FEDAI rules regarding Foreign Exchange Contracts
The FEDAI Rules (10th edition) for import transactions came in to force with effect from 01 April 2019. Regarding foreign exchange contracts the FEDAI rule 5 specifies the norms detailed as below. Contract amounts: FEDAI rule 5.1 states that any ‘Exchange contracts’ shall be for definite amounts and periods”. Whenever a bill contract mentions more…
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FEDAI rules related to Normal Transit Period and the notional due date
The 10th edition of FEDAI Rules came in force from 01 April 2019. Concepts of normal transit period and notional due date are linked to the interest rate on export bills and to arrive at the due date of the bill/export credit. Many people get confused with the Normal Transit period with the time taken…
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Role of EXIM Bank in promoting India’s international trade
EXIM Bank of India was established by the Government of India in 1982 under the Export-Import Bank of India Act, 1981 for 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 merchant banking services and financing for overseas investment…
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Functions of Reserve Bank of India-RBI
The basic functions of RBI (Reserve Bank of India) are “to regulate the issue of Bank Notes and keeping of reserves to secure monetary stability in India and generally to operate the currency and credit system of the country to its advantage.”In addition, to control the supply of portable money circulation, Reserve Bank of India…
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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 on the part of all…
Evolution of FEMA
The government of India enacted the Foreign Exchange Regulation Act, 1973 (FERA) to tackle the foreign exchange crisis in the country. The purpose of FERA was to regulate foreign exchange dealings and other related activities to conserve the country’s foreign exchange reserves. The stringent FERA rules were not amenable to integrating the Indian economy into…
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