The RBI, on 2nd August, 2022, issued Master Direction on External Commercial Borrowings, Trade Credits and Structured Obligations, to all authorized dealer category-I banks and authorized banks. It compiles all instructions issued in this matter superseding the earlier Master Direction on External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by authorized Dealers and Persons other than authorized Dealers, dated 1st January, 2016.
This Master Direction has been issued to lay down the modalities as to how the foreign exchange business has to be conducted by Authorized Persons [under the Foreign Exchange Management Act (FEMA), 1999], with their customers/constituents to implement the regulations framed thereunder.
