Date: |
16-11-2017
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Notification No: |
A.P. (DIR Series) Circular No. 13
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Issuing Authority: |
RBI
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Type: |
A.P.D.(Series) Circulars
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File No: |
RBI/2017-18/93 A.P. (DIR Series) Circular No. 13 |
Subject: |
Exim Bank's Government of India supported Line of Credit of USD 81 million to the Government of the Republic of Rwanda
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RBI/2017-18/93 A.P. (DIR Series) Circular No. 13
November 16th, 2017
To All Category - I Authorised Dealer Banks Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 81 million to
the Government of the Republic of Rwanda
Export-Import Bank of India (Exim Bank) has entered into an Agreement on May
24, 2017 with the Government of the Republic of Rwanda for making available to
the latter, a Government of India supported Line of Credit (LoC) of USD 81
million (USD Eighty one million only) for the purpose of financing establishment
of ten Vocational Training Centers and four Business Incubation Centers in the
Republic of Rwanda. Under the arrangement financing export of eligible goods and
services from India would be allowed which are eligible for export under the
Foreign Trade Policy of the Government of India and whose purchase may be agreed
to be financed by the Exim Bank under this agreement. The goods include plant,
machinery and equipment and services include consultancy services. Out of the
total credit by Exim Bank under this agreement, goods and services of the value
of at least 75 per cent of the contract price shall be supplied by the seller
from India and the remaining 25 per cent of goods and services may be procured
by the seller for the purpose of the eligible contract from outside India.
2. The Agreement under the LoC is effective from November 01, 2017. Under
the LoC, the terminal utilization period is 60 months after the scheduled
completion date of the project.
3. Shipments under the LoC will have to
be declared on Export Declaration Form as per instructions issued by the Reserve
Bank from time to time.
4. No agency commission is payable for export
under the above LoC. However, if required, the exporter may use its own
resources or utilize balances in its Exchange Earners’ Foreign Currency Account
for payment of commission in free foreign exchange. Authorised Dealer Category-
I (AD Category- I) banks may allow such remittance after realization of full
eligible value of export subject to compliance with the extant instructions for
payment of agency commission.
5. AD Category- I banks may bring the
contents of this circular to the notice of their exporter constituents and
advise them to obtain full details of the LoC from the Exim Bank’s office at
Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005
or from their website www.eximbankindia.in
6. The directions contained in
this circular have been issued under section 10(4) and 11(1) of the Foreign
Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to
permissions / approvals, if any, required under any other law.
Yours faithfully, (J K Pandey) Chief General Manager
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