Regulation 6 - Other borrowings in foreign exchange under Automatic Routde or with prior approval of Reserve Bank of India under the Approval Route or as Trade Credit - Foreign Exchange Management (Borrowing or Lending In Foreign Exchange ) Regulations, 2000

1 6. Other borrowings in foreign exchange under Automatic Route or with prior approval of Reserve Bank of India under the Approval Route or as Trade Credit- (1) A person resident in India, other than a branch or office in India owned or controlled by a person resident outside India, may raise in accordance with the provisions of the Automatic Route Scheme specified in Schedule I, foreign currency loans of the nature or for the purposes specified in the Schedule provided that this shall be deemed to have come into force with effect from February 1, 2004 except in relation to item 1(iv)(A)(c) of Schedule I which shall be deemed to have come into force with effect from February 23, 2004. (2) A person resident in India who desires to raise foreign currency loans of the nature or for the purposes as specified in Schedule II and who satisfies the eligibility and other conditions specified in that Schedule, may apply to the Reserve Bank for prior approval to raise such loans; provided that this shall be deemed to have come into force with force with effect from February 23, 2004. (3) Trade Credit not exceeding USD 20 million per import transaction shall be raised by borrowings subject to the terms specified in Schedule III hereto; provided that this shall be deemed to have come into force with effect from April 17, 2004. 2 (4)Where prior approval is required the Reserve Bank may grant its approval subject to such terms and conditions as it may consider necessary; Provided that while considering the grant of approval, the Reserve Bank shall take into account the overall limit stipulated by it, in consultation with the Central Government, for availment of such loans by the persons resident in India. 3 (5) The Reserve Bank may grant its approval to any other foreign currency loan proposed to be raised by a person resident in India, which falls outside the scope of Schedules I, II and III, subject to such terms and conditions as it may consider necessary. ************************** Note : 1 Has been substituted vide Notification No. 126/2004 dated 13/12/2004 , before it was read as, "6. Other borrowings in foreign exchange with prior approval of Reserve Bank or Government of India:- (1) A person resident in India who desires to raise foreign currency loans of the nature or for the purposes specified in the Schedule and who satisfies the eligibility and other conditions specified in that Schedule, may apply to the Reserve Bank for approval to raise such loans." 2. Sub-regulation (2) has been renumbered as (4) and the words "Where prior approval is required" has been added in the beginning vide Notification No. Supra 3. Has been substituted vide Notification No. Supra and sub-regulation (3) has been renumbered as sub-regulation (5), before it was read as, "(3) Any other foreign currency loan proposed to be raised by a person resident in India, which falls outside the scope of the Schedule, shall require the prior approval of the Central Government."