...Domestic Information Export Finance Reserve Bank of India Foreign Exchange Department Central Office, Mumbai RBI/2004-05/153 DBOD IECS No. 35/04.02.02/2004-05 Dated September 1, 2004 The Chairmen/Chief Executives of all Commercial Banks Dear Sir, Master Circular on EXPORT CREDIT IN FOREIGN CURRENCY As you are aware, in order to have all current instructions on a subject at one place, the Reserve Bank of India had issued a Master Circular IECD No. 7/04.02.02/2002-03 dated July 1, 2003 on the captioned subject, which is now updated as on 1st July, 2004. A copy of the revised Master Circular is enclosed. It may be noted that the Master Circular consolidates and updates all the instructions contained in the circulars listed in the Appendix, in so far they relate to providing export credit in foreign currency by banks to the borrowers. Yours faithfully, Sd/(A. SREEKUMARAN) General Manager Encls. : As above (Details of the Master Circular given below) Master Circular EXPORT CREDIT IN FOREIGN CURRENCY CONTENTS 1. Pre-Shipment Export Credit 1.1 Pre-shipment Credit in Foreign Currency (PCFC) 1.1.1 Definition 1.1.2 General 1.1.3 Scheme 1.1.4 Source of Funds for Banks 1.1.5 Spread 1.1.6 Period of Credit 1.1.7 Disbursement of PCFC 1.1.8 Liquidation of PCFC Account 1.1.9 Cancellation/Non-execution of Export Order 1.1.10 Running Account Facility for All Commodities 1.1.11 Forward Contracts 1.1.12 Sharing of EPC under PCFC 1.1.13 Supplies from One EOU/EPZ/SEZ Unit to Another EOU/EPZ/SEZ...
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...Table of Contents Capital Account Transactions Pages 03 to 08 FEMA Regulations – Capital Account Types of Capital A/c Transactions Foreign Institutional Investors Pages 09 to 11 Foreign Direct Investment Pages 12 to 15 American Depository Receipts Pages 16 to 17 Global Depository Receipts Pages 18 to 19 External Commercial Borrowings Pages 20 to 21 Foreign Currency Convertible Bonds Pages 22 to 25 Capital Account Convertibility Pages 26 to 28 Tarapore Committee and Current Status Pages 29 to 35 What is Capital Account Transaction? Capital account transaction is defined as a transaction which:- ➢ Alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India. In other words, it includes those transactions which are undertaken by a resident of India such that his/her assets or liabilities outside India are altered (either increased or decreased). For example:- (i) a resident of India acquires an immovable property outside India or acquires shares of a foreign company. This way his/her overseas assets are increased; or (ii) a resident of India borrows from a non-resident through External commercial Borrowings (ECBs). This way he/she has created a liability outside India. ➢ Alters the assets or liabilities in India of person resident...
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...Profile: Southeast Bank completed 14 years of operations in March 2010. It was established by an Act of Parliament known as the Export-Import Bank of Bangladesh Act 1981 and commenced operations in March 1982. Southeast Bank is wholly owned by the Government of Bangladesh. Southeast Bank was set up for the purpose of financing, facilitating and promoting foreign trade in Bangladesh and also to provide financial assistance to exporters and importers and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade. It has a high-powered Board of Directors comprising: A Deputy Governor of Reserve Bank of Bangladesh, Chairmen of IDBI, ECGC, Representatives of the Ministries of Finance, Commerce, Industry, External Affairs and Planning, Chairmen of scheduled banks and professionals from trade and industry. Over the years, Southeast Bank has developed 35 lending programmes covering all stages of the export cycle namely Import of Technology, Export Product Development, Export Production, Export Marketing , Pre-shipment, Post-shipment, Investment Abroad Financial Highlights | |2000-01 |2001-02 |2002-03 |2003-04 |2004-05 | |Paid up Capital |549.99 |649.99 |649.99 |649.99 |849.99 | |Reserves...
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...Reserve Bank of India (RBI) is responsible for compilation and dissemination of BoP data. BoP is broadly consistent with the guidelines contained in the BoP Manual of the International Monetary Fund. 4.2. Balance of payment (BoP) comprises of current account, capital account, errors and omissions and changes in foreign exchange reserves. Under current account of the BoP, transactions are classified into merchandise (exports and imports) and invisibles. Invisible transactions are further classified into three categories, namely (a) Services-travel, transportation, insurance, Government not included elsewhere (GNIE) and miscellaneous (such as, communication, construction, financial, software, news agency, royalties, management and business services); (b) Income; and (c) Transfers (grants, gifts, remittances, ets.) which do not have any quid pro quo. 4.3. Under the Capital Account, capital inflows can be classified by instrument (debt or equity) and maturity (short or longterm). The main components of the capital account include foreign investment, loans and banking capital. Foreign investment, comprising Foreign Direct Investment (FDI) and Portfolio Investment consisting of Foreign Institutional Investors (FIIs) investment, American Depository Receipts/Global Depository Receipts (ADRs/GDRs) represents non-debt liabilities, while loans (external assistance, external commercial borrowings and trade credit) and banking capital, including non-resident Indian (NRI) deposits are debt liabilities...
