Reserve Bank of India vide its Master Circular No. RBI/2013-14/12 dated July 1, 2013 issued to All Authorised Dealer Category – I banks and Authorised banks stated that:
External Commercial Borrowings and Trade Credits availed of by residents are governed by clause (d) of sub-section 3 of section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 3/ 2000-RB viz. Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, dated May 3, 2000, as amended from time to time.
This Master Circular consolidates the existing instructions on the subject of “External Commercial Borrowings and Trade Credits” at one place. The list of underlying circulars / notifications, consolidated in this Master Circular, is furnished in the Appendix.
This circular will stand withdrawn on July 1, 2014 and be replaced by an updated Master Circular on the subject.
SOURCE: RESERVE BANK OF INDIA
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