Easing the norms for foreign currency loans, the Reserve Bank of India (RBI) has raised the spread for interest cost on trade credit.

<tr><td><p class='TableClas'></p><P class='TableClas'><DIV CLASS=rightDiv><script language="JavaScript">
		google_ad_client = 'businessstandard';
		//google_ad_client = 'ca-businessstandard_js';
		google_ad_width = 200;
		google_ad_height = 200;
		google_ad_format = "200x200_as";
		google_ad_type = "text";
		google_ad_channel = "";
		//google_color_border = "FFFFFF";
		google_color_border = "F7F7F7";
		//google_color_bg = "FFFFFF";
		google_color_bg = "ffffff";
		//google_color_link = "639ACE";
		google_color_link = "0253B7";
		google_color_text = "000000";
		google_color_url = "D63431";
		//google_skip = adsenseSkip;
		</script> 
		<script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
		</script> </DIV><p class='TableClas'>Trade credit is a short-term credit for six months to a year given to importers, which is otherwise referred to as post-shipment and pre-shipment foreign currency credit (PCFC). It is pegged to a spread over the international interest rate benchmark 

RBI raises rates for trade credit

More From This Section

Rating outlook for Mumbai Airport revised to stable

Biggest fall for Re in 3 weeks; may rise from current levels

RBI forecasters cut growth projection for FY13 to 5.5%

ICICI, Axis Bank raise deposit rate ahead of RBI policy

Explore News