MUMBAI The Reserve Bank of India (RBI) said exporters can now get long-term loans from banks for up to 10 years to service export contracts, easing earlier rules that only allowed loans of up to one year.
Banks can make such payments to exporters with a "satisfactory" track record of three years and adjust these payments against future exports, the RBI notified on Wednesday.
The RBI also said banks cannot charge interest rates exceeding 200 basis points above LIBOR.
In addition, exporters who receive loans of $100 million or above need to report the transaction immediately to the central bank.
(Reporting by Neha Dasgupta and Swati Bhat; Editing by Rafael Nam)
Trending On Reuters
The deaths of a number of witnesses in a massive fraud case surrounding cheating at college and government jobs has become the latest source of discomfort for the Bharatiya Janata Party (BJP), already on the defensive over influence trafficking allegations. Full Article
Insight - Car dashboards that act like smart phones raise safety issues Full Article