Trade Finance

Introduction affair Finance in India comprises of finance against imports into India, merchandise from India and inland swop transactions. While doing this study, it is important to know approximately the regulations governing such transactions in India. entailment and Export trade Is regulated by the Directorate General of irrelevant Trade (GIFT) chthonian Ministry of Commerce & Industry, Department of Commerce, Government of India. Banks In India, authorized by support Bank of India to deal In distant Exchange atomic number 18 know as Authorized Dealers.Authorized dealers, while undertaking Import and export ramifications, should assure that the Imports Into India and export from India are In conformity with the Export Import insurance In force and irrelevant Exchange Management (Current Account Transactions) Rules, 2000 border by Government and the directions Issued by Reserve Bank under Foreign Exchange Management crook from while to time. Banks also have to comp anion character policy announced by Reserve Bank of India from time to time to ensure compliance while dealing with financing of landlocked Trade transactions.Authorized dealers have to follow normal banking procedures and adhere to the provisions of dissimilar rules framed by International Chamber of Commerce, Paris and onshore reliance 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 finance 2. Buyers Credit / Suppers Credit in the form of short term character reference for Imports into India 3. Trust Receipt financial support 4.Simple Overdraft Facility 5. effect of roughly of the guarantees to make haste 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 . Forfeiting of Export Receivables 6. Factorin g of Export Receivables 7. Simple Overdraft Facility 8. Issuance of some of the guarantees to facilitate Export related activities Inland Trade 1.Local standard Discounting support 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 is regulated by the Directorate General of Foreign Trade (GIFT) under Ministry of Commerce & Industry, Department of Commerce, Government of India. Banks in India, authorized by Reserve Bank of India to deal in Foreign Exchange are known as Authorized Dealers.Authorized dealers, while undertaking import and export transactions, 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 issued by Reserve Bank under Foreign Exchange Management Act from time to time. 1. Opening of Letter of Credit and Follow up Finan cing 2. Buyers Credit / Suppers Credit in the form of short term credit for Imports into 4. Issuance of some of the guarantees to facilitate Inland Trade activities