Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreBCAJ Brieficles are short-format, web-only articles on contemporary topics of professional importance that are open-for-all to read & share.
Explore BrieficlesExplore past issues of BCA Journal & indulge in a treasure trove of high-quality professional content across format of print, videos & learning events from the BCAS stable.
Learn MoreMonthly mouth-piece of BCAS, the BCA Journal is a leading publication that has been in continuous circulation for more than 53 years. Over the years the BCAJ has become synonymous with high-quality & authentic content across fields of finance, accounting, tax & regulatory matters. The BCAJ has wide circulation across India & commands huge respect amongst the Chartered Accountants` community.
Learn MoreFor queries, collaborations, and insights to forge, Drop a line, share thoughts, inquiries galore, At BCAJ, your messages, we eagerly explore.
Learn MoreTrade Credit Policy – Rupee (INR ) Denominated trade credit
This circular permits Indian importers to enter into loan agreements with overseas lenders to avail trade credit in Rupees (INR) based on the guidelines mentioned below: –
i. Trade credit can be raised for import of all items (except gold) permissible under the extant Foreign Trade Policy.
ii. Trade credit period for import of non-capital goods can be up to one year from the date of shipment or up to the operating cycle, whichever is lower.
iii. Trade credit period for import of capital goods can be up to five years from the date of shipment.
iv. Banks cannot permit roll-over/extension beyond the permissible period.
v. Banks can permit trade credit up to US $ 20 million or its equivalent per import transaction.
vi. Banks can give guarantee, Letter of Undertaking or Letter of Comfort in respect of trade credit for a maximum period of three years from the date of the shipment.
vii. The all-in-cost of such Rupee (INR) denominated trade credit must be commensurate with prevailing market conditions.
viii. All other guidelines for trade credit will be applicable for such Rupee (INR) denominated trade credits.
Overseas lenders can hedge their exposure in Rupees through permitted derivative products in the on-shore market with a bank in India.