Head /Principal Offices of all
Authorized Dealers in Foreign Exchange
Sirs / Madam,
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.