The Reserve Bank of India issued a circular to Category I Authorised Dealer banks on processing exports under Export-Import Bank of India’s Government of India-supported USD 700 million line of credit to the Government of Mongolia to finance construction of a crude oil refinery plant in Mongolia. The circular confirms that exports of eligible Indian goods and services under the agreement may be financed under the line of credit, subject to eligibility under India’s Foreign Trade Policy. The line of credit agreement was signed on January 16, 2025 and is effective from May 6, 2025, with the last date for disbursement set at 48 months after the scheduled completion date of the contract. Shipments must be declared in the Export Declaration Form or Shipping Bill in line with RBI instructions. No agency commission is payable for exports under the line of credit, although exporters may use their own resources or balances in Exchange Earners’ Foreign Currency accounts to pay commission, and AD Category I banks may permit such remittances after full realisation of the eligible export value, subject to existing rules. AD Category I banks are asked to bring the circular to the attention of their exporter customers and direct them to Exim Bank for the detailed terms of the line of credit.
Reserve Bank of India 2025-05-16
Reserve Bank of India issues authorised dealer instructions for Exim Bank USD 700 million Government of Mongolia line of credit for crude oil refinery project
The Reserve Bank of India issued a circular to Category I Authorised Dealer banks regarding the USD 700 million line of credit from Export-Import Bank of India to finance a crude oil refinery in Mongolia. The circular outlines eligibility for financing exports of Indian goods and services under the agreement, subject to India's Foreign Trade Policy. Banks are instructed to inform exporters and direct them to Exim Bank for detailed terms.