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Exim Bank's $27.7 mn Line of Credit to Mali and Senegal

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Source: Reserve Bank of India · RBI/2005-06/414 · issued 15 Jun 2006 · ~2 min read

Quick answerRBI notifies AD banks of Exim Bank's $27.7 mn LOC to Mali ($20.62 mn) and Senegal ($7.08 mn) for Indian exports of railway coaches and locomotives. Effective April 27, 2006, with disbursement timelines up to 72 months. No agency commission is payable under this credit.

The rule, in the simplest words

Exim Bank has a $27.7 mn Line of Credit for Indian exports to Mali and Senegal.
The LOC is for financing railway coaches and locomotives, with a 48-month deadline for project exports and 72 months for other supply contracts.
No agency commission is payable under this credit, but exporters can use their own resources or EEFC balances for commission in free foreign exchange.

How it plays out — a real example

A forex & trade-finance officer in Indore, Mr. Kumar, helps an exporter, Mrs. Rao, understand the terms of the LOC. He explains that the LOC is for financing railway coaches and locomotives, and that the exporter has 48 months to complete the project. Mr. Kumar also advises Mrs. Rao that she can use her own resources or EEFC balances to pay commission in free foreign exchange.

What changed

Exim Bank signed a credit agreement with Mali and Senegal for a $27.7 mn Line of Credit, effective April 27, 2006. The LOC is earmarked for financing Indian exports of railway coaches and locomotives. Terminal dates for L/C opening and disbursement are set at 48 months for project exports and 72 months for other supply contracts from the agreement date.

What it means for you

Banks can now process export transactions under this LOC, ensuring compliance with FEMA and RBI guidelines. No agency commission is payable, but exporters may use EEFC balances for commission in free foreign exchange after full payment realisation. AD banks must advise exporters to get full details from Exim Bank.

What you must do

Inform exporter constituents about this LOC and direct them to Exim Bank for details.
Ensure shipments under this credit are declared on GR/SDF Forms as per RBI instructions.
Allow remittance of agency commission only after full contract value realisation, using exporter's own resources or EEFC balances.
Verify that L/Cs and disbursements adhere to the specified terminal dates (48/72 months).

Who it affects

All Category I Authorised Dealer Banks, Exporters of railway coaches and locomotives to Mali and Senegal, Exim Bank

❓ Common questions

Regulatory timeline

Stated effective date Effective April 27, 2006
Decoded by BankPulse 2026-06-19 18:25 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the total value of the Line of Credit and how is it split?

The total LOC is USD 27.7 million, with USD 20.62 million for Mali and USD 7.08 million for Senegal.

What are the terminal dates for opening Letters of Credit?

For project exports, 48 months from the scheduled completion date of the contract; for other supply contracts, 72 months from the execution date of the Credit Agreement (i.e., August 7, 2011).

Can exporters pay agency commission under this LOC?

No agency commission is payable under this credit. However, if required, exporters may use their own resources or EEFC account balances to pay commission in free foreign exchange after full payment realisation.

📜 Read the original circular — full text as issued by RBI

RBI/2005-06/414 

 A. P. (DIR Series) Circular No. 38 

 June 15, 2006 

 To, 

 All Category I Authorised Dealer Banks 

 Madam / Sir, 

 Exim Bank's Line of Credit of USD 27.7 million 
 to the Government of the Republic of Mali and Senegal (Mali- USD 20.62 mn. Senegal 
 - USD 7.08 mn.) 

 The Export-Import Bank of India (Exim Bank) 
 has concluded an agreement with the Government of Mali and Senegal making available 
 to the latter a Line of Credit (LOC) up to an aggregate sum of USD 27.7 Million 
 (US Dollar Twenty Seven million seven hundred thousand only) [Government of 
 the Republic of Mali - USD 20.62 mn. and Government of the Republic of Senegal 
 - USD 7.08 mn.] . The Credit Agreement has become effective on April 27, 2006. 
 The credit is available for financing export of equipment, goods and services 
 which are eligible for export under the Foreign Trade Policy of Government of 
 India from India for acquisition of railway coaches and locomotives by Senegal 
 and Mali. 

 2. The terminal dates for opening Letters 
 of Credit and disbursement of credit are 48 months from scheduled completion 
 date of contract in case of project exports and 72 months from execution date 
 of the Credit Agreement i.e. August 7, 2011 in case of other supply contracts. 

 3. Shipments under the credit will have to 
 be declared on GR / SDF Forms as per instructions issued by the Reserve Bank 
 from time to time. 

 4. No agency commission is payable under 
 the above line of credit. However, if required, the exporter may use his own 
 resources or utilize balances of his EEFC account for payment of commission 
 in free foreign exchange. Authorised Dealer banks may allow such remittance 
 after realisation of full payment of contract value subject to compliance with 
 the prevailing instructions on payment of agency commission. 

 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 (www.eximbankindia.com). 

 6. The directions contained in this circular 
 have 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, 

 (M. Sebastian)

 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/414 · issued 15 Jun 2006. The plain-English explanation above is BankPulse’s own independent summary.

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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Category I Authorised Dealer Banks, Exporters of railway coaches and locomotives to Mali and Senegal, Exim Bank), your first concrete step on “Exim Bank's $27.7 mn Line of Credit to Mali and Senegal” is: “Inform exporter constituents about this LOC and direct them to Exim Bank for details.” (RBI issued this 15 Jun 2006).

Circular: RBI/2005-06/414 -- Exim Bank's $27.7 mn Line of Credit to Mali and Senegal
Issued: 15 Jun 2006
Action required: Inform exporter constituents about this LOC and direct them to Exim Bank for details.
Action required: Ensure shipments under this credit are declared on GR/SDF Forms as per RBI instructions.
Action required: Allow remittance of agency commission only after full contract value realisation, using exporter's own resources or EEFC balances.
Action required: Verify that L/Cs and disbursements adhere to the specified terminal dates (48/72 months).
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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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=2903&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.