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Introduction
Reserve Bank of India (Reserve Bank) is statutorily mandated to operate the credit
system of the country to its advantage. In pursuit of this mandate, the Reserve Bank
encourages innovation in the financial systems, credit products and delivery
mechanisms while ensuring orderly growth, financial stabil... |
C. Definitions
4.
(1) For the purpose of these Directions, following definitions shall apply:
1[(ia) ‘Acquisition Finance’ shall mean a financial facility or assistance provided
to an eligible borrower entity for the purpose of acquiring control in a target
company (including through a scheme of amalgamation or m... |
resources either through issuance of equity, debt or hybrid instruments or
by divestiture/hive-off of a part of existing business/assets within the
interim period.]
(v) ‘Bullet Repayment Loans’ means loans where both principal and interest
are due for payment at the maturity of the loan.
4[(va) ‘Capital Market Int... |
(b) Any lender(s) determines a need for extension of the original / extended
DCCO, as the case may be, of the project.
(c) Expiry of original / extended DCCO, as the case may be.
(d) Any lender(s) determines a need for infusion of additional debt.
(e) The project is faced with financial difficulty as determined und... |
(xiv) ‘Default’ means the non-payment of debt (as defined in Insolvency and
Bankruptcy Code (IBC), 2016) when whole or any part or instalment of the
debt has become due and payable and is not paid by the debtor.
7[(xiva) ‘Eligible Securities’ shall include the following securities:
(a) Listed Group-1 equity shares ... |
accepted by them as Short Term Bank Deposit under the GMS, or (ii) gold
borrowed from other designated banks under GMS, and where the
repayment can be either in gold or in cash or in a combination of both.
(b) ’Import-linked GML’ means GML extended by nominated banks
authorized to import gold, where the source of g... |
9[(xxiia) ‘Loan to Value (LTV)’ shall mean the ratio of the outstanding loan amount
to the value of the securities as on any given day.
(xxiib) ‘Margin’ shall mean the contribution of the borrower, either in the form of
cash or other liquid assets, for the purpose of purchasing or borrowing a
security with bank fin... |
(xxvi) ‘Ornaments’ means items meant for use as adornment of any object,
decorative items, or utensils, excluding those items that fall under the
definition of jewellery as defined previously.
(xxvii) ‘Overdue bill’ in the case of a demand bill means a bill which is not paid
before the expiry of the normal transit ... |
extending far into the future. Projects usually have the characteristics of a
long gestation period, irreversibility and substantial capital outlays.
(xxxii) ‘Project Finance’ in the context of Chapter VII of these Directions refers
to the method of funding a project in which the revenues to be generated
by the fun... |
Reserve Bank of India Act, 1934, or any statutory modification or re-enactment
thereto or in other relevant directions issued by the Reserve Bank or as used
in commercial parlance, as the case may be. |
Chapter II - Role of The Board
5. A bank shall put in place a Board-approved credit policy covering, inter alia, the
areas specified below, to the extent such activities are undertaken by it. The
specific aspects to be addressed in such a policy are detailed in the relevant
paragraphs of these Directions.
(1) Digi... |
15[
Chapter IIA: Credit Facilities Linked to Specific Payment Instruments
5A. Notwithstanding the mode / channel of credit delivery or the type of payment
instrument and / or underlying technology used for its disbursement, the
prudential treatment of an underlying credit facility, including pre-sanctioned
credit ... |
Chapter III - Digital Lending Guidelines
A. General Requirements for bank-LSP Arrangements
6. Due diligence requirements with respect to LSPs
(1) Digital lending by a bank involving a LSP, shall be carried out under a
contractual agreement between the bank and the LSP, which clearly defines
the respective roles, r... |
(1) An LSP shall provide a digital view of all the loan offers matching the borrower’s
request on the DLA which meets the requirement of the borrower. The name
of the unmatched lenders shall also be disclosed in the digital view.
