Mumbai, Sept 25 (KNN) The Reserve Bank of India (RBI) has relaxed the norms to raise funds from abroad and said that all types of companies can now avail of 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 the Director General of Foreign Trade (DGFT),” the RBI said in a notification yesterday.
It has also been decided to relax the ab-initio contract period of 15 (fifteen) months for all trade credits to 6 (six) months, the notification added.
RBI also said that all other aspects of Trade Credit policy will remain unchanged and should be complied with.
The amended Trade Credit policy will come into force with immediate effect and is subject to review based on the experience gained in this regard.