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...July-December 2011 Monetary Policy Statement July 27, 2011 Monetary Policy Department Bangladesh Bank 1 Monetary Policy Statement H1 FY12 (July December 2011) Executive Summary Introduction: This (twelfth) issue of Bangladesh Bank’s (BBs) half yearly Monetary Policy Statement (MPS) outlines the monetary policy stance that BB will pursue in H1 FY12 in the context of unfolding near term developments in the domestic and global scenes. The ex ante announcements of monetary policy stance are intended to anchor inflation expectations of economic agents and the general public. As with the previous recent issues of MPS, drafting of this issue was preceded by rounds of consultations with stakeholders including trade body representatives, senior professionals and academics, past finance ministers/finance advisers/BB Governors; to glean their perceptions about policy outcomes in the preceding period, as also about the challenges and priorities for the way forward. For the first time, suggestions on monetary policy were also invited and received on BB website. FY11 growth outcome, outlook for FY12: Output and investment activities in the economy paced up substantially in FY11 after a couple of years in post global crisis relative slowdown. The Bangladesh Bureau of Statistics (BBS) estimates real GDP growth for FY11 at 6.66 percent (very close to initial projection of 6.70 percent), following 6.07 percent growth in FY10. Industry sector had the strongest growth gain from...
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...15020448105 | 5 | Mr. Sameep Gadkari | 15020448106 | 6 | Mr. Nandkumar | 15020448015 | 7 | Mr. Bhushan Patil | 15020448027 | 8 | Mr.Vikrant Birje | 15020448056 | Guided By, Prof.S.K.Vaze International Financing TABLE OF CONTENTS Sr. No | Topics | Page No. | 1 | Objectives | 3 | 2 | Foreign Exchange-An Overview | 3 | 3 | Convertibility of Indian Rupee-History | 4 | 4 | Convertibility of Currency-Meaning | 4 | 5 | Current Account Convertibility | 5 | 6 | Capital Account Convertibility * Important Provisions under FEMA | 6,7 | 7 | Convertibility of Indian Rupee-Positive Effects | 9 | 8 | Capital Account Convertibility-Negative Effects | 10 | 9 | Key Points and Analysis | 12 | 10 | Conclusion and Recommendations | 14 | 11 | Bibliography | 15 | Objectives: A. To know Foreign exchange mechanism followed in the past and current practices. B. To understand the concept of “Convertibility of Currency” C. To Study journey of convertibility of Indian rupee pre and post Liberalisation and impact on exchange rate. D. Brief study of Indian laws of regulations and prohibitions in context of the currency convertibility so far. E. Understand the provisions under FEMA. F. Study the other countries policies on ‘convertibility of currency’ and its impact on their economies in brief. G. Study of positive and negative side of convertibility of Indian rupee...
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...SUMMARY OF MASTER CIRCULAR ON EXPOSURE NORMS INTRODUCTION As a prudential measure aimed at better risk management and avoidance of concentration of credit risks, the Reserve Bank of India has advised the banks to fix limits on their exposure to specific industry or sectors and has prescribed regulatory limits on banks’ exposure to individual and group borrowers in India. In addition, banks are also required to observe certain statutory and regulatory exposure limits in respect of advances against / investments in shares, convertible debentures /bonds, units of equity-oriented mutual funds and all exposures to Venture Capital Funds (VCFs). Banks should comply with the following guidelines relating to exposure norms. Purpose This is a summary on Master Circular providing framework of the rules/regulations/instructions issued by the Reserve Bank of India to Scheduled Commercial Banks relating to credit exposure limits for individual / group borrowers and credit exposure to specific industry or sectors, and the capital market exposure of banks. Definition of 'Credit Exposure' The total amount of credit extended to a borrower by a lender. The magnitude of credit exposure indicates the extent to which the lender is exposed to the risk of loss in the event of the borrower's default. Credit Exposures to Individual / Group Borrowers • Exposure to a single borrower not to exceed 15% of bank’s capital funds • Exposure to a group of borrowers not to exceed 40% of capital...
