Page 54 - Banking Finance December 2021

RBI CIRCULAR

5. AD Category-I banks may bring the contents of the Declaration Form as per instructions issued by the
circular to the notice of their customers/constituents Reserve Bank from time to time.
concerned. 4. No agency commission is payable for export under the
6. The Directions contained in this circular have been issued above LoC. However, if required, the exporter may use
under Sections 10(4) and 11(1) of the Foreign Exchange his own resources or utilize balances in his Exchange
Management Act, 1999 (42 of 1999) and are without Earners’ Foreign Currency Account for payment of
prejudice to permissions/approvals, if any, required under commission in free foreign exchange. Authorised Dealer
any other law. (AD) Category- I banks may allow such remittance after
realization of full eligible value of export subject to
(Dimple Bhandia) compliance with the extant instructions for payment
Chief General Manager of agency commission.

5. AD Category – I banks may bring the contents of this
Exim Bank's Government of India circular to the notice of their exporter constituents and
supported Line of Credit (LoC) of USD advise them to obtain complete details of the LoC from
the Exim Bank’s office at Centre One, Floor 21, World
10.40 million to the Government of the Trade Centre Complex, Cuffe Parade, Mumbai 400 005

Kingdom of Eswatini (Swaziland) or from their website www.eximbankindia.in
6. The directions contained in this circular have been
RBI/2021-2022/122
issued under section 10(4) and 11(1) of the Foreign
November 11, 2021 Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions/ approvals, if
1. Export-Import Bank of India (Exim Bank) has entered any, required under any other law.
into an agreement dated February 01, 2021 with the
Government of the Kingdom of Eswatini (Swaziland), (R. S. Amar)
for making available to the latter, Government of India Chief General Manager
supported Line of Credit (LoC) of USD 10.40 million (USD
Ten million and four hundred thousand only) for the
purpose of financing construction of a Disaster Auction of Government Securities: Non-
Recovery Site, subject to preparation and appraisal of Competitive Bidding Facility to retail
Detailed Project Report (DPR) at a cost not exceeding
1% of the credit, in the Kingdom of Eswatini (Swaziland). investors
Under the arrangement, financing of export of eligible RBI/2021-2022/124
goods and services from India, as defined under the November 12, 2021
agreement, would be allowed subject to their being
eligible for export under the Foreign Trade Policy of the 1. As part of continuing efforts to increase retail
Government of India and whose purchase may be participation in government securities, the ‘RBI Retail
agreed to be financed by the Exim Bank under this Direct’ Scheme to facilitate investment in Government
agreement. Out of the total credit by Exim Bank under Securities by individual investors was introduced today.
the agreement, goods, works and services of the value Under the scheme, Clearing Corporation of India
of at least 75 per cent of the contract price shall be Limited (CCIL) has been permitted to aggregate the
supplied by the seller from India, and the remaining 25 bids received from ‘Retail investor’ in non-competitive
per cent of goods and services may be procured by the segment of primary auctions of Government Securities
seller for the purpose of the eligible contract from and Treasury Bills.
outside India.
2. Accordingly, the updated Scheme for Non-Competitive
2. The Agreement under the LoC is effective from Bidding Facility in the auctions of Government
September 27, 2021. Under the LoC, the terminal Securities and Treasury Bills is given in Annex.
utilization period is 60 months after the scheduled
completion date of the Project. (Rajendra Kumar)
3. Shipments under the LoC shall be declared in Export Chief General Manager

54 | 2021 | DECEMBER | BANKING FINANCE