(2) While the LSP may adopt any mechanism to match the request of borrowers
with the l... |
9. Disclosures to borrowers
(1) A bank shall provide a Key Fact Statement (KFS), as per instructions contained
in Reserve Bank of India (Commercial Banks - Responsible Business
Conduct), Directions, 2025.
(2) As regards penal charges, a bank shall be guided by Reserve Bank of India
(Commercial Banks - Responsible ... |
communicated to the borrower through email / SMS before the recovery agent
contacts the borrower for recovery.
10. Loan disbursal, servicing, and repayment
(1) Disbursement of loan by a bank shall always be made into the bank account of
the borrower except for disbursals covered exclusively under statutory or
re... |
(5) In case of delinquent loans, a bank may deploy physical interface to recover
loans in cash, wherever necessary. In order to afford operational flexibility to
the bank, such transactions are exempted from the requirement of direct
repayment of loan in the bank’s account. However, any recovery by cash shall
be du... |
days of receipt of complaint by the bank, the said borrower can lodge a
complaint
over
the
Complaint
Management
System
(CMS
-
https://cms.rbi.org.in/) portal under the Reserve Bank-Integrated Ombudsman
Scheme
(RB-IOS
-
Issued
vide
Notification
CEPD.
PRD.
No.S873/13.01.001/2021-22 dated November 12, 20... |
Responsibility regarding data privacy and security of the customer’s personal
information on an ongoing basis shall be that of the bank.
(2) A bank shall ensure that clear policy guidelines regarding the storage of
customer data including the type of data that can be stored, the length of time
for which data can be... |
lending done through their DLAs and / or DLAs of LSPs is reported by them to
CICs irrespective of its nature / tenor.
(2) Extension of structured digital lending products by a bank and / or LSPs
engaged by the bank over a merchant platform involving short term, unsecured
/ secured credits or deferred payments, nee... |
(iii) Data collection and storage by DLAs is in compliance with paragraphs 13
and 14 of these Directions and other statutory and regulatory requirements,
as applicable from time to time.
(iv) The DLA’s particulars submitted by the bank are also suitably disclosed on
the bank’s website as required under paragraph 9(... |
(3) Every time a bank enters into or renews a DLG arrangement, it shall obtain
adequate information to satisfy itself that the entity extending DLG would be
able to honour it. Such information shall, at a minimum, include a declaration
from the DLG provider, certified by the statutory auditor of the DLG provider,
o... |
(2) Fixed Deposit maintained with a Scheduled Commercial Bank with a lien
marked in favour of the bank.
(3) Bank Guarantee in favour of the bank.
24. Cap on DLG
(1) A bank shall ensure that the total amount of DLG cover on any outstanding
portfolio which is specified upfront shall not exceed five per cent of the t... |
Case 1: As on June 30, 2024, loans worth ₹5 crore mature without any default.
In this case, the outstanding portfolio in the books of the bank would be ₹15
crore and the DLG cover shall remain at ₹1 crore.
Case 2: Subsequently, there is a default of ₹2 crore during Q2-2024 and
consequently the bank invokes the enti... |
(2) The amount of DLG invoked shall not be set off against the underlying
individual loans, i.e. the liability of the borrowers in respect of the underlying
loan shall remain unaffected.
(3) Recovery by a bank, if any, from the loans on which DLG has been invoked
and realised, can be shared with the DLG provider in... |
Chapter IV - Lending against Gold and Silver Collateral
Background: Reserve Bank has restricted lending against primary gold such as gold
bullion due to broader macro-prudential concerns as also due to speculative and non-
productive nature of gold. However, banks have been permitted to lend against the
collateral ... |
35. A bank may renew an existing loan or sanction a top-up loan upon a formal request
from the borrower, subject to a credit assessment in accordance with paragraph
34. Such renewal or top-up shall be permitted only within the permissible LTV, and
provided the loan is classified as standard. Further, renewal of bull... |
For removal of doubt, it is clarified that the above provision does not preclude a
lender from financing another lender against the security of underlying
receivables.
