RBI relaxes norms for imported goods by raising trade credit to $150 mn

All-in-cost includes rate of interest, other fees, expenses, charges, and guarantee fees

The Reserve Bank of India (RBI) on Wednesday relaxed norms for imports of capital and non-capital goods by raising the trade credit limit to $150 million under the automatic route.
 

Announcing the modified revised framework for 'Trade Credit Policy', the RBI, however, reduced the all-inclusive cost (all-in-cost) for overseas loans to benchmark rate plus 250 basis points from the earlier 350 bps.
 

Trade credits (TCs) refer to the credits extended by the overseas supplier, bank, financial institution and other permitted recognised lenders for maturity for imports of capital and non-capital goods permissible.
 

According to the revised framework, TCs up to