Quick answerRBI notifies AD banks of Exim Bank's USD 50 million line of credit to Chad for four projects: cotton yarn, steel billet, agricultural equipment, and bicycle plants. Shipments must use GR/SDF forms; no agency commission is payable under this credit.
What changed
Exim Bank has signed a credit agreement with the Government of Chad for a USD 50 million line of credit, effective September 27, 2005. The credit covers four specific projects: a cotton yarn plant (USD 24.5 million), a steel billet plant and rolling mill (USD 11.5 million), an agricultural equipment assembly plant (USD 10 million), and a bicycle plant (USD 4 million). Terminal utilization periods: 48 months from the completion date for project exports and 72 months from the date of execution of the Agreement (August 29, 2011) for other supply contracts.
What it means for you
Banks must ensure that all shipments under this credit are declared on GR/SDF forms as per existing instructions. No agency commission is payable under this line of credit, but if needed, exporters can use their own resources or EEFC balances for commission in free foreign exchange after full contract value realization. ADs must inform exporter constituents about this facility.
What you must do
Notify exporter customers about the USD 50 million line of credit to Chad and the four eligible projects.
Ensure all shipments under this credit are declared on GR/SDF forms as per RBI instructions.
Do not allow agency commission payments under this line of credit; if commission is required, ensure it is paid from exporter's own resources or EEFC account after full contract value realization.
Refer exporters to Exim Bank's office or website for full details of the line of credit.
Who it affects
Authorised Dealer banks handling foreign exchange, Exporters dealing with Chad under this line of credit, Exim Bank
Regulatory timeline
Stated effective dateeffective September 27, 2005
Decoded by BankPulse2026-06-19 19:43 IST
Status change: withdrawn09 Jul 2026, 04:04 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the total amount of the line of credit to Chad?
The line of credit is for an aggregate sum of USD 50 million, effective from September 27, 2005.
Which projects are covered under this line of credit?
Four projects: a cotton yarn plant (USD 24.5 million), a steel billet plant and rolling mill (USD 11.5 million), an agricultural equipment assembly plant (USD 10 million), and a bicycle plant (USD 4 million).
Can exporters pay agency commission under this line of credit?
No agency commission is payable under this line of credit. However, if required, exporters may use their own resources or EEFC balances for commission in free foreign exchange after full contract value realization.
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/191
A.P. (DIR Series) Circular No. 14
October 27, 2005
To
All Banks Authorised to Deal in Foreign Exchange
Madam/Sir,
Exim Bank's Line of Credit of USD 50 Million
to The Government of the Republic of Chad
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with the Government of the Republic of
Chad making available to the latter a Line of Credit (LOC) upto an aggregate
sum of USD 50 Million (US Dollar Fifty Million only). The credit agreement has
become effective on September 27, 2005. The credit is available for financing
equipment, goods and services eligible for being exported from India under the
Foreign Trade Policy of the Government of India for four projects in Chad viz.(a)
cotton yarn plant valued at USD 24.5 million (b) steel billet plant and rolling
mill valued at USD 11.5 million, (c) plant for assembly of agricultural equipment
valued at USD 10 million and (d) bicycle plant valued at USD 4 million. Full
details of the Line of Credit are available at the Exim Bank's office or its
website ( www.eximbankindia.com ).
2. The terminal utilization period will
expire at the end of 48 months from the completion date in case of project exports
and 72 months from the date of execution of the Agreement i.e. August 29, 2011
in case of other supply contracts.
3. Shipments under the credit will have
to be declared on GR / SDF Forms as per instructions issued from time to time.
4. No agency commission is payable under
the above line of credit. However, if required the exporter may use his own
resources or utilize balances of his EEFC account for payment of commission
in free foreign exchange. The ADs may allow such remittance after realisation
of full payment of contract value subject to compliance of prevailing instructions
on payment of agency commission.
5. Authorised Dealers may bring the contents
of this circular to the notice of their exporter constituents. Full details
of the Line of Credit are available at the Exim Bank's office or its website.
6. The directions contained in this circular
have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management
Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals,
if any, required under any other law.
Yours faithfully,
B. P. Kanungo
General Manager- in - Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/191 · issued 27 Oct 2005. The plain-English explanation above is BankPulse’s own independent summary.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI notifies AD banks of Exim Bank's USD 50 million line of credit to Chad for four projects: cotton yarn, steel billet, agricultural equipment, and bicycle plants. Shipments must use GR/SDF forms; no agency commission is payable under this credit.
Q2. Who does this circular apply to?
Authorised Dealer banks handling foreign exchange, Exporters dealing with Chad under this line of credit, Exim Bank
Q3. What is the first thing you should do about it?
Notify exporter customers about the USD 50 million line of credit to Chad and the four eligible projects.
Notify exporter customers about the USD 50 million line of credit to Chad and the four eligible projects.
Ensure all shipments under this credit are declared on GR/SDF forms as per RBI instructions.
Do not allow agency commission payments under this line of credit; if commission is required, ensure it is paid from exporter's own resources or EEFC account after full contract value realization.
Refer exporters to Exim Bank's office or website for full details of the line of credit.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Authorised Dealer banks handling foreign exchange, Exporters dealing with Chad under this line of credit, Exim Bank), your first concrete step on “Exim Bank's USD 50 Million Line of Credit to Chad” is: “Notify exporter customers about the USD 50 million line of credit to Chad and the four eligible projects.” (RBI issued this 27 Oct 2005).
Circular: RBI/2005-06/191 -- Exim Bank's USD 50 Million Line of Credit to Chad
Issued: 27 Oct 2005
Action required: Notify exporter customers about the USD 50 million line of credit to Chad and the four eligible projects.
Action required: Ensure all shipments under this credit are declared on GR/SDF forms as per RBI instructions.
Action required: Do not allow agency commission payments under this line of credit; if commission is required, ensure it is paid from exporter's own resources or EEFC account after full contract value realization.
Action required: Refer exporters to Exim Bank's office or website for full details of the line of credit.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · AI fact-check pending · under the editorial review of our expert review panel · decoded & published by BankPulse · 21 Jun 2026, 07:50 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2543&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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