Master Circular on External Commercial Borrowings and Trade Credits

July 01, 2015

To
All Authorised Dealer Category I banks and Authorised banks

Madam / Sir

Master Circular on External Commercial Borrowings and Trade Credits

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.

2. 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 Master Circular may be referred to for general guidance. The Authorised Persons and the Authorised Dealer Category I banks may refer to respective circulars/ notifications for detailed information, if so needed.

3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated.

Yours faithfully

(B P Kanungo)
Principal Chief General Manager