Page 53 - Banking Finance February 2022

RBI CIRCULAR

RBI

CIRCULAR

Exim Bank Government of India 4. No agency commission is payable for export under the
above LoC. However, if required, the exporter may use
supported Line of Credit (LoC) of USD 40 his own resources or utilize balances in his Exchange
million to the Government of the Earners’ Foreign Currency Account for payment of
Togolese Republic commission in free foreign exchange. Authorised Dealer
(AD) Category- I banks may allow such remittance after
RBI/2021-2022/141 realization of full eligible value of export subject to
compliance with the extant instructions for payment
December 23, 2021
of agency commission.
1. Export-Import Bank of India (Exim Bank) has entered into 5. AD Category – I banks may bring the contents of this
an agreement dated June 23, 2021 with the Government circular to the notice of their exporter constituents and
of the Togolese Republic, for making available to the advise them to obtain complete details of the LoC from
latter, Government of India supported Line of Credit (LoC) the Exim Bank’s office at Centre One, Floor 21, World
of USD 40 million (USD Forty million only) for the purpose Trade Centre Complex, Cuffe Parade, Mumbai 400 005
of financing the project for electrification of 350 villages or from their website www.eximbankindia.in
through Solar Photo Voltaic Systems in the Togolese 6. The directions contained in this circular have been
Republic. Under the arrangement, financing of export issued under section 10(4) and 11(1) of the Foreign
of eligible goods and services from India, as defined under Exchange Management Act (FEMA), 1999 (42 of 1999)
the agreement, would be allowed subject to their being and are without prejudice to permissions/ approvals, if
eligible for export under the Foreign Trade Policy of the any, required under any other law.
Government of India and whose purchase may be
agreed to be financed by the Exim Bank under this (R. S. Amar)
agreement. Out of the total credit by Exim Bank under Chief General Manager
the agreement, goods, works and services of the value
of at least 75 per cent of the contract price shall be Restriction on storage of actual card data
supplied by the seller from India, and the remaining 25
per cent of goods and services may be procured by the [i.e. Card-on-File (CoF)]
seller for the purpose of the eligible contract from RBI/2021-2022/142
outside India.
December 23, 2021
2. The Agreement under the LoC is effective from
December 07, 2021. Under the LoC, the terminal 1. In terms of our circular DPSS.CO.PD.No.1810/02.14.008/
utilization period is 60 months after the scheduled 2019-20 dated March 17, 2020 on “Guidelines on
completion date of the Project. Regulation of Payment Aggregators and Payment
Gateways”, the authorised non-bank payment
3. Shipments under the LoC shall be declared in Export aggregators and merchants on-boarded by them were
Declaration Form as per instructions issued by the
Reserve Bank from time to time. prohibited from storing card data (CoF) from June 30,

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