Page 52 - Banking Finance October 2019

RBI CIRCULAR

RBI

CIRCULAR

Exim Bank's Government of India 20, 2019. Under the LOC, the terminal utilization
period is 60 months after the scheduled completion
supported Line of Credit of USD 800 date of the project.
million to the Government of the 3. Shipments under the LoC shall be declared in Export

Republic of Maldives Declaration Form as per instructions issued by the
Reserve Bank from time to time.
RBI/2019-20/55 4. No agency commission is payable for export under the
September 05, 2019
above LoC. However, if required, the exporter may use
his own resources or utilize balances in his Exchange
1. Export-Import Bank of India (Exim Bank) has entered
Earners’ Foreign Currency Account for payment of
into an agreement dated March 18, 2019 with the commission in free foreign exchange. Authorised Dealer
Government of the Republic of Maldives for making Category- I (AD Category- I) banks may allow such
available to the latter, a Government of India remittance after realization of full eligible value of
supported Line of Credit (LoC) of USD 800 million (USD export subject to compliance with the extant
Eight Hundred million only) for the purpose of financing instructions for payment of agency commission.
development projects in the Republic of Maldives.
5. AD Category – I banks may bring the contents of this
Under the arrangement, financing of export of eligible
circular to the notice of their exporter constituents and
goods, works and services from India, as defined under
advise them to obtain complete details of the LoC from
the agreement, would be allowed subject to their the Exim Bank’s office at Centre One, Floor 21, World
being eligible for export under the Foreign Trade Policy Trade Centre Complex, Cuffe Parade, Mumbai 400 005
of the Government of India and whose purchase may or from their website www.eximbankindia.in
be agreed to be financed by the Exim Bank under this
6. The directions contained in this circular have been
agreement. Out of the total credit by Exim Bank under
issued under section 10(4) and 11(1) of the Foreign
the agreement, goods, works and services of the value Exchange Management Act (FEMA), 1999 (42 of 1999)
of at least 75 per cent of the contract price shall be
and are without prejudice to permissions/ approvals, if
supplied by the seller from India and the remaining 25 any, required under any other law.
per cent of goods and services may be procured by the
Yours faithfully
seller for the purpose of the eligible contract from
(R K Moolchandani)
outside India.
Chief General Manager
2. The Agreement under the LoC is effective from August

52 | 2019 | OCTOBER | BANKING FINANCE