39. Tenor of consumption loans in the nature of bullet repayment loans shall be
capped at 12 months, which may be renewed in terms of paragraph 35. ... |
Total consumption loan
amount per borrower
Maximum LTV ratio
≤ ₹2.5 lakh
85 per cent
> ₹2.5 lakh & ≤ ₹5 lakh
80 per cent
> ₹5 lakh
75 per cent
Explanation: ‘Loan to Value (LTV) ratio’ on a day in this context means the ratio of
the outstanding loan amount to the value of the pledged collateral or security, as... |
(2) Loan servicing, repayment, etc. is executed by the borrower directly in the
bank’s account without any pass-through account or pool account of any third
party.
49. Running multiple loans simultaneously to a single borrower or a group of related
borrowers may be prone to misuse and susceptible to fraud. Conseque... |
18[
Chapter VA - Gold Metal Loans (GML)
A. Introduction
60A. The Gold Metal Loan (GML) scheme was launched in 1998 as per Export Import
Policy 1997-2002 and the Handbook of Procedures of the Exim Policy to address
the need of working capital finance of the jewellery industry. Over time, the scope
of the GML sche... |
lay down the detailed due-diligence requirements for deciding the eligibility of GML
borrowers and their credit requirements.
60E. GML shall be subject to capital adequacy and other prudential requirements
applicable to a lender, similar to any other loan exposure. For all prudential and
accounting purposes, GML sh... |
60K. For all GML other than lending to jewellery exporters, a bank may fix a repayment
tenor as per its policy, in alignment with working capital cycle of the jeweller,
subject to a ceiling of 270 days.
60L. Repayment of GML (both principal and interest amounts) shall be made in INR,
calculated on the basis of prev... |
Chapter VI - Microfinance
A. Definition of Microfinance
61. A microfinance loan is defined as a collateral-free loan given to a household having
annual household income up to ₹3,00,000. For this purpose, the household shall
mean an individual family unit, i.e., husband, wife and their unmarried children.
62. Al... |
ii. Nature of work (Self-employed or salaried, regular or seasonal,
etc.)
iii. Frequency of income (daily / weekly / monthly)
iv. Months / days of employment over last one year
v. Self-reported monthly income
vi. Average monthly income (to be derived from (iv) & (v) above)
(b) Other sources of income
i.
R... |
64. Self-regulatory organisations (SROs) and other associations / agencies may also
develop a common framework based on the indicative methodology. The banks
may adopt / modify this framework suitably as per their requirements with approval
of their boards.
65. Each bank shall mandatorily submit information regard... |
the bank shall also ascertain the same from other sources such as declaration
from the borrowers, their bank account statements and local enquiries.
D. Other provisions
70. The bank shall have a board-approved policy to provide the flexibility of repayment
periodicity on microfinance loans as per borrowers’ requir... |
Chapter VII - Project Finance
The directions contained in this Chapter provide a harmonised framework for financing
of projects in infrastructure and non-infrastructure (including commercial real estate &
commercial real estate - residential housing) sectors by banks.
72. The directions contained in this Chapter ... |
(3) The post DCCO repayment schedule has been realistically designed to factor
in the initial cash flows.
Provided that, the original or revised repayment tenor, including the
moratorium period, if any, shall not exceed 85 per cent of the economic life of
a project.
76. For a given project, original / extended / a... |
79. Approvals / clearances which are contingent upon achievement of certain
milestones in terms of project completion shall be deemed to be applicable only
when such milestones are achieved. For example, consent to operate a boiler can
only be applied for after the construction of a boiler. Hence, the same shall not... |
shall be required for this purpose for all projects where the aggregate exposure of
all lenders is ₹100 crore or more.
