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CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th Floor, 7 Cooperage Road, Mumbai - 400 001.India.
Tel : +91 22 22021288 / * Fax : +91 22 22026684
* E-mail : info@chemexcil.gov.in Web : https://chemexcil.in
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EPC/LIC/RBI/LOU
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14/03/2018
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ALL MEMBERS OF THE COUNCIL
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RBI
Discontinuation of Letters of Undertaking (LoUs) and Letters of
Comfort (LoCs) for Trade Credits
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Dear Members,
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Kindly note that the Reserve Bank of India (RBI) has issued A.P. (DIR Series) Circular No. 20 dated March 13, 2018 regarding discontinuation of the practice of issuance of LoUs/ LoCs for Trade Credits for imports into India by AD Category –I banks with immediate effect.
However, Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued subject to compliance with the provisions contained in Department of Banking Regulation Master Circular No. DBR. No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015 on “Guarantees and Co-acceptances”, as amended from time to time.
Members are requested to take note of this important change and do the needful accordingly. Your feed-back on this change can also be sent on e-mail id’s: ed@chemexcil.gov.in & deepak.gupta@chemexcil.gov.in. The original circular is available for download using below link-
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI139F15274F2540046CE9C14E9DFEAA60941.PDF
Thanking You,
Yours faithfully,
S.G. BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL
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