Reserve Bank of India relaxes trade credit norms.

MUMBAI: Relaxing norms to raise funds from abroad, the Reserve Bank today said now all types of companies can avail trade credit facility from overseas for import of capital goods.

"On a review, it has been decided to allow companies in all sectors to avail of trade credit not exceeding USD 20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT)," RBI said in a notification.

Earlier, only companies in the infrastructure sector were allowed to raise such trade credits.

RBI further said that the ab-initio contract period of 15 months for all trade credits has been relaxed to 6 months.

All other aspects of trade credit policy, RBI said, will remain unchanged and should be complied with.

The amended policy has come into force with immediate effect.

Source : economictimes.indiatimes.com