CIR. NO. 94/2003-04-RB, DT. 07/06/2004
- Document type
- Circular
- Dated
- Category
- A.P. (DIR Series) Circulars
Exchange Earners' Foreign Currency(EEFC) Account Scheme-Trade Related Loans/Advances
Exchange Earners' Foreign Currency(EEFC) Account Scheme-Trade Related Loans/Advances
2. As a measure of further liberalisation, it has now been decided to raise the above limit to USD 1,00,000 from USD 25,000. Accordingly, guarantee of a bank of international repute situated outside India will be required to be provided by the overseas borrower in favour of the lender where the amount of trade related loan / advance by exporter out of his EEFC Account exceeds USD 1,00,000.
3. The reporting requirement will continue as per A.P. (DIR Series) Circular 78 dated February 14, 2003.
4. The necessary amendment to the Foreign Exchange Management Act (Borrowing or Lending in Foreign Exchange) Regulations,2000 has been issued vide Notification No.FEMA 112/2004-RB dated March 6,2004 (copy enclosed).
5. Authorised Dealers may bring the contents of the circular to the notice of their constituents concerned.
6. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager