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Category Archives: Foreign Exchange

  • Gold import rules in India

    Gold import rules in India

    The notified entities in India are permitted to import of Gold only after the issue of license by DGFT. The imported gold covered by the above license shall be disposed-off in the manner specified by the DGFT. The conditions for the licence are clearly mentioned in the licence itself.…

  • What is negative statement of export bills?

    What is negative statement of export bills?

    Where exports made under the Duty Drawback Scheme and such bill remain outstanding beyond the prescribed time limit, the exporter needs to submit a negative statement/certificate to the nodal officer of Department of Excise and Customs on a 6 monthly basis. The negative statement /certificate will be issued either…

  • What is the role of EXIM Bank?

    What is the role of EXIM Bank?

    EXIM bank of India was established by Government of India in 1982 under the Export-Import Bank of India Act, 1981 for the purpose of financing, facilitating and promoting India’s international trade. The bank conducts export market studies and assists Indian Joint ventures in third countries. The bank offers international…

  • What is the role of FEDAI ?

    What is the role of FEDAI ?

    The banks which are officially authorized by RBI to deal in foreign exchange transactions are called ‘Authorised Dealers’ (ADs).Foreign Exchange Dealers Association of India (FEDAI) is an association of ‘Authorised Dealers’ set up in 1958 under sec 25 of companies’ act 1956. As per RBI guidelines, it is obligatory…

  • Important FEDAI Rules:

    Important FEDAI Rules:

    FEDAI prescribes rules regarding trading hours, Exchange rate, Crystallization, of foreign currency, extension/cancellation of contracts etc. The FEDAI rules govern all Authorised Dealers of foreign exchange in India. Some of the important rules of FEDAI are as under. Trading Hours of Authorised Dealers (Rule 1): Exchange trading hours for…

  • Eligibility norms for bank finance to exporters

    Banks extend export credits to exporters of goods and services, where the loans are released for procuring, Packing processing (where necessary), manufacturing and finally for packing of goods. The credit facility is also available to service providers for the working capital requirement like the purchase of consumables, wages, and…

  • Export credit facility for service exporters

    The Exporters of services may seek finances from banks for their requirements to buy consumables, supplies, and wages. Such exporters shall register with the Electronic and software Export Promotion Council or Services Export Promotion Council or with Federation of Indian Export Organizations, as applicable to their unit to be…

  • Packing Credit- Running Account

    Packing Credit- Running Account

    In the cases of commodity exports, the exporters have to procure raw material, manufacture the export product and keep the same ready for shipment, in anticipation of export orders from the overseas buyers. This is in view of, seasonal availability of raw materials or when the time taken for…

  • Crystallisation of import bills under LC

    Crystallisation of import bills under LC

    The process of converting foreign currency liability of the importer into Indian Rupee liability is called crystallization of import LC bills. The idea behind crystallization of import bills is to transfer the probable exchange risk of non-retired bill amount in foreign currency to the importer. An LC can be…

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