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Exim Bank's USD 11 mn LOC to Senegal for Indian exports

Current · Source: Reserve Bank of India · RBI/2006-07/323 · issued 16 Apr 2007 · ~2 min read

Quick answerRBI notifies AD Category-I banks about Exim Bank's USD 11 million line of credit to Senegal for financing Indian exports, mainly vehicles and women poverty alleviation programme. At least 85% of credit must fund goods of Indian origin. No agency commission is payable on these exports.

The rule, in the simplest words

Exim Bank gave a loan of 11 million US dollars to Senegal so Senegal can buy things from India, like 400 cars and items to help poor women.
At least 85% of the loan money must be used to buy goods that are made in India.
Banks cannot let exporters pay any commission (extra fee) to agents for these exports. If an exporter needs to pay commission, they must use their own money or a special account (EEFC) after they get paid for the full order.
Exporters must fill out special forms (GR/SDF) for every shipment under this loan, as the Reserve Bank of India says.

How it plays out — a real example

A forex & trade-finance officer in Indore gets a call from an exporter who wants to ship 50 cars to Senegal under this loan. The officer reminds the exporter: 'You must fill out the GR form for each car, and remember, no agent commission is allowed on this deal. If you need to pay a commission, you can only do it from your own money after Senegal pays you the full amount.'

What changed

Exim Bank signed a credit agreement with Senegal on January 15, 2007, effective February 20, 2007, for a USD 11 million line of credit. The credit supports Indian exports of 400 vehicles and items for a women poverty alleviation programme. Terminal utilisation period is 48 months for project exports and 72 months (until January 14, 2013) for other supply contracts.

What it means for you

AD Category-I banks must inform exporter clients about this LOC and ensure shipments are declared on GR/SDF forms as per RBI instructions. No agency commission is allowed on these exports, but exporters can use their own resources or EEFC balances to pay commission in free foreign exchange after full contract value realisation. Banks can permit such remittances subject to existing commission payment rules.

What you must do

Notify exporter constituents about Exim Bank's USD 11 million LOC to Senegal and direct them to Exim Bank for full details.
Ensure all shipments under this LOC are declared on GR/SDF forms as per prevailing RBI instructions.
Do not allow any agency commission on exports financed under this LOC; if commission is needed, ensure it is paid from exporter's own resources or EEFC account after full contract value realisation.
Verify that at least 85% of the credit is used for goods of Indian origin as per the Foreign Trade Policy.

Who it affects

AD Category-I banks, Exporters dealing with Senegal, Exim Bank

❓ Common questions

Regulatory timeline

Stated effective date effective February 20, 2007
Decoded by BankPulse 2026-06-19 17:28 IST

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

What is the minimum Indian content requirement for exports under this LOC?

At least 85% of the total credit must be used to finance purchase of eligible goods from India or goods of Indian origin.

Can exporters pay agency commission on these exports?

No agency commission is payable on exports financed under this LOC. However, exporters may use their own resources or EEFC account balances to pay commission in free foreign exchange after full contract value realisation, subject to RBI's prevailing instructions.

What is the terminal utilisation period for supply contracts under this LOC?

For supply contracts other than project exports, the terminal utilisation period ends 72 months from the date of the credit agreement, i.e., January 14, 2013.

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

RBI/2006-07/323

A.P. (DIR Series) Circular No. 39 
 April 16, 2007

 To,

 All Category - I Authorised Dealer Banks

 Madam / Sir,

 Exim Bank's Line of Credit (LOC) of USD 11 million to the 
 Government of the Republic of Senegal 

 Export-Import Bank of India (Exim Bank) has concluded an agreement 
 dated January 15, 2007 with Government of the Republic of Senegal, 
 making available to the latter, a Line of Credit (LOC) of USD 11 million (USD 
 Eleven million only) for financing Indian exports to Senegal to support the 
 women poverty alleviation programme and acquisition of 400 vehicles from India 
 which are eligible for export under the Foreign Trade Policy of the Government 
 of India and whose purchase may be agreed to be financed by Exim Bank under 
 this Agreement. Out of the total credit, not less than 85 per cent shall be 
 utilised for financing purchase of eligible goods from India or be of Indian 
 origin.

 2. The Credit Agreement under the LOC is effective from February 
 20, 2007. Under the LOC, the terminal utilisation period will expire at the 
 end of 48 months from the scheduled completion date(s) of contract(s) in case 
 of project exports and January 14, 2013 (72 months from date of execution of 
 Credit Agreement i. e. January 15, 2007) 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 Reserve Bank from time to time.

 4. No agency commission shall be payable in respect of exports 
 financed under the line of credit. However, if required, the exporter may use 
 his own resources or utilise balances of his EEFC account for payment of commission 
 in free foreign exchange. Authorised Dealer Category - I (AD Category - I) banks 
 may allow such remittance after realisation of full payment of contract value 
 subject to compliance of prevailing instructions on payment of agency commission.

 5. AD Category - I 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 at Centre One, Floor 21, 
 World Trade Centre Complex, Cuffe Parade, Mumbai 400 005.

 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,

 (Salim Gangaharan)

 Chief General Manager-in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-07/323 · issued 16 Apr 2007. 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 (AD Category-I banks, Exporters dealing with Senegal, Exim Bank), your first concrete step on “Exim Bank's USD 11 mn LOC to Senegal for Indian exports” is: “Notify exporter constituents about Exim Bank's USD 11 million LOC to Senegal and direct them to Exim Bank for full details.” (RBI issued this 16 Apr 2007).

Circular: RBI/2006-07/323 -- Exim Bank's USD 11 mn LOC to Senegal for Indian exports
Issued: 16 Apr 2007
Action required: Notify exporter constituents about Exim Bank's USD 11 million LOC to Senegal and direct them to Exim Bank for full details.
Action required: Ensure all shipments under this LOC are declared on GR/SDF forms as per prevailing RBI instructions.
Action required: Do not allow any agency commission on exports financed under this LOC; if commission is needed, ensure it is paid from exporter's own resources or EEFC account after full contract value realisation.
Action required: Verify that at least 85% of the credit is used for goods of Indian origin as per the Foreign Trade Policy.
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=3417&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.