The Reserve Bank of India (RBI) has scrapped the limit on banks to extend buyer's credit, as a step to push project exports. The RBI has withdrawn the earlier ceiling of $20 million for buyer's credit extended to foreign buyers for export of goods on deferred payment terms and turn key projects from India.
The step has been taken to further liberalising the procedures for export of goods and services, said an RBI statement. Memorandum of instructions on project and service exports has been revised accordingly.
