Running account facility-packing credit, Marketing Research

Assignment Help:

Running Account Facility: The RBI has permitted banks to grant packing credit advances even without lodgement of LIC or firm order /contract under the scheme of Running Account Facility subject to the following conditions:

i) The facility may be extended, provided the need for Running Account facility has been established by the exporters to the satisfaction of the bank

ii) The banks may extend this facility only to those exporters whose track record has been good

iii) LIC or firm order is produced within 2 reasonable period of time. For Commodities under selective credit control, banks should insist on production of LICs or firm orders within one month- from the date of sanction.

iv) The concessive credit available in respect of individual pre-shipment credit should not go beyond 180 days.

Packing credit may also be given under the Red Clause letter of credit. In this method, credit is given at the instance and responsibility of the foreign bank establishing the LIC. Here, the Packing credit advance is made against a simple receipt and is unsecured.

 


Related Discussions:- Running account facility-packing credit

State the meaning of research, State the meaning of  Research. Introd...

State the meaning of  Research. Introduction: Research is an art of scientific investigation. Research covers search for and retrieval of information for a particular purp

Competing demands for resources, Competing demands for resources- Even thou...

Competing demands for resources- Even though the above student would like to buy a pickup truck on her sixteenth birthday she would rather have a computer moreover has money for on

Export promotion capital goods scheme, Export promotion Capital Goods Schem...

Export promotion Capital Goods Scheme: Capital goods both new and second hand, may be imported under the Export promotion Capital Goods (EPCG) Scheme. The import of second hand ca

Legal framework, Legal Framework : Section 50 of the Indian Customs Act re...

Legal Framework : Section 50 of the Indian Customs Act requires the exporter to file a declaration in a prescribed form and submit supporting documents to enable the customs autho

Objectives-management of exchange risks, OBJECTIVES After studying this...

OBJECTIVES After studying this unit, you should be able to: 1.  Explain the meaning of exchange rate; 2.  Describe various types of exchange risk; 3.  Discuss the meas

Exports under deferred payments, EXPORTS UNDER DEFERRED PAYMENTS : You h...

EXPORTS UNDER DEFERRED PAYMENTS : You have learnt that all export proceeds must be surrendered to an authorised dealer within 180 days from the date of shipment. Exporters are r

Constructive total loss ctl, Constructive Total Loss (CTL) : Unlike the ...

Constructive Total Loss (CTL) : Unlike the actual total loss, CTL is not a physical loss and is not absolute. CTL may be defined as a total loss when the cost of saving, repai

Running account facility-packing credit, Running Account Facility: The RBI...

Running Account Facility: The RBI has permitted banks to grant packing credit advances even without lodgement of LIC or firm order /contract under the scheme of Running Account Fa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd