No longer current — replaced by Master Circular – Guarantees and Co-acceptances
Source: Reserve Bank of India · RBI/2004-05/447 · issued FY 2004-05 · ~1 min read
Quick answerRBI notified a $5 million short-term line of credit from Exim Bank to PTA Bank for financing Indian exports of raw materials, commodities, and services to 16 Eastern and Southern African countries. The credit is available for up to 180 days, with LCs to be opened by September 30, 2006.
What changed
Exim Bank signed an agreement with PTA Bank on March 3, 2005, effective April 1, 2005, providing a $5 million line of credit for up to 180 days. This facility supports exports to 16 member countries, with specific deadlines for LC opening and disbursement.
What it means for you
Indian exporters gain a new financing avenue for shipments to Eastern and Southern Africa, reducing payment risks. Banks must ensure shipments under this credit are declared on GR/SDF forms and note that no agency commission is payable, though exporters may pay from their own resources if needed.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Inform exporter clients about this line of credit and direct them to Exim Bank for full details.
Ensure all shipments under this credit are declared on GR/SDF forms as per existing instructions.
Advise exporters that no agency commission is payable under this credit; any commission must be from their own resources.
Who it affects
Authorised dealer banks handling foreign exchange, Indian exporters of raw materials, commodities, and services to PTA Bank member countries
❓ Common questions
Regulatory timeline
Stated effective dateeffective April 1, 2005
Decoded by BankPulse2026-06-19 20:56 IST
Superseded by — Master Circular – Guarantees and Co-acceptances
Status change: superseded05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the maximum tenure of the line of credit?
The line of credit is short-term, up to 180 days.
Which countries are covered under this credit?
The credit covers 16 member countries of PTA Bank: Burundi, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Somalia, Sudan, Tanzania, Uganda, Zambia, and Zimbabwe.
What are the key deadlines for this facility?
Letters of credit must be opened by September 30, 2006, and disbursement must be completed by March 31, 2007.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded byMaster Circular – Guarantees and Co-acceptances
📜 Read the original circular — full text as issued by RBI
RBI/2004-05/447
A.P.(DIR Series) Circular No. 41
April 30 , 2005
To
All Banks authorised to deal in Foreign Exchange
Madam / Sirs,
Exim Bank's Line of Credit of USD 5 million to
Eastern and Southern African Trade and Development Bank (PTA Bank)
The Export-Import Bank of India (Exim Bank)
has concluded an agreement with Eastern and Southern African Trade and Development
Bank (PTA Bank) on March 3, 2005 making available to the latter a short term
Line of Credit (LOC) upto 180 days and upto an aggregate sum of USD 5 Million
(US Dollar five million only). The credit is available for financing export
of raw materials, commodities and other goods and services from India to sixteen
(16) member countries of PTA Bank, viz. Burundi, Comoros, Djibouti, Egypt, Eritrea,
Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Somalia, Sudan, Tanzania, Uganda,
Zambia and Zimbabwe in Eastern and Southern Africa.
2. The credit agreement has become effective
on April 1, 2005. The last dates for opening letters of credit and disbursement
of credit are September 30, 2006 and March 31, 2007 respectively.
3. Shipments under the credit will have to be
declared on GR / SDF Forms as per instructions issued from time to time.
4. No agency commission is ordinarily payable
under the above line of credit. However, if necessary, the exporter can use
his own resources for such payments.
5. Authorised Dealer Banks may bring the contents
of this circular to the notice of their exporter constituents and advise them
to obtain full details of the Line of Credit from Exim Bank's office or its
website.
6. The direction contained in this circular
has been issued under sections 10(4) and 11(1) of the Foreign Exchange Management
Act (FEMA), 1999 (42 of 1999) and is without prejudice to permissions / approvals,
if any, required under any other law.
Yours faithfully
(F.R.Joseph)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-05/447 · issued FY 2004-05. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2233&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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