Importers can avail of trade credit at an all-in-cost ceiling of 350 basis points over LIBOR till September 30.
The Reserve Bank of India (RBI) clarified to banks that the period of availing trade credit for imports should be linked to the operating cycle and trade transaction period.
It has also been decided that for availment of trade credit, the period of trade credit should be linked to the operating cycle and trade transaction. Banks may ensure that these instructions are strictly complied with, the RBI said in a notification on Thursday.
Importers can avail of trade credit at an all-in-cost ceiling of 350 basis points over the London interbank offer rate (LIBOR) till September 30, the RBI added.
A basis point is one-hundredth of a percentage point.
All other aspects of Trade Credit policy remain unchanged, it further said.
In separate notification, the RBI extended the rule of refinancing existing overseas borrowings by raising fresh external commercial borrowings till September 30.
The Reserve Bank of India (RBI) clarified to banks that the period of availing trade credit for imports should be linked to the operating cycle and trade transaction period.
It has also been decided that for availment of trade credit, the period of trade credit should be linked to the operating cycle and trade transaction. Banks may ensure that these instructions are strictly complied with, the RBI said in a notification on Thursday.
Importers can avail of trade credit at an all-in-cost ceiling of 350 basis points over the London interbank offer rate (LIBOR) till September 30, the RBI added.
A basis point is one-hundredth of a percentage point.
All other aspects of Trade Credit policy remain unchanged, it further said.
In separate notification, the RBI extended the rule of refinancing existing overseas borrowings by raising fresh external commercial borrowings till September 30.
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