Trade Credit All-in-Cost Ceiling Extended Till March 2013
Current · Source: Reserve Bank of India · RBI/2012-13/336 · issued 14 Dec 2012 · ~1 min read
Quick answerRBI has extended the existing all-in-cost ceiling for trade credits on imports until March 31, 2013. No other changes to trade credit policy have been made. Banks must inform customers and ensure compliance with FEMA provisions.
The rule, in the simplest words
The cost limit (all-in-cost ceiling) for trade credits (loans for imports) stays the same until March 31, 2013.
No other rules about trade credits have changed.
Banks must tell their customers about this extension.
Banks must follow FEMA (India's foreign exchange law) rules for these loans.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, is processing a trade credit for a jewelry importer. She checks the latest RBI circular and confirms the all-in-cost ceiling remains unchanged until March 31, 2013. She updates her customer that the interest rate on their import loan will stay within the same limit, giving them short-term cost stability for their next shipment.
What changed
The all-in-cost ceiling for trade credits into India, previously set via circulars from November 2011 and March 2012, will remain in force until March 31, 2013. The ceiling is subject to review after that date. All other trade credit policy terms stay unchanged.
What it means for you
Banks and importers can continue using the same cost limits for trade credits without any immediate revision. This provides short-term stability for import financing costs. Lenders should note that the ceiling may be reviewed after March 2013, so they must stay alert for future changes.
What you must do
Inform all constituents and customers about the extended all-in-cost ceiling validity.
Continue applying the existing all-in-cost ceiling as per earlier circulars until March 31, 2013.
Monitor RBI announcements for any review or revision after the deadline.
Ensure compliance with FEMA sections 10(4) and 11(1) for all trade credit transactions.
Who it affects
Category-I Authorised Dealer Banks, Importers using trade credits, Corporate customers involved in import financing
❓ Common questions
What is the new all-in-cost ceiling for trade credits?
The circular does not specify a new ceiling; it extends the existing ceiling from earlier circulars until March 31, 2013.
When will the ceiling be reviewed?
The ceiling will be reviewed after March 31, 2013, as per the circular.
Are there any other changes to trade credit policy?
No, all other aspects of trade credit policy remain unchanged.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/336
A.P. (DIR Series) Circular No. 58
December 14, 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. 44 dated November 15, 2011 , A.P. (DIR Series) Circular No. 100 March 30, 2012 relating to the all-in-cost ceiling of Trade Credits for imports into India.
2. It has been decided that the all-in-cost ceiling as specified in A.P. (DIR Series) Circular No. 44 dated November 15, 2011 will continue to be applicable till March 31, 2013 and subject to review thereafter. All other aspects of Trade Credit policy remain unchanged.
3. The amended ECB policy will come into force with immediate effect and is subject to review based on the experience gained in this regard.
4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
5. 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/2012-13/336 · issued 14 Dec 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 (Category-I Authorised Dealer Banks, Importers using trade credits, Corporate customers involved in import financing), your first concrete step on “Trade Credit All-in-Cost Ceiling Extended Till March 2013” is: “Inform all constituents and customers about the extended all-in-cost ceiling validity.” (RBI issued this 14 Dec 2012).
Circular: RBI/2012-13/336 -- Trade Credit All-in-Cost Ceiling Extended Till March 2013
Issued: 14 Dec 2012
Action required: Inform all constituents and customers about the extended all-in-cost ceiling validity.
Action required: Continue applying the existing all-in-cost ceiling as per earlier circulars until March 31, 2013.
Action required: Monitor RBI announcements for any review or revision after the deadline.
Action required: Ensure compliance with FEMA sections 10(4) and 11(1) for all trade credit transactions.
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
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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=7754&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.
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