What is correspondent banking?

Generally, correspondent banking arrangement involves two banks establishing reciprocal accounts with each other through bilateral agreements. These accounts are established to enable the domestic bank to make payments or money transfers on behalf of the foreign bank. The most common services provided by correspondent banks are currency exchange, wire transfer, handling business transactions and trade…

Latest guidelines on Buyers credit/supplier credit under Trade credit guidelines

Trade Credit (Buyers credit/supplier credit) can be raised by Indian importers in any freely convertible foreign currency (FCY denominated TC) or Indian Rupee (INR denominated TC), as per the framework. Buyers’ credit finance means finance for payment of imports in India arranged by the importer (buyer) from a bank or financial institution outside India. The suppliers’…

Interest Equalisation Scheme for Export Credit

The interest Equalisation Scheme (IES) for pre and post shipment rupee export credit is being implemented by Directorate (DGFT) through commercial banks.The scheme came into effect from 01.04.2015 and is for a period of 5 years.(The scheme was earlier called as ‘interest subvention scheme’  which was  existing for the period from August 2010 to 31.03.2015).…