The Head /Principal Offices of all

Authorized Dealers in Foreign Exchange

Dear Sirs / Madam,

Trade Loans against FE-25 Deposits

With a view to facilitate genuine export transactions, it has been decided that the instructions contained in Para (ii) of FE Circular No. 16 dated November 1, 2004 may further be relaxed. Accordingly, in case, maturity of a pre-shipment export loan under FE-25 deposits falls prior to the date of realization of export proceeds, exporters have the option to convert the pre-shipment loan into post-shipment loan, provided the maximum period of the loan (both pre-shipment & post-shipment) does not exceed 270 days.

Please bring this to the notice of all your constituents.