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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.
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.
