 "RBI relaxes trade credit norms")
Relaxing norms to raise funds from abroad, the Reserve Bank today said now all types of companies can avail 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 $20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT)," RBI said in a notification.
Earlier, only companies in the infrastructure sector were allowed to raise such trade credits.
All other aspects of trade credit policy, RBI said, will remain unchanged and should be complied with.
The amended policy has come into force with immediate effect.
"On a review, it has been decided to allow companies in all sectors to avail of trade credit not exceeding $20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT)," RBI said in a notification.
Earlier, only companies in the infrastructure sector were allowed to raise such trade credits.
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RBI further said that the ab-initio contract period of 15 months for all trade credits has been relaxed to 6 months.
All other aspects of trade credit policy, RBI said, will remain unchanged and should be complied with.
The amended policy has come into force with immediate effect.