The Reserve Bank of India clarified to banks on Thursday that the period of availing trade credit for imports should be linked to the operating cycle and trade transaction period.
Importers can avail of trade credit at an all-in-cost ceiling of 350 basis points over the London Interbank Offer Rate (LIBOR) till September 30, the RBI added.
In separate notification, the central bank extended the rule of refinancing existing overseas borrowings by raising fresh external commercial borrowings till September 30.
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