Trade Credits for Imports into India – Review and Simplification

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... STC exceeding USD 20 million per import transaction requires prior approval of the Reserve Bank. 2. The present instructions have been reviewed in the light of experience gained and recent developments. Consequently, it is clarified that the extant guidelines covering such credits for imports of all items up to USD 20 million per import transaction with a maturity period up to one year remain unchanged. Credits up to USD 20 million per import transaction with a maturity period exceeding one year but less than three years would now be permitted only for import of capital goods. The reporting arrangements for such credits have been further simplified. The revised guidelines are set out below. 3. It is clarified that credit extended fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r applicable benchmark. The all-in-cost ceilings include arranger fee, upfront fee, management fee, handling / processing charges, out of pocket and legal expenses, if any. The all-in-cost ceilings will be reviewed from time to time. 7. As hitherto, ADs shall not issue guarantee, letter of undertaking or letter of comfort in favour of overseas lender on behalf of their importer constituent for trade credit without prior approval of the Reserve Bank. 8. As regards reporting arrangements, ADs are required to furnish details of approvals, drawal, utilisation, and repayment of trade credit granted by all its branches, in a consolidated statement, during the month, in form TC (format in Annex) from April 2004 onwards to the Director, Di....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bsp;                 Fax :     Sr. No Date of Approval Loan Identification No. Category of Borrower Name of Lender* Country of Lender* Currency Amount Equiv. Amt. in USD Rate of Interest Other chages in USD 1 2 3 4 5 6 7 8 9 10 11                                                                         &....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....                                                                                                       I. Supplier's Credit (SC) II. Buyer's Credit (BC) III. Short-term Trade Credit (STC) (maturity period up to one year) IV. Long-term Trade Credit (LTC) (maturity period more than one year & less than three years) V. Tota....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) Out-standing (4-6) Shipment Final Repayment 1 2 3 4 5 6 7 8 9 10 11 12                                                                                                                         Note 1: Information in column....