What is interest Equalisation scheme?
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2.2 Revised interest equalisation rates under the Scheme will now be 3 per cent for MSME manufacturer exporters exporting under any HS lines, and 2 per cent for manufacturer exporters and merchant exporters exporting under 410 HS lines (after excluding 6 HS lines pertaining to Telecom Sector as mentioned above).
Which person is not eligible for packing credit?
Q. Which of the following person is not eligible for packing credit? merchant exporter.
What is the maximum period of pre-shipment advance?
In line with this relaxation, it has been decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from one year to 15 months, for disbursements made upto July 31, 2020.
What is bill discounting and its types?
Bill Discounting is a trade-related activity in which a company’s unpaid invoices which are due to be paid at a future date are sold to a financier (a bank or another financial institution).
What is Postship credit?
‘Post-shipment Credit’ means any loan or advance granted or any other credit provided by a bank to an exporter of goods / services from India from the date of extending credit after shipment of goods / rendering of services to the date of realisation of export proceeds., and includes any loan or advance granted to an …
What is export bill discounted?
Export bill discounting is an international trade term and practice. Export bill discounting is designed to allow businesses faster payment for the goods they have shipped to the buyer. Export bill discounting occurs when a business contracts with a buyer for their goods on credit.
How many types of bill discounting are there?
Bills are classified into four categories as LCBD (Bill Discounting backed with LC), CBD (Clean Bill Discounting), DBD (Drawee bill discounting) and IBD (Invoice bills discounting).
What is meant by bill rediscounting scheme?
Rediscounting of Bill Rediscounting of commercial bills is a system wherein a financial institution rediscounts unmatured discounted commercial bills with any other financial institution.
What is rediscounting in monetary policy?
​Rediscounting​ Rediscounting is a standing credit facility provided by the BSP to help banks meet temporary liquidity needs by refinancing the loans they extend to their clients.
How do I claim interest Equalisation scheme?
As part of this scheme, a rebate of interest is provided to exporters on pre and post-shipment export credit like packing credit. An eligible exporter has to submit a certification of the external auditor to the concerned bank to claim this benefit.
Is interest Equalisation scheme extended?
“The government has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit up to March 31, 2024 or till further review, whichever is earlier. The extension takes effect from October 1, 2021 and ends on March 31, 2024,” the RBI said in a notification.
What is Bill rediscounting scheme of Reserve Bank of India?
Working Group on Bills of Exchange Bill Rediscounting Scheme of Reserve Bank of India was formulated to facilitate development of Bill culture in the country and move towards financing of receivables from the existing financing of inventories. The scheme has, however, not picked up momentum in the market.
Which banks are eligible to rediscount the bills with the RBI?
All scheduled commercial banks are eligible to rediscount the bills with the Reserve Bank of India or any other institution. The front portion of the bill indicates the nature of the transaction. The usance period is not more than ninety days.
What is Bill Rediscounting and how does it work?
The RBI has made the following directives concerning bill rediscounting: Rediscounting of the ineligible bill will be handled as an unsecured loan. Only usance bills held by other banks can be rediscounted. Finance companies cannot avail this facility. Banks should not rediscount bills discounted by non-banks.
What is the RBI Working Group on discounting of bills?
The Reserve Bank of India constituted a Working Group on Discounting of Bills by banks in December 1999 to examine the possibility of expanding the scope of bill discounting and to extend the facility to services sector in view of its growing importance.
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