Current · Source: Reserve Bank of India · RBI/2012-13/475 · issued 09 Apr 2013 · ~1 min read
Quick answerRBI has extended the existing all-in-cost ceiling for trade credits for imports until June 30, 2013. No other changes to trade credit policy have been made. Banks must inform customers.
The rule, in the simplest words
The RBI (India's central bank) says the highest allowed cost for trade credits (loans to pay for imports) will stay the same until June 30, 2013.
No other rules about trade credits (loans for buying goods from other countries) are changed.
Banks must tell their customers (importers) about this extension.
After June 30, 2013, the RBI may change the cost ceiling (the maximum interest and fees allowed).
How it plays out — a real example
A forex & trade-finance officer in Mumbai, Priya, is processing a trade credit for a jewelry importer. She checks the latest RBI circular and sees the all-in-cost ceiling (the total interest and fees) is extended until June 30, 2013. She tells the importer, 'Good news – the cost limit stays the same for now, so your loan terms won't change. But keep an eye out after June, as the RBI might review it.'
What changed
The all-in-cost ceiling for trade credits for imports, previously set in September 2012, will continue unchanged until June 30, 2013. After that date, the ceiling will be reviewed again. All other trade credit rules remain the same.
What it means for you
Banks and importers can continue using the same cost limits for trade credits without any immediate adjustment. This provides short-term stability for financing imports, but lenders should prepare for a possible revision after June 30. No new compliance or reporting requirements are introduced.
What you must do
Inform your constituents and customers about the extended all-in-cost ceiling validity.
Continue applying the existing all-in-cost ceiling as per earlier circulars until June 30, 2013.
Monitor RBI announcements for any post-June 2013 review outcomes.
Who it affects
AD Category-I banks, Importers using trade credits, Trade finance departments
❓ Common questions
What is the all-in-cost ceiling for trade credits?
The ceiling is the maximum total cost (including interest and fees) allowed for trade credits for imports, as specified in earlier RBI circulars. This circular extends that ceiling unchanged until June 30, 2013.
Do I need to submit any new reports to RBI?
No. This circular only extends the existing ceiling; no new reporting or documentation requirements are introduced.
What happens after June 30, 2013?
RBI will review the all-in-cost ceiling after June 30, 2013. Banks should watch for further circulars on any changes.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/475
A.P. (DIR Series) Circular No. 98
April 9, 2013
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.28 dated September 11, 2012 and A.P. (DIR Series), Circular No. 58 dated December 14, 2012 relating to all-in-cost ceiling of Trade Credits for imports into India.
2. On a review, 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 till June 30, 2013 and subject to review thereafter. All other aspects of Trade Credit policy remain unchanged.
3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
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,
(Rudra Narayan Kar)
Chief General Manager - in Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/475 · issued 09 Apr 2013. 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 (AD Category-I banks, Importers using trade credits, Trade finance departments), your first concrete step on “Trade Credit Cost Ceiling Extended Till June 2013” is: “Inform your constituents and customers about the extended all-in-cost ceiling validity.” (RBI issued this 09 Apr 2013).
Circular: RBI/2012-13/475 -- Trade Credit Cost Ceiling Extended Till June 2013
Issued: 09 Apr 2013
Action required: Inform your 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 June 30, 2013.
Action required: Monitor RBI announcements for any post-June 2013 review outcomes.
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=7937&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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