Authorized dealers, while undertaking import and export ramifications, should ensure that the imports into India and export from India are in conformity with the Export Import Policy in force and Foreign Exchange Management (Current Account Transactions) Rules, 2000 framed by Government and the directions issued by Reserve Bank under Foreign Exchange Management Act from time to time. Banks also have to follow credit policy announced by Reserve Bank of India from time to time to ensure compliance while dealing with financing of Inland Trade transactions.
Authorized dealers have to follow normal banking procedures and adhere to the provisions of various rules framed by International Chamber of Commerce, Paris and onshore credit policy of the country. Banks In India use the following trade products to meet financing requirements of the clients: Imports: 1. Opening of Letter of Credit and Follow up Financing 2. Buyer’s Credit / Supper’s Credit In the form of short term credit for Imports Into India 3. Trust Receipt Financing 4. Simple Overdraft Facility 5. Issuance of some of the guarantees to facilitate Imports related activities Exports: 1.
Pre-salesmen Credit In Indian Rupees . Pre-salesmen Credit In Foreign Currency 3. Post-shipment Credit In Indian Rupees 4. Post-shipment Credit In Foreign Currency 5. Forfeiting of Export Receivables 6. Factoring of Export Receivables 7. Simple Overdraft Facility 8. Issuance of some of the guarantees to facilitate Export related actively Inland Trade: 1. Local Bill Discounting backed by Bill of Exchange 2. Local Bill Discounting backed by Letter of Credit 3. Simple Overdraft Facility 4. Issuance of some of the guarantees to facilitate Inland Trade actively Trade Finance By onshore
Commerce, Paris and onshore credit policy of the country. Banks in India use the 2. Buyer’s Credit / Supper’s Credit in the form of short term credit for Imports into 5. Issuance of some of the guarantees to facilitate imports related activities Exports: 1. Pre-shipment Credit in Indian Rupees 2. Pre-shipment Credit in Foreign Currency 3. Post-shipment Credit in Indian Rupees 4. Post-shipment Credit in Foreign Currency 8. Issuance of some of the guarantees to facilitate Export related activities Inland 4. Issuance of some of the guarantees to facilitate Inland Trade activities
