RBI updates Master Direction on External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers as on 2018-03-19

Mar 19, 2018 | by Avantis RegTech Legal Research Team

The Reserve Bank of India (RBI) has updated the Master Direction - External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers vide notification dated March 16, 2018. Vide this update Guarantee for Trade Credit: for AD Category I banks shall be as under-

·       Bank guarantees/ in favour of overseas supplier, bank or financial institution up to USD 20 million per import transaction for a maximum period up to 1 year in case of import of non-capital goods (except gold, palladium, platinum, rhodium, silver, etc.)

·       For import of capital goods, the period of such guarantees 54 can be for a maximum period up to 3 years

[RBI/FED/2015-16/15 FED Master Direction No.5/2015-16]

URL: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/15MDC8CEB9A7BDE64745B9BE1DCEC3293CA1.PDF


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