Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2013 - 270/2013-RB - Foreign Exchange Management

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION No. FEMA 270/2013-RB Mumbai, the 19 th March, 2013 Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2013 G.S.R. 384(E) - In exercise of the powers conferred by clause (d) of sub-section (3) of section 6 , and sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) , the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 ( Notification No. FEMA. 3/2000-RB dated May 3, 2000 ), namely:- 1. Short title and commencement: (a) These Regulations may be called the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2013. (b) They shall be deemed to have come into force from the dates specified in these regulations. @ Amendment of the Regulations : 2. In the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 ( Notification No. FEMA. 3/2000-RB dated May 3, 2000 ) (hereinafter referred to as 'the principal regulations') (A) In Schedule II, (i) In paragraph (3), after sub-paragraph (xiii), the following shall be inserted and shall be deemed to have been inserted with effect from 20th day of April, 2012, namely:- "(xiv) Rescheduling of an existing Foreign Currency Borrowing "Rescheduling of outstanding amounts of loans raised in foreign exchange in accordance with the Act or the Rules and Regulations made thereunder, may be made in accordance with this Schedule at a higher cost of borrowing within the all-in-cost ceiling prescribed by the Reserve Bank, under sub-paragraph (v), from time to time." (ii) In paragraph (4), for sub-paragraph (i), the following shall be substituted and shall be deemed to have been substituted with effect from 20th day of April, 2012, namely, "Refinancing of outstanding amounts of loans raised in foreign exchange in accordance with the Act or the Rules and Regulations made thereunder, may be made by making fresh borrowing in foreign exchange in accordance with this Schedule at a higher cost of borrowing within the all-in-cost ceiling prescribed by the Reserve Bank from time to time, under sub-paragraph (v) of paragraph (3) and the outstanding maturity of the original borrowing is not reduced." (B) in Schedule III, (i) For paragraph (1), the following shall be substituted and shall be deemed to have been substituted with effect from 11th day of September, 2012, namely, (1) Foreign currency credit/loan extended for imports into India by the overseas supplier, bank and financial institution, is hereinafter referred to as 'Trade Credit' - (a) for original maturity of up to five years, subject to the terms and conditions as may be stipulated by the Reserve Bank from time to time, in respect of a company resident in India engaged exclusively in the development of infrastructure; (b) for original maturity of less than three years in respect of other resident entities. Depending upon the source of finance, such trade credit includes suppliers' credit or buyers' credit. Explanation : For the purpose of this regulation, infrastructure' means infrastructure as defined under the External Commercial Borrowing (ECB) policy from time to time. (ii) For paragraph (2), the following shall be substituted and shall be deemed to have been substituted with effect from 11 th day of September, 2012, namely, "Authorised Dealers (ADs) in foreign exchange are permitted to approve trade credits up to USD 20 million per import transaction for import of all items permissible under the Foreign Trade Policy (except Gold) with a maturity period (from the date of shipment) up to one year. For import of capital goods, ADs are permitted to approve trade credits up to USD 20 million per import transaction with a maturity period of more than one year and up to five years in respect of a company resident in India engaged exclusively in the development of infrastructure and less than three years in respect of other resident entities. No roll-over / extension will be permitted by the AD beyond the permissible period." [ No. FEMA 270/2013-RB] RUDRA NARAYAN KAR Chief General Manager Incharge Foot Note : 1. @ It is clarified that no person will be adversely affected as a result of retrospective effect being given to these regulation. 2. The Principal Regulations were published in the Official Gazette vide No. G.S.R. No. 386 (E) dated May 5, 2000 in Part II Section 3, sub-section (i) and subsequently amended vide : i. No. G.S.R. 674 (E) dated August 25, 2000 ii No. G.S.R. 476 (E) dated July 8, 2002 iii. No. G.S.R. 854 (E) dated December 31, 2002 iv. No. G.S.R. 531 (E) dated July 9, 2003 v. No. G.S.R. 533 (E) dated July 9, 2003 vi. No. G.S.R. 208 (E) dated March 23, 2004 vii. No. G.S.R. 825 (E) dated December 22, 2004 viii. No. G.S.R. 60 (E) dated February 9, 2005 ix. No. G.S.R. 739 (E) dated December 22, 2005 x. No. G.S.R. 663 (E) dated October 16, 2007 xi. No. G.S.R. 61 (E) dated January 30, 2009 xii. No. G.S.R. 547 (E) dated July 27, 2009 xiii. No. G.S.R. 836 (E) dated November 23, 2009 xiv. No. G.S.R. 610 (E) dated August 03, 2012 xv. No. G.S.R. 832 (E) dated November 17, 2012 xvi. No. G.S.R. 886 (E) dated December 11, 2012 xvii. No. G.S.R. 916 (E) dated December 21, 2012 xviii. No. G.S.R. 125 (E) dated February 26, 2013