Banking Facilities for Exporters and Importers: Financial and Institutional Support Mechanisms

Foreign Exchange

Exporters and importers are extended a wide array of financial and logistical facilities by banks and other supporting institutions. These services are designed to facilitate smooth international trade operations, enhance liquidity, and promote competitiveness in the global market. Key facilities include export and import financing, letters of credit, guarantees, foreign currency accounts, and a variety…

Export and Import of Goods and Services under FEMA: Key Provisions of the 2024 Draft Regulations

Foreign Exchange

On July 2, 2024, the Reserve Bank of India (RBI) proposed a set of streamlined regulations governing the export and import of goods and services, with the objective of enhancing the ease of doing business—particularly for small exporters and importers—and enabling authorised banks to provide more efficient foreign exchange services. These proposals were introduced as…

A guide on export procedures in India

Foreign Exchange

Export documentation and procedures upon prevalent statutes/ amendments and country-specific requirements related to exporting from India are explained in this post. Definition of export: Export means selling goods or services by a person or a company of one country to a buyer in another country. The supplies made to IBRD/IDA/ADB aided projects are termed as…

Post shipment finance to exporters without packing credit facility

Foreign Exchange

Banks in India offer various credit facilities to exporters both at pre-shipment stage (Packing Credit) and Post-shipment stage viz. Purchase of export bills, Discount of Export Bills, Negotiation of Export bills, Advance against Undrawn Balances on Export Bills, Advance against Retention Money, Advance against Duty Draw Back, Advance against Deemed Exports, Advance against the export of Goods for…

Eligibility norms for bank finance to exporters

Foreign Exchange

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 supplies etc. for the rendering of…

What are the types of post-shipment finance available from banks?

Foreign Exchange4 Comments

(This post provides details about Purchase of export bills, Discount of Export Bills, Negotiation of Export bills, Advance against Undrawn Balances on Export Bills, Advance against Retention Money, Advance against Duty Draw Back, Advance against Deemed Exports, Advance against export of Goods for Exhibition and Sale) Post-shipment Export credit facility in banks means finance made to an exporter…