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...important segment of the Indian Money Market. Under call money market, funds are transacted on an overnight basis and under notice money market, funds are transacted for a period between 2 days and 14 days. Participants in call/notice money market currently include scheduled commercial banks (excluding RRBs), co-operative banks (other than Land Development Banks) and Primary Dealers (PDs), both as borrowers and lenders .The call money market is influenced by liquidity conditions, mainly governed by deposit mobilization, capital flows and the reserve bank’s operations affecting banks’ reserve requirements on the supply side and tax outflows, government borrowing programme, non-food credit off-take and seasonal fluctuations such as large currency drawals during the festive season on the demand side. During the times of easy liquidity, call rates tend to hover around the bank’s repo rate which provides a avenue for parking short term surplus funds and during periods of tight liquidity, call rates tend to move up towards the bank’s reverse repo rate. CHAPTER-2 REVIEW OF LITERATURE The information content of the Islamic interbank money market rate in Malaysia Author:...
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...ECONOMIC SURVEY 2014-15 STATISTICAL APPENDIX STATISTICAL APPENDIX : ECONOMIC SURVEY 2014-15 1. National Income and Production 1.1 1.2 1.3 A1 1.3 A2 1.3 B1 1.3 B2 1.4 A 1.4 B 1.5 1.6 1.7 A 1.7 B 1.8 A 1.8 B 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.25 1.26 1.27 1.28 Gross National Income and Net National Income .................................................................................................. Annual Growth Rates of Gross National Income and Net National Income ...................................................... Gross Value Added at Factor Cost by Industry of Origin (at Constant Prices) ................................................... Gross Value Added at Basic Prices by Industry of Origin (at Constant Prices) ................................................... Gross Value Added at Factor Cost by Industry of Origin (at Current Prices) ...................................................... Gross Value Added at Basic Prices by Industry of Origin (at Current Prices) ...................................................... Annual Growth Rates of Real Gross Value Added at Factor Cost by Industry of Origin (Per cent) ................ Annual Growth Rates of Real Gross Value Added at Basic Prices by Industry of Origin (Per cent) ................ Gross Domestic Saving and Gross Capital Formation (at Current Prices) .......................................................... Gross Domestic...
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...Stress in liquidity is at the heart of any banking crisis in history. During the financial crisis of 2007-09, funding liquidity risk caused the collapse of interbank markets, which became the focus of authorities’ attention at restoring order. Accordingly, central banks and other regulatory bodies world-wide have been evolving prudential liquidity norms in order to impart stability to financial systems. Apart from implementing newer norms on liquidity, they have been devising ways of assessing objectively liquidity conditions in the markets. As an end to this objective, various central banks have started identifying the indicators of liquidity and preparing a composite index thereof in order to have a bird’s eye view of liquidity conditions across financial markets. In this study, a systemic liquidity index (SLI) is constructed considering prevailing rate variables across different financial markets in India. The SLI, so developed, is appropriately validated for its function as a metric for measuring systemic liquidity and its implications on the banks’ performance. Introduction “Unfortunately the word ‘liquidity’ has so many facets that is often counter-productive to use it without further and closer definition” - Charles Goodhart (Banque de France, 2008) The financial crisis of 2007-09 originated in the relatively small subprime lending market of the US, but engulfed the world financial markets very quickly and had devastating effect on the global economy. One of the important...
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...INTERNSHIP REPORT ON GENERAL BANKING ACTIVITIES OF PUBALI BANK LIMITED: A STUDY ON SADARGHAT BRANCH, DHAKA Prepared for Mr.Sheikh Md. Abdur Rahim Assistant Professor and Head Department of Real Estate and Department of Commerce Faculty of Business and Economics Daffodil International University Prepared by Rajib Dutta ID No.: 102-11-1571 th BBA 26 Batch(Major: HRM) Faculty of Business & Economics Daffodil International University Date of Submission: 7 December 2014 LETTER OF TRANSMITTAL 7 December 2014 Mr.Sheikh Md. Abdur Rahim Assistant Professor and Head Department of Real Estate and Department of Commerce Faculty of Business and Economics Daffodil International University Subject: Submission of the internship report. Dear Sir, It is my great pleasure to submit the Internship report entitled “General Banking Activities of Pubali Bank Limited: A Study on Sadarghat Branch,Dhaka’’. As per requirement of BBA, I have completed the Internship in Pubali Bank Limited. I have tried to exert all the knowledge that I gathered through my working with this branch of PBL. Working for three months (6th august to 6th November) in the Pubali Bank Limited, Sadarghat Branch helped me to fulfill the requirements of obtaining practical learning and subsequently prepare of this report. My internship in Pubali Bank Limited was a worthwhile experience and the exposure of such an organization would be valuable for me. Before facing the real business world...
