FEMA - Trade Credits for Imports into India - Review of all-in-cost ceiling
RBI has decided that the all-in-cost ceiling as specified in A.P. (DIR Series) Circular No. 44 dated November 15, 2011 will continue to be applicable till March 31, 2013 and subject to review thereafter.
By the above Circular RBI had fixed All-in-cost over 6 month LIBOR at 350bps.
LIBOR = London Interbank Offered Rate is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association.
We have a similar MIBOR - Mumbai Interbank Offered Rate which is the interest rate at which banks can borrow funds, in marketable size, from other banks in the Indian interbank market. The Mumbai Interbank Offered Rate (MIBOR) is calculated everyday by the National Stock Exchange of India.
AP (DIR SERIES) Circular No. 58/RBI., Dated: December 14, 2012