Post-shipment Credit in Foreign Currency
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 to overseas supplier.
Foreign Currency available with bank in EEFC, RFC & FCNR-B accounts could be utilized by bank for financing PCFC.
The lending rate should not exceed 1% over LIBOR/EURO LIBOR/EURIBOR.
Up to 180 days, Intt rate should not exceed 1% over LIBOR and thereafter up to 360 days, extra 2%.
It is liquidated by discounting the Foreign Currency bill under EBR scheme. Banks will not eligible for any refinance from RBI for PCFC.