Change in Trade Credits for Import into India

As per the extant guidelines of Reserve Bank of India, for import of capital goods as classified by DGFT, Authorised Dealer (AD) banks may approve trade credits up to USD 20 million per import transaction with a maturity period of more than one year and less than three years (from the date of shipment).

No roll-over/extension is permitted beyond the permissible period. Nevertheless, it has been decided by Reserve Bank of India (RBI) to allow companies in the infrastructure sector to avail of trade credit up to a maximum period of five years for import of capital goods as classified by DGFT subject to certain conditions.

The circular is attached for your reference Circular on Trade Credits for Import into India

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