Import Credits upto 5 Years for Infrastructure Sector will Continue Till June 30, 2013

[RBI Circular No. 98 dated 9^th April 2013]

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.28 dated September 11, 2012 and A.P. (DIR Series), Circular No. 58 dated December 14, 2012 relating to all-in-cost ceiling of Trade Credits for imports into India.

2. 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 June 30, 2013 and subject to review thereafter. All other aspects of Trade Credit policy remain unchanged.

3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

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.