packing credit under CGTMSE scheme
This query is : Resolved
03 December 2010
We have availed OD limit of Rs.25.00 Lakhs (Collateral Free) from Karnataka Bank Ltd., Tirupur and the same has been covered under CGTMSE scheme.
In addition to OD we need PACKING CREDIT AND FDBP Limit to execute Export orders. we have approached our bank, they told us that they will cover ECGC for Export credit facilities and they could not sanction Packing Credit & FDBP limit under CGTMSE scheme.
Is it mandatory for bank to cover ECGC for Packing credit. Any RBI Guidelines /circulars?
Pls clarify can we get loan under CGTMSE coverage for Export credit facilities
thanks & regards
V. Sivarajan
In addition to OD we need PACKING CREDIT AND FDBP Limit to execute Export orders. we have approached our bank, they told us that they will cover ECGC for Export credit facilities and they could not sanction Packing Credit & FDBP limit under CGTMSE scheme.
Is it mandatory for bank to cover ECGC for Packing credit. Any RBI Guidelines /circulars?
Pls clarify can we get loan under CGTMSE coverage for Export credit facilities
thanks & regards
V. Sivarajan
04 December 2010
Dear Siva,
I give below abstract of a RBI guidline from their circular on Rupee export credit.
RBI - DBOD No.DIR. (Exp).BC. 01 /04.02.02/2006-07 July 1, 2006
Circular on Rupee Export Credit
2.6 ECGC Whole Turnover Post-shipment Guarantee Scheme
2.6.1 The Whole Turnover Post-shipment Guarantee Scheme of the Export Credit Guarantee Corporation of India Ltd. (ECGC) provides protection to banks against non-payment of post-shipment credit by exporters. Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy. The salient features of the scheme may be obtained from ECGC.
I give below abstract of a RBI guidline from their circular on Rupee export credit.
RBI - DBOD No.DIR. (Exp).BC. 01 /04.02.02/2006-07 July 1, 2006
Circular on Rupee Export Credit
2.6 ECGC Whole Turnover Post-shipment Guarantee Scheme
2.6.1 The Whole Turnover Post-shipment Guarantee Scheme of the Export Credit Guarantee Corporation of India Ltd. (ECGC) provides protection to banks against non-payment of post-shipment credit by exporters. Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy. The salient features of the scheme may be obtained from ECGC.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- CLOSING STOCK QUERY
- Multiple payment of self assessment tax for A Y 2025-2026
- REGARDING ITR FILING QUESTION
- Requirement under FEMA &RBI
- ITC BENEFIT ON BROKRAGE PAID
- Short Term Gain Reporting ITR
- Query regarding reporting of exempt foreign remuneration in ITR
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Error in uploading Form 10BD
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
