and conversion. Security, guarantee and reporting obligations on Authorised Dealers are mandated, imposing documentation, charge creation and monthly reporting requirements.
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