Article archive
Borrowing/ Lending in Foreign Currencies by Banks
19/12/2009 00:13
Lending :
For day-to-day working, deposits are accepted as per the availability of surpluses or requirement for funding of Nostro accounts, subject to counter party exposure limits approved for each bank.
Each bank maintain a borrowing limit, which is utilized for arranging funds for...
Crystallization of Foreign Currency Liability by Authorised Dealers
18/12/2009 23:59
For Bills drawn under Import Letter of Credit -
If drawn on Sight, issuing bank can hold maximum 10 days after receipt of documents in Foreign...
Realization of Export Goods
18/12/2009 23:53
Maximum time for realization of export goods is 6 months from date of shipment.
For Status House like Export House, Trading House, it is 12 months.
If bill is not realized with in time, exporters apply to Authorised Dealer for extension of time limit in ETX form.
Overdue...
Post-shipment Export Credit in Foreign Currency
18/12/2009 23:49
Post-shipment Export Credit in Foreign Currency: EBR
Rediscounting of Export Bills Abroad scheme (EBR) –
Banks usually arrange a “Bankers Acceptance Facility (BAF)” for rediscounting the export bills without any market and duly covered by collateralized documents. Each bank can have its...
Post-shipment Credit in Foreign Currency
18/12/2009 23:44
Post-shipment Credit in Foreign Currency (PCFC):
It is available for a maximum period of 360 days.
It is utilized for domestic inputs or for imports.
In case of domestic inputs, Foreign Currency loan is converted to Rupees, while for import the amount is directly remitted...
Post shipment advance (Rupees)
18/12/2009 23:37
Post shipment advance (Rupees) can mainly be Export bills Purchased / Discounted / Negotiated, Advances against bills for Collection & Advances against Duty Drawback Receivable from Govt. It is to be liquidated by proceeds of export bills received from abroad or out of balances in EEFC...
Pre-Shipment Finance
18/12/2009 23:34
Packing Credit Limit (PCL) is for all cost prior to shipment of finished goods including packing, local transportation, labour charges etc.
The exporter or borrower must have an export order and should have an IEC Code.
His name should not in Caution List of RBI and not is under...
Export Finance
18/12/2009 23:30
It can be Rupee or Foreign Currency denominated.
The sanction of fresh or enhanced export credit limits should be made within 45 days from date of receipt of credit limit application.
In case of renewal of limits, time taken should not exceed 30 days and for sanction of adhoc credit...
Foreign Currency Accounts: Deposits
18/12/2009 23:27
Overseas Foreign Currency A/c –
RBI permits exporters to open foreign currency a/c in foreign countries to hold export proceeds for making payment for goods imported.
Diamond Dollar A/c...
Import
18/12/2009 23:23
Remittance is to be made against import within maximum 6 months from date of shipment and for Trade Credits within 3 years.
Authorised Dealer(AD) may remit Interest on import bills either on Sight basis or on Usance period, and also Advance payment against import of...
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