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...RBI/2014-15/3 Master Circular No. 12/ 2014-15 July 01, 2014 (Updated up to January 23, 2015) To All Authorised Dealer Category – I banks and Authorised banks Madam / Sir Master Circular on External Commercial Borrowings and Trade Credits External Commercial Borrowings and Trade Credits availed of by residents are governed by clause (d) of sub-section 3 of section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 3/ 2000-RB viz. Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, dated May 3, 2000, as amended from time to time. 2. This Master Circular consolidates the existing instructions on the subject of "External Commercial Borrowings and Trade Credits" at one place. The list of underlying circulars / notifications, consolidated in this Master Circular, is furnished in the Appendix. This Master Circular may be referred to for general guidance. The Authorised Persons and the Authorised Dealer Category – I banks may refer to respective circulars/ notifications for detailed information, if so needed. 3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated. Yours faithfully (B P Kanungo) Principal Chief General Manager 1 Index PART I EXTERNAL COMMERCIAL BORROWINGS (ECB) I.(A) AUTOMATIC ROUTE i) Eligible Borrowers ii) Recognised Lenders iii) Amount...
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...Chapter: Government Plans Programme & Policies Topic: INDIA, G 20 AND THE WORLD (PART -1) Introduction Second World War was definitive in redistribution of the world power. Authority of United States of America was established and after a prolonged cold war with the other waning super power, USSR, the power slowly shifted towards the western democracies led by US. Japan was quick to recover too and through its technological innovations & business practices soon became a formidable force despite its relatively smaller area, population and insignificant military prowess. Economic might had become the new centre of gravity and formations like G6, a club of the rich, involving US, Japan France, Germany, Italy and UK emerged in 1975. Origin of G-20 After the second world war, free from occupation and external aggression countries like India and China, initially stayed aloof addressing their own domestic concerns, building their nations. It took some time for these countries to integrate themselves in the world economy. Meanwhile they continued to grow rapidly in terms of population, a factor that they could later leverage when they would start to open up. Slowly even with relatively lower per capita GDP but a big enough population and favourable age structure their overall impact in world economy could no longer be ignored. In the meantime, Developed countries were at their peak. The way in which business would be done was changing world over. Spurred by the information...
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...Procedure for Clearance of Imported and Export Goods I. Import: Bill of Entry – Cargo Declaration: Goods imported in a vessel/aircraft attract customs duty and unless these are not meant for customs clearance at the port/airport of arrival by particular vessel/aircraft and are intended for transit by the same vessel/aircraft or transshipment to another customs station or to any place outside India, detailed customs clearance formalities of the landed goods have to be followed by the importers. In regard to the transit goods, so long as these are mentioned in import report/IGM for transit to any place outside India, Customs allows transit without payment of duty. Similarly for goods brought in by particular vessel aircraft for transshipment to another customs station detailed customs clearance formalities at the port/airport of landing are not prescribed and simple transshipment procedure has to be followed by the carrier and the concerned agencies. The customs clearance formalities have to be complied with by the importer after arrival of the goods at the other customs station. There could also be cases of transshipment of the goods after unloading to a port outside India. Here also simpler procedure for transshipment has been prescribed by regulations, and no duty is required to be paid. (Sections 52 to 56 of the Customs are relevant in this regard). 2. For other goods, which are offloaded importers, have the option to clear the goods for home consumption after...
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...SUMMER INTERNSHIP PROJECT REPORT ON ‘Study of SBI FAST-Cash Management at State bank of India’ At [pic] By DINESH MEGHWANI (REG.NO.1120814) MBA - Finance, 2011-2013 Under the esteemed guidance of Under External guidance of Under Internal guidance of Mr. Rama Rao Duba Prof. Dr. Ramkesh Gupta Chief Manager Finance Department SBI-Nawapara Rajim Christ University, Bangalore [pic] CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE-56002 DECLARATION I, DINESH MEGHWANI, a student of PGDM with GERMAN MBA, at Christ University hereby declare that this Project Report under the title “A study on SBI-FAST Cash Management” is the record of my original work under the guidance of Mr. Rama Rao Duba. This report has never been submitted to anywhere else for award of any degree/diploma. Place: Nawapara Rajim DINESH MEGHWANI Date: MBA – 3rd trimester [pic] CERTIFICATE This is to certify that MR. DINESH MEGHWANI (1120814) is...
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