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Exim Bank's USD 2.1 Mn Line of Credit to Guyana

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Source: Reserve Bank of India · RBI/2006-2007/232 · issued 15 Jan 2007 · ~2 min read

Quick answerRBI notified AD Category-I banks about Exim Bank's USD 2.10 million line of credit to Guyana for a traffic signalling project. Banks must facilitate exports under this credit, ensure GR/SDF form compliance, and allow commission remittances only after full contract value realisation.

The rule, in the simplest words

Banks must help facilitate exports under this credit.
Shipments must be declared on GR/SDF forms as per RBI instructions.
Commission remittances are allowed only after full contract value realisation.

How it plays out — a real example

A forex & trade-finance officer in Indore helps an Indian exporter by ensuring that shipments under this credit are declared on GR/SDF forms as per RBI guidelines. After the full contract value is realised, the officer allows commission remittances from the exporter's own resources or EEFC accounts.

What changed

Exim Bank signed a credit agreement with Guyana on November 7, 2006, effective December 15, 2006, for a USD 2.10 million line of credit. The credit finances a traffic signalling system by an Indian company in Georgetown, with at least 85% of the amount reserved for eligible Indian goods. Letters of credit must be opened by December 14, 2008, and disbursements completed by June 14, 2009.

What it means for you

Indian banks handling export transactions under this credit must ensure shipments are declared on GR/SDF forms as per RBI instructions. No agency commission is payable under the credit, but banks may allow commission remittances from exporters' own resources or EEFC accounts after full contract value is realised. This supports Indian exports and strengthens bilateral trade ties.

What you must do

Inform exporter customers about the 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 RBI guidelines.
Process commission remittances only after full contract value realisation and compliance with prevailing rules.
Verify that at least 85% of the credit is used for eligible Indian goods as defined in the credit agreement.

Who it affects

AD Category-I banks, Indian exporters dealing with Guyana, Exim Bank

❓ Common questions

Regulatory timeline

Stated effective date effective December 15, 2006
Decoded by BankPulse 2026-06-19 18:15 IST

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

What is the purpose of this line of credit?

It finances a traffic signalling system in Georgetown, Guyana, by an Indian company, M/s. CMS Traffic System Ltd.

What are the key deadlines for this credit?

Letters of credit must be opened by December 14, 2008, and disbursements completed by June 14, 2009.

Can agency commission be paid under this credit?

No agency commission is payable under the credit, but exporters may use their own resources or EEFC balances for commission in free foreign exchange after full contract value realisation.

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

RBI/2006-2007/232

 A. P. (DIR Series) Circular No. 28 

 January 15, 2007 

 To, 

 All Authorised Dealer Category – I Banks 

 Madam / Sir, 

 Exim Bank's Line of Credit of USD 2.10 million 
 to the Government of the Cooperative Republic of Guyana 

 Export-Import Bank of India (Exim Bank) has 
 concluded an agreement with the Government of the Cooperative Republic of Guyana, 
 making available to the latter a Line of Credit (LOC) up to an aggregate sum 
 of USD 2.10 Million (US Dollar Two Million and One Hundred Thousand only) under 
 the credit agreement dated November 07, 2006 to finance setting up a traffic 
 signalling system by M/s. CMS Traffic System Ltd. (an Indian Company) in Georgetown, 
 Guyana. The credit is available for financing export of equipment, goods and 
 services 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. Out of the total credit, not less than 85 per cent shall be utilised 
 for financing purchase of 'Eligible Indian Goods' as defined in the Credit Agreement. 

 2. The credit agreement under the LOC is 
 effective from December 15, 2006. The terminal date for opening Letters of Credit 
 will be December 14, 2008 (24 months from the effective date) and the terminal 
 date for disbursements will be June 14, 2009 (30 months from the effective date). 

 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 is payable under 
 the above 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, 

 (M. Sebastian)

 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/232 · issued 15 Jan 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, Indian exporters dealing with Guyana, Exim Bank), your first concrete step on “Exim Bank's USD 2.1 Mn Line of Credit to Guyana” is: “Inform exporter customers about the line of credit and direct them to Exim Bank for full details.” (RBI issued this 15 Jan 2007).

Circular: RBI/2006-2007/232 -- Exim Bank's USD 2.1 Mn Line of Credit to Guyana
Issued: 15 Jan 2007
Action required: Inform exporter customers about the line of credit and direct them to Exim Bank for full details.
Action required: Ensure all shipments under this credit are declared on GR/SDF forms as per RBI guidelines.
Action required: Process commission remittances only after full contract value realisation and compliance with prevailing rules.
Action required: Verify that at least 85% of the credit is used for eligible Indian goods as defined in the credit agreement.
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=3243&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.