Export-Import Bank's $180M Credit Line for Offshore Patrol Vessels Must Follow FEMA 10(4) and 11(1) Guidelines

Exim Bank established a USD 180 million Line of Credit (LoC) agreement with GO-VNM for financing 4 Offshore Patrol Vessels procurement. The LoC, effective January 20, 2025, operates under GOI support with a 60-month post-project completion disbursement window. Exports must comply with India's Foreign Trade Policy and RBI regulations. Agency commission payments are prohibited under the LoC but may be processed through exporters' EEFC accounts post-realization of full export value. The directive, issued under FEMA sections 10(4) and 11(1), mandates AD Cat-I banks to facilitate eligible transactions within the prescribed framework while ensuring adherence to foreign exchange management protocols. .....

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