Ceiling Interest Rate on Import Credits to Continue Till Further Review

[RBI Circular No. 39 dated 9^th October 2012]

Sub: Trade Credits for Imports into India – Review of all-in-cost ceiling

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 100 dated March 30, 2012 and A.P. (DIR Series) Circular No. 28 dated September 11, 2012 relating to trade credits for imports into India.

2. 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 for trade credits for imports into India until further review.

3. All other aspects of Trade Credit policy remain unchanged and AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers.

4. 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.