Reserve bank of India
A.P. (DIR Series) Circular No. 09
July 11, 2013
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Trade Credits for Imports into India – Review of all-in-cost ceiling
Attention of Category-I Authorized Dealer banks is invited to the
A.P. (DIR
Series) Circular No. 98 dated April 09, 2013 relating to all-in-cost ceiling of
Trade Credits for imports into India.
- On a review it has been decided that the all-in-cost ceiling as specified
under paragraph 4 of
A.P. (DIR Series) Circular No.28 dated September 11, 2012
will continue to be applicable till September 30, 2013 and is subject to review
thereafter.
- It has also been decided that for availment of trade credit, the period of
trade credit should be linked to the operating cycle and trade transaction. AD
banks may ensure that these instructions are strictly complied with.
- All other aspects of Trade Credit policy remain unchanged. Category-I AD
banks may bring the contents of this circular to the notice of their
constituents and customers.
- The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully
(Rudra Narayan Kar)
Chief General Manager-in-Charge
RBI/2013-14/132