A Special Non-Resident Rupee (SNRR) Account is opened with Authorized Dealer (AD) banks in India for specified transactions related to trade, foreign investments, External Commercial Borrowings (ECBs), and more. It serves as an alternative to executing inward/outward remittances in convertible foreign currency for each transaction with residents in India. This account allows non-residents with business…
The FEDAI Rules (10th edition) for import transactions came in to force with effect from 01 April 2019. The FEDAI rule 3.1 deals with the application of exchange rate, rule 3.2 deals with the application of Interest, rule 3.3 deals with crystallisation of Import Bill under Letters of Credit as detailed below; Application of exchange…
The revised FEDAI Rules (10th edition) for export transactions came in to force with effect from 01 April 2019. The FEDAI rule 2.1 deals with Post shipment Credit in Rupees, Application of Interest, Normal Transit Period, Substitution/Change in Tenor, and Export Bills sent for collection. Post shipment credit in Rupees:The exchange rate for post-shipment Foreign…
The 10th edition of FEDAI Rules came in force from 01 April 2019. The FEDAI rule 4.1 deals with Outward Remittance, Rule 4.2 deals with encashment of foreign currency notes and instruments, Rule 4.3 deals with Payment of foreign inward remittance, Rule 4.4 deals with the applicable exchange rate for conversion of the foreign currency,…
Under the export credit insurance framework of the Export Credit Guarantee Corporation of India (ECGC), policyholders are required to follow specific procedures when filing claims for loss. Adherence to these procedural requirements ensures that claims are processed smoothly and efficiently, in accordance with the terms and conditions of the policy. The following are some common…
The Export Credit Guarantee Corporation of India (ECGC) plays a pivotal role in promoting India’s international trade by offering a suite of insurance policies and guarantees designed to mitigate the diverse risks faced by exporters and their financiers. These instruments protect against non-payment by overseas buyers due to commercial or political factors and help financial…
The Export Credit Guarantee Corporation of India (ECGC) plays a critical role in supporting Indian exporters by providing comprehensive insurance coverage against the risks associated with international trade. These risks may arise from commercial failures or political uncertainties in the buyer’s country. ECGC’s suite of policies and guarantees helps exporters mitigate such risks and promotes…
Export credit insurance serves as a critical safeguard for exporters engaged in international trade, protecting them against the risk of non-payment by foreign buyers. By covering both commercial and political risks, this form of insurance enables exporters to extend credit with greater confidence, thereby facilitating increased sales, market diversification, and financial stability. Understanding Export Credit…
In the realm of international trade, risk refers to the potential for adverse outcomes or financial losses arising from uncertainties inherent in cross-border transactions. Among the various types of risks encountered in global business, country risk is particularly significant. It pertains to the potential for political, economic, or social developments in a foreign country to…
International trade offers significant growth opportunities for Indian exporters but also exposes them to various risks—commercial, political, and financial. The Export Credit Guarantee Corporation of India (ECGC) plays a pivotal role in mitigating these risks, thereby promoting greater confidence and participation in global markets. ECGC provides insurance and guarantees to Indian exporters and lending institutions…
