Current · Source: Reserve Bank of India · RBI/2012-13/239 · issued 09 Oct 2012 · ~1 min read
Quick answerRBI has confirmed that the all-in-cost ceiling for trade credits financing imports into India remains unchanged from the rate set in September 2012. No new ceiling has been introduced; the existing cap continues until further notice.
The rule, in the simplest words
The maximum total cost banks can charge for import loans (all-in-cost ceiling) stays the same as the one set in the September 11, 2012 circular.
All Category‑I Authorised Dealer Banks (banks approved to handle foreign‑exchange trade) must keep using that same ceiling for every trade credit they give for imports.
No other rules changed, so banks should tell their customers the ceiling is unchanged and watch for any new RBI notices in the future.
How it plays out — a real example
Rohit, a trade‑finance officer in Mumbai, looks up the 2012 ceiling before approving a loan for a textile importer. He confirms the cost will not exceed the allowed limit, informs the importer that the rate is unchanged, and notes to check future RBI circulars for any updates.
What changed
RBI reviewed the all-in-cost ceiling for trade credits for imports and decided to keep it unchanged. The ceiling specified in the earlier circular (A.P. DIR Series Circular No. 28 dated September 11, 2012) remains applicable. No other aspects of the trade credit policy were modified.
What it means for you
Banks and importers can continue using the same cost ceiling for trade credits without any adjustment. This provides stability for pricing and planning of import financing. Lenders should ensure compliance with the existing ceiling and not assume any relaxation.
What you must do
Continue applying the all-in-cost ceiling as per A.P. DIR Series Circular No. 28 dated September 11, 2012 for all trade credits for imports.
Inform your customers and constituents that the ceiling remains unchanged until further review.
Monitor any future RBI circulars for potential revisions to the ceiling.
Who it affects
All Category-I Authorised Dealer Banks, Importers using trade credits for imports into India, Branches handling trade finance operations
❓ Common questions
What is the all-in-cost ceiling for trade credits for imports?
The circular does not specify the exact rate; it only states that the ceiling from the September 11, 2012 circular continues to apply. Banks should refer to that earlier circular for the specific ceiling.
Does this circular change any other trade credit rules?
No. All other aspects of the trade credit policy remain unchanged as per the circular.
When will the ceiling be reviewed again?
The circular does not provide a date for the next review. It says the ceiling will apply 'until further review'.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/239
A.P. (DIR Series) Circular No. 39
October 09, 2012
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Trade Credits for Imports into India – Review of all-in-cost ceiling
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 100 dated March 30, 2012 and A. P. (DIR Series) Circular No. 28 dated September 11, 2012 relating to trade credits for imports into India.
2. It has been decided that the all-in-cost ceiling as specified under paragraph 4 of A.P. (DIR Series) Circular No. 28 dated September 11, 2012 will continue to be applicable for trade credits for imports into India until further review.
3. All other aspects of Trade Credit policy remain unchanged and AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers.
4. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Rashmi Fauzdar)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/239 · issued 09 Oct 2012. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All Category-I Authorised Dealer Banks, Importers using trade credits for imports into India, Branches handling trade finance operations), your first concrete step on “Trade Credit Cost Ceiling for Imports Unchanged” is: “Continue applying the all-in-cost ceiling as per A.P. DIR Series Circular No. 28 dated September 11, 2012 for all trade credits for imports.” (RBI issued this 09 Oct 2012).
Circular: RBI/2012-13/239 -- Trade Credit Cost Ceiling for Imports Unchanged
Issued: 09 Oct 2012
Action required: Continue applying the all-in-cost ceiling as per A.P. DIR Series Circular No. 28 dated September 11, 2012 for all trade credits for imports.
Action required: Inform your customers and constituents that the ceiling remains unchanged until further review.
Action required: Monitor any future RBI circulars for potential revisions to the ceiling.
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 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=7610&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.