83. The bank shall ensure that disbursal is proportionate to the stages of completion
of the project as also to the progress in equity infusion and other sources of
finance, agreed as part of finan... |
5
Current Specification of the Project
Asset classification, original/ extended DCCO, economic life, external rating, total
outstanding, provision held, current project cost excluding IDC, IDC, current capital
structure, D/E, DSCR, repayment tenor, repayment frequency.
86. The bank shall update any change in para... |
Chapter VIII - Credit Facilities to Real Estate Sector
A. Loans and advances to Real Estate Sector
88. A bank shall put in place a comprehensive Board-approved policy relating to the
ceiling on the total amount of real estate loans, single / group exposure limits for
such loans, margins, security, repayment schedul... |
(5) The bank may finance for construction meant for improving the conditions in
slum areas for which credit may be extended directly to the slum-dwellers on
the guarantee of the Government, or indirectly to them through the State
Governments.
(6) The bank may provide credit for slum improvement schemes to be
imple... |
(6) No loan should be given in respect of those properties which fall in the category
of unauthorized colonies unless and until they have been regularized and
development and other charges paid.
(7) No loan should also be given in respect of properties meant for residential use
but which the applicant intends to us... |
bodies, as defined above, the bank shall satisfy itself that the project is run on
commercial lines and that bank finance is not in lieu of or to substitute
budgetary resources envisaged for the project. The loan could, however,
supplement budgetary resources if such supplementing was contemplated in
the project de... |
99. For valuation of properties including collaterals accepted for their exposures, the
bank shall be guided by the instructions contained in of Reserve Bank of India
(Commercial banks - Credit Risk Management), Directions, 2025.
100. For valuation of land for the purpose of financing of land acquisition as also la... |
106. Such credit may be extended to builders of repute, employing professionally
qualified personnel. It shall be ensured, through close monitoring, that no part of
such funds is used for any speculation in land.
107. Care shall be taken to see that prices charged from the ultimate beneficiaries
do not include any ... |
# CRE-RH has been defined at paragraph 131.
Provided that the LTV ratios and Risk Weights for Claims secured by residential
property for loans sanctioned till June 06, 2017 shall be as set out below
Category of loan
LTV ratio (%) Risk weight (%)
(a) Individual Housing Loans
(i) Up to ₹30 lakh
≤80
35
>80 and ≤... |
disbursal of sanctioned individual housing loans to the builders without linking the
disbursals to various stages of construction of housing project, Interest / EMI on
the housing loan availed of by the individual borrower being serviced by the
builders during the construction period/ specified period, etc. This mig... |
B.8
Disclosure Requirements
119. In view of the observations of Hon’ble High Court of Judicature at Bombay,
while granting finance to specific housing / development projects, the bank shall
stipulate as a part of the terms and conditions that:
(1) the builder / developer / company shall disclose in the Pamphlets... |
especially against natural disasters. The bank may consider incorporating this
aspect in their loan policy. The bank may also adopt the guidelines issued by the
National Disaster Management Authority (NDMA) and suitably incorporate them
into their loan policy, procedures and documentation.
123. For pricing of housi... |
(2) An exposure shall be classified as Income-producing real estate (IPRE) /
Commercial Real Estate (CRE), if it results in the creation / acquisition of real
estate (such as, office buildings to let, retail space, multifamily residential
buildings, industrial or warehouse space, and hotels) where the prospects for ... |
attract a risk weight for CRE exposure or as warranted by the external rating of the
borrower, whichever is higher.
D. Simultaneous classification of CRE into other regulatory categories
127. It is possible for an exposure to get classified simultaneously into more than
one category, as different classifications ar... |
These shall attract applicable risk weights for equity exposures or RW for
exposures to AIFs, whichever is higher, if such risk weights are higher than the
prescribed risk weight for CRE in terms of Reserve Bank of India (Commercial
Banks – Prudential Norms on Capital Adequacy) Directions, 2025. The
exposure shall ... |
need not necessarily be classified as CRE Exposures. However, if the total
number of such units is more than two, the exposure for the third unit
onwards may be treated as CRE Exposure as the borrower may be renting
these housing units and the rental income would be the primary source of
repayment.
