| Date: |
12-10-2017
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| Notification No: |
A.P. (DIR Series) Circular No. 10
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2017-18/78 A.P. (DIR Series) Circular No. 10 |
| Subject: |
Exim Bank's Government of India supported Line of Credit of USD 1 billion to the Government of Mongolia
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RBI/2017-18/78
A.P. (DIR Series) Circular No. 10
October 12th, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 1 billion to
the Government of Mongolia
Export-Import Bank of India (Exim Bank) has entered into an Agreement on
April 28, 2016 with the Government of Mongolia for making available to the
latter, a Government of India supported Line of Credit (LoC) of USD 1 billion
(USD One billion only) for the purpose of development of railways and related
infrastructure projects in Mongolia as may be agreed between the borrower and
Government of India. The credit is available for financing export of eligible
goods and services from India for the purpose of financing development of
railways and related infrastructure projects in terms of the Agreement and those
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 August 25, 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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