Page 59 - Banking Finance July 2024

RBI CIRCULAR

RBI

CIRCULAR

International Trade Settlement in Indian Line of Credit of USD 23.37 mn to the

Rupees (INR) – Opening of additional Government of the Co-operative Repub-
Current Account for settlement of trade lic of Guyana (GO-GUY), for procurement

transactions of two Hindustan 228-201 aircraft from
June 11, 2024 Hindustan Aeronautics Ltd.

June 11, 2024
1. Attention of Authorised Dealer Category – I (AD Cat-
egory – I) banks is invited to FED Circular No. 08 dated 1. Export-Import Bank of India (Exim Bank) has entered
November 17, 2023, in terms of which, AD Category-I into an agreement dated March 15, 2024 with the
banks maintaining Special Rupee Vostro Account vide Government of the Co-operative Republic of Guyana
A.P. (DIR Series) Circular No.10 dated July 11, 2022 on (GO-GUY), for making available to the latter, Govern-
International Trade Settlement in Indian Rupees (INR) ment of India supported Line of Credit (LoC) of USD
were permitted to open an additional special current 23.37 mn (USD Twenty-Three Million Three Hundred
account for its constituents, exclusively for settlement Seventy Thousand Only) for procurement of two
of export transactions. Hindustan 228-201 aircraft from Hindustan Aeronau-
2. On a review, and to provide operational flexibility, the tics Ltd. The export of eligible goods and services from
India, as defined under the agreement, would be al-
facility of opening an additional special current account
lowed subject to their eligibility under the Foreign Trade
by the AD Category-I banks (maintaining Special Rupee
Vostro Account in terms of the RBI circular dated July Policy of the Government of India and whose purchase
may be agreed to be financed by the Exim Bank under
11, 2022 referred above) for its constituents may be
this agreement. Out of the total credit by Exim Bank
extended for settlement of their export as well as im-
port transactions. under the agreement, goods, works and services of the
value of at least 75 per cent of the contract price shall
3. The contents of this circular may be brought to the no-
be supplied by the seller from India, and the remaining
tice of your constituents.
25 per cent of goods and services may be procured by
the seller for the purpose of the eligible contract from
Export-Import Bank of India (Exim outside India.
Bank)’s Government of India-supported 2. The Agreement under the LoC is effective from April

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