(iii) Loans for... |
illustratively would be the case where the co-developer is paid by
the main developer based on progress in work.
(v) Exposures to real estate companies
In some cases exposure to real estate companies is not directly linked to
the creation or acquisition of CRE, but the repayment would come from the
cash flows gene... |
themselves run these ventures shall fall in this category. Such loans
would generally be secured by these properties.
For instance, in the case of hotels and hospitals, the source of
repayment in normal course would be the cash flows generated by the
services rendered by the hotel and hospital. In the case of a hot... |
A company has two divisions. One division is engaged in real estate
activity, and other division is engaged in power production. An
infrastructure loan, for setting up of a power plant extended to such a
company, to be repaid by the sale of electricity shall not be classified as
CRE. The exposure may or may not be ... |
(b) The exposures to industrial units towards setting up of units or projects
and working capital requirement, etc. shall not be treated as CRE
Exposures.
(vii) Advances to Housing Finance Companies (HFCs)
Banks’ advances to those HFCs, which are mostly lending to individuals
for residential housing as per the nor... |
Chapter IX - Infrastructure Financing
A. Criteria for Financing
134. The bank shall finance technically feasible, financially viable and bankable
infrastructure projects undertaken by both public sector and private sector
undertakings subject to the following conditions:
(1) The bank shall have the requisite exper... |
B. Types of Financing by Banks
135. In order to meet financial requirements of infrastructure projects, the bank shall
extend credit facility by way of working capital finance, term loan, project loan,
subscription to bonds and debentures / preference shares / equity shares acquired
as a part of the project finance... |
Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets)
Directions, 2025.
(4) 22[Bank finance to InvITs for acquiring equity of other entities shall be subject
to the relevant conditions given in Chapter XI – Acquisition Finance].
(5) The Audit Committee of the Board of the bank shall review the c... |
D. Prudential requirements
140. For prudential credit exposure limits, the bank shall be guided by Reserve Bank
of India (Commercial Banks – Concentration Risk Management) Directions, 2025
.
141. For assignment of risk weight for capital adequacy purposes, the bank shall be
guided by the Reserve Bank of Ind... |
Chapter X - Discounting / Rediscounting of Bills
A bank shall adhere to the following guidelines while purchasing / discounting /
negotiating / rediscounting of genuine commercial / trade bills:
144. A bank shall sanction working capital limits as also bills limit to borrowers, only
after proper appraisal of their ... |
shall be assigned the risk weight as is normally applicable to inter-bank exposures,
for capital adequacy purposes. In the case of negotiations ‘under reserve’, the
exposure shall be treated as on the borrower and risk weight assigned accordingly.
However, in cases where the bills discounting / purchasing / negotiat... |
actual services are rendered, and accommodation bills are not discounted.
Services sector bills shall not be eligible for rediscounting. Further, providing
finance against discounting of services sector bills shall be treated as unsecured
advance and, therefore, shall be within the norm prescribed by the Board of th... |
Chapter XI - Acquisition Finance
A. 23[*****
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24[
170A. Without prejudice to the provisions of Foreign Exchange Management Act,
1999... |
core objective of creating long-term value for the acquirer through potential
synergies, rather than mere financial restructuring for short-term gains.
170B. In cases where acquiring control in a target company leads to control over
multiple companies due to control of such companies by the target company, the
crit... |
(2) to the acquiring company, for on-lending to a non-financial subsidiary
incorporated in India or overseas for acquisition of a target company by such
a subsidiary; or
(3) to an existing non-financial subsidiary of the acquiring company
incorporated in India or overseas, on the strength of the acquiring comp... |
agency. If there is no rating available for the acquiring company at the
time of sanction, it shall have to be obtained prior to disbursement of
acquisition finance.
