21 July 2021
Company has export debtors and wish to avail Cash credit against security of export debtors. Company do not want foreign bill discounting. Is it possible.
21 July 2021
Finance against Export Debtors comes under purview of Export Finance hence it is governed by Master circular of RBI RBI/2015-16/47 dated July 1, 2015 hence Finance can be given under Foreign Bill Discounting which may also have cover of ECGC .Hence allowing Cash Credit will not be possible. Secondly enforcing Hypothecation against Overseas debtors will be difficult hence it does not remain acceptable security. Therefore allowing Cash Credit is a risky proposition for Banks.
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