Reserve Bank of India issued a notification on May 16, 2025, regarding a Government of India-supported Line of Credit (LoC) extended by the Export-Import Bank of India (Exim Bank) to the Government of Mongolia. The LoC, amounting to USD 700 million, is designated for financing the construction of a crude oil refinery plant in Mongolia. The agreement was signed on January 16, 2025, and became effective on May 6, 2025. The LoC facilitates the export of eligible Indian goods and services in alignment with the Foreign Trade Policy of India, subject to approval by Exim Bank. The disbursement period is up to 48 months following the scheduled completion date of the related contract. Exporters must declare shipments under the LoC in accordance with existing RBI procedures and are not entitled to agency commission payments from the LoC funds. However, commissions can be paid using the exporter’s own funds or foreign currency accounts, provided compliance with the relevant regulations. Authorised Dealer Category-I banks have been instructed to inform their exporter clients of the LoC’s availability and to direct them to Exim Bank for further details. These directives are issued under the Foreign Exchange Management Act (FEMA), 1999, and are applicable alongside any other legal requirements.
Reserve Bank of India
India’s Central Bank
Notifications
Exim Bank’s GOI-supported Line of Credit (LOC) for USD 700 million to the Govt. of Mongolia (GO-MNG), for financing construction of Crude Oil Refinery Plant in Mongolia
RBI/2025-2026/37
A.P. (DIR Series) Circular No. 05/2025-26
May 16, 2025
All Category – I Authorised Dealer Banks
Madam/Sir
Exim Bank’s GOI-supported Line of Credit (LOC) for USD 700 million
to the Govt. of Mongolia (GO-MNG), for financing construction of
Crude Oil Refinery Plant in Mongolia
Export-Import Bank of India (Exim Bank) has entered into an agreement dated January 16, 2025, with the Government of Mongolia (GO-MNG), for making available to the latter, Government of India supported Line of Credit (LoC) of USD 700 Mn(USD Seven Hundred Million only) for financing construction of Crude Oil Refinery Plant in Mongolia.
2. The export of eligible goods and services from India, as defined under the agreement, would be allowed, subject to their eligibility under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement.
3. The Agreement under the LoC is effective from May 06, 2025. Under the LoC, the last date for disbursement will be 48 months after scheduled completion date of the contract.
4. Shipments under the LoC shall be declared in Export Declaration Form/Shipping Bill as per instructions issued by the Reserve Bank from time to time.
5. No agency commission is payable for export under the above LoC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in any foreign currency. Authorised Dealer (AD) Category-I banks may allow such remittance after realization of full eligible value of export, subject to compliance with the extant instructions for payment of agency commission.
6. AD Category – I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain complete details of the LoC from the
Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or from their website www.eximbankindia.in.
7. The directions contained in this circular have been issued under section 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law.
Yours faithfully
(N Senthil Kumar)
Chief General Manager
