Page 54 - Banking Finance June 2021

RBI CIRCULAR

and December 31, 2014 respectively, for making agreed to be financed by the Exim Bank under this
specific provisions for non-performing assets, as per agreement. Out of the total credit by Exim Bank under
their Board approved policy. the agreement, goods, works and services of the value
of at least 75 per cent of the contract price shall be
3. In order to mitigate the adverse impact of COVID 19
related stress on banks, as a measure to enable capital supplied by the seller from India, and the remaining 25
conservation, it has been decided to allow banks to per cent of goods and services may be procured by the
seller for the purpose of the eligible contract from
utilise 100 per cent of floating provisions/
countercyclical provisioning buffer held by them as on outside India.
December 31, 2020 for making specific provisions for 2. The Agreement under the LoC is effective from April
non-performing assets with prior approval of their 16, 2021. Under the LoC, the terminal utilization period
Boards. Such utilisation is permitted with immediate is 60 months after the scheduled completion date of
effect and upto March 31, 2022. the project.
3. Shipments under the LoC shall be declared in Export
(Manoranjan Mishra)
Declaration Form as per instructions issued by the
Chief General Manager
Reserve Bank from time to time.
4. No agency commission is payable for export under the
Exim Bank's Government of India above LoC. However, if required, the exporter may use
supported Line of Credit (LoC) of USD his own resources or utilize balances in his Exchange
Earners’ Foreign Currency Account for payment of
7.35 million to the Government of the commission in free foreign exchange. Authorised Dealer
Republic of Nicaragua Category- I (AD Category- I) banks may allow such
remittance after realization of full eligible value of
RBI/2021-2022/34 export subject to compliance with the extant
May 06, 2021 instructions for payment of agency commission.
5. AD Category – I banks may bring the contents of this
1. Export-Import Bank of India (Exim Bank) has entered
circular to the notice of their exporter constituents and
into an agreement dated February 18, 2021 with the
advise them to obtain complete details of the LoC from
Government of the Republic of Nicaragua, for making
available to the latter, Government of India supported the Exim Bank’s office at Centre One, Floor 21, World
Trade Centre Complex, Cuffe Parade, Mumbai 400 005
Line of Credit (LoC) of USD 7.35 million (USD Seven
or from their website www.eximbankindia.in.
million and three hundred fifty thousand only) for the
purpose of replacement and equipment of the High 6. The directions contained in this circular have been
Technology Centre of Hospital Antonio Lenin Fonseca issued under section 10(4) and 11(1) of the Foreign
at Managua in the Republic of Nicaragua. Under the Exchange Management Act (FEMA), 1999 (42 of 1999)
arrangement, financing of export of eligible goods and and are without prejudice to permissions/ approvals, if
services from India, as defined under the agreement, any, required under any other law.
would be allowed subject to their being eligible for
export under the Foreign Trade Policy of the (R. S. Amar)
Government of India and whose purchase may be Chief General Manager

54 | 2021 | JUNE | BANKING FINANCE