All Authorized Dealers
in Foreign Exchange,

Dear Sirs,

Please refer to para 28 - Chapter XIII of the Foreign Exchange Manual (7th Edition, 1992 - as amended upto 30th September, 1994) in terms of which Authorized Dealers are permitted to register contracts / purchase orders / performa invoices / indents etc. for imports. This facility is hereby withdrawn. Authorised Dealers will no longer register contracts etc. Remittances against the contracts etc. registered earlier would however be permissible under the existing rules.

2. Attention of the Authorized Dealers is also invited to para 20(ii) ibid in terms of which premature payment of the usance import bill can be made after deducting from the Bill amount, interest at the rate of 1.5% p.a. over LIBOR for the respective currency / respective tenure or the built-in interest in the invoice, if available, whichever is more for the number of days intervening between the date of remittance and the date of the maturity of the bill. This facility of premature payment of usance bill is also hereby withdrawn.

3. Please bring the above changes to the notice of your constituent.