“Gujarat International Finance Tec-City (GIFT City) is emerging as a crucial global finance hub, attracting various financial and technology firms with its unique blend of regulatory advantages, tax...
Published On: 01/03/2018
Practice Area: Banking & Finance, Corporate & Commercial, Government & Regulatory
Authors:
Ran Chakrabarti
Chitvan Bakshi
In an attempt to promote investment activities and to liberalize the procedures relating to trade credits for imports, the Reserve Bank of India (the "RBI") in 2004, had granted permission to authorized dealer banks ("ADs") to issue letters of undertaking ("LoUs") or letters of comfort ("LoCs") in favour of overseas suppliers, banks and financial institutions, to approve trade credits, for import of all non-capital goods (except gold) and capital goods permissible under the Foreign Trade Policy, subject to prudential guidelines issued by the RBI from time to time.
