September 28, 2021<\/p>\n
To<\/p>\n
All Category-I Authorised Dealer Banks<\/p>\n
<\/p>\n
Attention of Authorised Dealer Category\u2013 I banks (AD banks) is invited to extant Regulation 15 of Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 notified vide FEMA 23(R)\/2015-RB dated January 12, 2016 and various directions issued to AD banks from time to time prescribing LIBOR linked interest payable in respect of export\/import transactions.<\/p>\n
2. In view of the impending cessation of LIBOR as a benchmark rate, it has been decided to permit AD banks to use any other widely accepted\/Alternative reference rate in the currency concerned for such transactions. All other instructions in this regard shall remain unchanged. The necessary enabling amendment to FEMA 23(R)\/2015-RB has since been notified vide Notification No. FEMA 23(R)\/(5)\/2021-RB dated September 08, 2021 (copy enclosed).<\/p>\n
3. AD banks may bring the contents of this circular to the notice of their constituents concerned.<\/p>\n
4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions \/ approvals, if any, required under any other law.<\/p>\n
Yours faithfully,
\n(R. S. Amar)
\nChief General Manager<\/p>\n