Explanation:
(i)
The above financial criteria of the acquiring company shall be examined
at consolidated as well as standalone levels.
(ii)
Net W... |
(i)
Own funds, for this purpose, shall mean funds demonstrably sourced from
the acquiring company's internal accruals, sale of assets or redemption of
investments, or issuance of fresh equity.
(ii)
Proceeds of any borrowing; or any instrument that carries a fixed repayment
obligation or a put option exercisable ... |
Provided that, where the acquiring company already holds control over the target
company prior to seeking acquisition finance, acquisition finance may be extended
only for acquiring additional stake that crosses a substantial threshold of 26 per
cent, 51 per cent, 75 per cent, 90 per cent of voting rights, each conf... |
arrangement for a particular deal, across all its overseas branches, shall not
exceed 20 per cent of total funding under the deal.
170S. Banks shall fix limits for their aggregate exposures towards acquisition finance
within the regulatory limit as specified in Chapter V of the Reserve Bank of India
(Commercial B... |
Chapter XII - Credit Facilities to Overseas Joint Ventures (JV) / Wholly Owned
Subsidiaries Abroad and overseas Step-down Subsidiaries of Indian
Companies
171. The bank may extend fund-based facilities to Indian Joint Ventures / Wholly–
owned Subsidiaries abroad and Step-down subsidiaries which are wholly owned
by ... |
recognised under the Indian Accounting Standards. In addition, the Indian
parent company must directly hold a minimum 51 per cent of its shareholding.
Explanation: As per the Indian Accounting Standards, control has been defined
as (a) the ownership, directly or indirectly, through subsidiary(ies), of more than
one... |
(2) The countries where the joint ventures / wholly owned subsidiaries are located
shall have no restrictions applicable to these companies in regard to obtaining
foreign currency loans or for repatriation etc. and shall permit non-resident
banks to have legal charge on securities / assets abroad and the right dispo... |
Chapter XIII - Loans Against Financial Assets
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M. Advances against Fixed Deposit Receipts (FDRs)
215. The bank shall desist from sanctioning advances against FDRs or other term
deposits of other banks.
216. Grant of advance against NR(E) and FCNR(B) deposits shall be subject to the
guidelines issued under Foreig... |
219A. Banks may extend credit facilities against the collateral of eligible securities, as
permitted in this chapter, as per their approved policy (hereinafter called the policy).
The policy shall, at the minimum, specify the criteria for selecting securities as
collateral; determining portfolio-level as well as sin... |
219C. While undertaking lending activities under the provisions of this chapter, a bank
shall:
(1) put in place robust mechanisms to monitor end use of the funds.
(2) stipulate suitable risk limits taking into account inter alia the liquidity,
volatility, and potential stress period corrections in the price of secu... |
Q.2
Lending to Individuals
Q.2.1 Scope
219E. Loans to individuals, including Hindu Undivided Families (HUFs) which are not
commercial entities, shall be covered under this section.
219F. Banks may lend to individuals against eligible securities, subject to the LTVs
and prudential ceilings specified hereunder.
Q... |
Q.2.3 Prudential Ceilings
219J. Banks may fix their own prudential limits in terms of their approved policy for
loans to individuals against collateral of Government securities (including T-Bills),
listed debt securities and units of debt mutual fund schemes.
Provided that, during the tenor of the loan, if the cred... |
219O. A bank may provide finance, as per its approved policy, to non-financial entities
against eligible securities, in addition to other collateral, for financing their working
capital or for other productive purposes.
Q.3.2 Bridge Finance for Financing Promoter’s stake in New Companies
219P. Banks may put in a Bo... |
Chapter XIII A – Credit Facilities to Capital Market Intermediaries (CMIs)
A. Scope
219S. Provisions of this Chapter are applicable to lending to CMIs, as defined under
these Directions.
B. General Conditions
219T. Credit facilities may be extended only to CMIs which are registered and
regulated by a financial s... |
219Z. Banks shall not provide credit facilities to a CMI for acquisition of securities on
its own account, including for proprietary trading or investments.
