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Exim Bank's $10M Line of Credit to Gambia for National Assembly Building

Current · Source: Reserve Bank of India · RBI/2008-09/395 · issued 26 Feb 2009 · ~2 min read

Quick answerRBI notifies AD Category-I banks about Exim Bank's USD 10 million Line of Credit to Gambia for constructing its National Assembly Building. Banks must ensure 85% Indian content, no agency commission from LOC proceeds, and use GR/SDF forms for shipments.

The rule, in the simplest words

At least 85% of the contract price must be Indian goods or services (so most of the work comes from India).
No agency commission can be paid from the LOC (loan of money) funds; it can only come from the exporter’s own money or EEFC account after the whole contract is paid.
All shipments under this LOC must be recorded on GR/SDF forms (official shipping documents).
The Letter of Credit (LC) must be opened and money disbursed within 48 months for project exports and within 72 months for supply contracts, counted from the execution date.
Banks must tell their exporter clients about the LOC and direct them to Exim Bank for full details.

How it plays out — a real example

Rohit, a senior export officer at an AD Category‑I bank in Mumbai, receives a request from an Indian steel exporter who wants to supply steel for the Gambia National Assembly Building. He checks that the steel makes up at least 85% of the contract, confirms that no commission will be taken from the LOC money, files the required GR/SDF form, and arranges the LC so it is opened well within the 48‑month window, ensuring a smooth export process.

What changed

Exim Bank signed a Line of Credit agreement with Gambia on August 8, 2008, effective February 2, 2009, for USD 10 million to finance exports for building the National Assembly Building Complex. The circular outlines operational instructions for AD Category-I banks, including last dates for LC opening and disbursement (48 months for project exports, 72 months for supply contracts from execution date).

What it means for you

Banks handling this LOC must verify that at least 85% of contract value is sourced from India and that no agency commission is paid from LOC funds. They can allow commission remittances from exporter's own resources or EEFC accounts only after full contract payment realization. This reinforces compliance with FEMA provisions and export declaration procedures.

What you must do

Inform exporter clients about the LOC and direct them to Exim Bank for full details.
Ensure shipments under this LOC are declared on GR/SDF forms as per RBI instructions.
Do not allow agency commission payments from LOC proceeds; permit only from exporter's own resources or EEFC after full payment realization.
Verify that at least 85% of contract price goods/services are from India for each eligible contract.

Who it affects

AD Category-I banks handling export transactions under this LOC, Exporters seeking financing for projects in Gambia under this credit line, Exim Bank as the lending institution

❓ Common questions

Regulatory timeline

Stated effective date effective February 2, 2009
Decoded by BankPulse 2026-06-19 10:55 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 USD 10 million Line of Credit to Gambia?

It finances export of Indian goods and services for constructing the National Assembly Building Complex in Gambia, with at least 85% of contract value from India.

Can exporters pay agency commission from this LOC?

No, agency commission cannot be paid from LOC proceeds. Exporters may use their own resources or EEFC balances for commission after full contract payment is realized.

What are the deadlines for using this credit line?

For project exports, LCs must be opened and disbursed within 48 months from scheduled contract completion. For supply contracts, the deadline is 72 months from the credit agreement execution date (August 7, 2014).

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

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P. (DIR Series) Circular No. 56 February 26, 2009 To All Category - I Authorised Dealer Banks Madam / Sir, Exim Bank's Line of Credit of USD 10 million to the Government of the Republic of Gambia Export-Import Bank of India (Exim Bank) has concluded an Agreement dated August 8, 2008 with the Government of the Republic of Gambia making available to the latter, a Line of Credit (LOC) of USD 10 million (USD ten million) for financing export of goods from India for financing construction of National Assembly Building Complex in the Republic of Gambia. The goods from India for exports under this Agreement are those 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 the Exim Bank under this Agreement. Out of the total Credit by Exim Bank under this Agreement, the goods and services of the value of at least 85 per cent of the contract price shall be supplied by the seller from India, and the remaining 15 percent goods and services (other than consultancy services) may be procured by the seller for the purpose of Eligible Contract from outside India. 2. The Credit Agreement under the LOC is effective from February 2, 2009 and date of execution of Agreement is August 8, 2008. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in case of project exports and 72 months (August 7, 2014) from the execution date of the Credit Agreement in case of supply contracts . 3. Shipments under the LOC 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 LOC. However, if required, the exporter may use his own resources or utilize balances of his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category - l (AD Category - l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for 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 or log on to www. eximbankindia. in. 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 are without prejudice to permissions / approvals, if any, required under any other law. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/395 · issued 26 Feb 2009. 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 handling export transactions under this LOC, Exporters seeking financing for projects in Gambia under this credit line, Exim Bank as the lending institution), your first concrete step on “Exim Bank's $10M Line of Credit to Gambia for National Assembly Building” is: “Inform exporter clients about the LOC and direct them to Exim Bank for full details.” (RBI issued this 26 Feb 2009).

Circular: RBI/2008-09/395 -- Exim Bank's $10M Line of Credit to Gambia for National Assembly Building
Issued: 26 Feb 2009
Action required: Inform exporter clients about the LOC and direct them to Exim Bank for full details.
Action required: Ensure shipments under this LOC are declared on GR/SDF forms as per RBI instructions.
Action required: Do not allow agency commission payments from LOC proceeds; permit only from exporter's own resources or EEFC after full payment realization.
Action required: Verify that at least 85% of contract price goods/services are from India for each eligible contract.
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=4852&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.