Provided that:
(1) a bank may extend finance to approved market makers in equity and debt
securities on a fully secured basis.
(2) a bank may provide worki... |
(1) In case of intra-day limits extended to CMIs, a relaxed minimum collateral
requirement of 50 per cent shall apply in case the intra-day limit is utilised
for meeting shortfall arising on account of settlement timing difference in
centrally cleared trades placed on behalf of clients, provided the CMI has
expecte... |
Chapter XIV - Finance to Non-Banking Financial Companies (NBFCs)
Background: Consistent with the policy of bestowing greater operational freedom to
banks in the matter of credit dispensation and in the context of mandatory registration
of NBFCs with the Reserve Bank, most of the aspects relating to financing of NBFC... |
Reserve Bank of India Act, 1934, including the need for registration with the
Reserve Bank. For such NBFCs which do not need registration with the Reserve
Bank, the bank shall take its credit decisions on the basis of usual factors like the
purpose of credit, nature and quality of underlying assets, repayment capaci... |
(4) All types of loans and advances by NBFCs to their subsidiaries, group
companies / entities.
(5) Finance to NBFCs for further lending to individuals for subscribing to Initial
Public Offerings (IPOs) and for purchase of shares from secondary market.
225. Leased and Sub-Leased Assets
As banks can extend financia... |
categories of NBFCs. The bank shall strictly follow these instructions and ensure
that they are not circumvented in any manner whatsoever by purport and / or intent
by sanction of credit under a different nomenclature like unsecured negotiable
notes, floating rate interest bonds, etc., as also short-term loans, the ... |
Chapter XV - Export Credit
Background: The Reserve Bank first introduced the scheme of Export Financing in
1967. The scheme is intended to make short-term working capital finance available
to exporters at internationally comparable interest rates. Export credit is available
both in Rupee as well as in foreign curre... |
A.3
Liquidation of Packing Credit
240. The packing credit / pre-shipment credit granted to an exporter shall be
liquidated out of proceeds of bills drawn for the exported commodities on its
purchase, discount etc., thereby converting pre-shipment credit into post-shipment
credit. Further, subject to mutual agreem... |
(1) Repayment / liquidation of packing credit with proceeds of export documents
shall; continue; however, this shall be with export documents relating to any
other order covering the same or any other commodity exported by the
exporter. While allowing substitution of contract in this way, the bank shall
ensure that... |
(1) ‘Running Account’ facility can be extended only to those exporters whose track
record has been good as also to Export Oriented Units (EOUs) / Units in Free
Trade Zones / Export Processing Zones (EPZs) and Special Economic Zones
(SEZs).
(2) In all cases where Pre-shipment Credit ‘Running Account’ facility has be... |
B. Rupee Pre-shipment Credit to specific sectors / segments
B.1
Rupee Export Packing Credit to manufacturer suppliers for exports
routed through STC / MMTC / Other Export Houses, Agencies etc.
248. The bank may grant export packing credit to manufacturer suppliers who do not
have export orders / letters of credit... |
(4) The EOH shall be responsible for exporting the goods as per export order or
overseas LC and any delay in the process will subject it to the penal provisions
issued from time to time. Once the sub-supplier makes available the goods as
per inland LC terms to the EOH, its obligation of performance under the
scheme... |
B.3
Rupee Pre-shipment Credit to Construction Contractors
250. The packing credit advances to the construction contractors to meet their initial
working capital requirements for execution of contracts abroad shall be made on
the basis of a firm contract secured from abroad, in a separate account, on an
undertakin... |
(2) The exporter is registered with the Electronic and software EPC or Services
EPC or with Federation of Indian Export Organisations, as applicable.
(3) There is an Export Contract for the export of the service.
(4) There is a time lag between the outlay of working capital expense and actual
receipt of payment fro... |
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