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A

PROJECT REPORT ON

Export and Import Finance

In Vijaya Bank Submitted in partial fulfilment of requirements for the a ard of the

de!ree in

"aster of Business #dministrationOf Bangalore University By

SHANAVAS.P.PREG NO: 04ACCM6071

$nder the !uidance of

Mr. ANIRBAN GHATAK

Faculty% #l #meen Institute of "ana!ement

Al -Ameen Institute of M n !ement Stu"iesHosur Road, Bangalore - 560027

2005-2006

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TABLE OF CONTENTS

1 E e!u"#$e su%%ar& 5

2 'ndus"r& (ro)#le *

+ Co%(an& (ro)#le 14

4 M! #nse& 7s Model 24

5 es#gn o) ".e s"ud& +0

6 Resear!. Me".odolog& +1

7/ &(es o) o!u%en"ar& Cred#" ++

* e""er o) Cred#" 40

E (or" 3#nan!e 4+

10 '%(or" )#nan!e 66

11 General Re%#""an!es *4

12 Anal&s#s and #n"er(re"a"#on *

1+ ugges"#ons 614 Con!lus#on *

15 B# l#ogra(.&

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#. E$e%uti&e summ r'

.#s #s ".e (o#n" o) "#%e .ere no !oun"r& !an !la#% "o e !o%(le"el& #nde(enden"

/E$er&one #s e))#!#en" enoug. "o (rodu!e so%e".#ng, u" no" e$er&".#ng/ E$er& !oun"r& #s

de(enden" on o".ers )or so%e".#ng or o".er/ o #" #s o $#ous ".a" %o$e%en" o) goods and

ser$#!es .as "o "a e (la!e a!ross ".e orders/ .#s %o$e%en" .as een g#$en a #del&a!!e("ed na%e !alled #n"erna"#onal "rade

G 8l# eral#9a"#on, (r#$a"#9a"#on and glo al#9a"#on .as (la&ed a (#$o"al role #n ".e

e!ono%#! de$elo(%en"/ '" .as (a$ed a& )or !ross#ng e!ono%#! oundar#es and !arrng

ou" "rade e" een d#))eren" !oun"r#es )or 'nd#a/

E!ono%#! de$elo(%en" !an e a!.#e$ed & !oun"r#es & #%(le%en"#ng ".e (ol#!& o)

;G#$e and a e< ased on )a%ous ".eor#es l# e !o%(ara"#$e ad$an"ages ,&es e are

"al #ng a ou" ".e !ru!#al log #n ".e .eel o) gro ". o) !oun"r& ; .e 3ore#gn rade ;/

oda&=s us#ness %an"ra #s ;E (or" or er#s.'%(or" Ban o) 'nd#a 8E?'M #s ".e

#ns"#"u"#on )or (ro@e!" )#nan!e & (ro$#d#ng d#re!" )#nan!e and !oord#na"#ng ".e or #ng o)

".e #ns"#"u"#ons engaged #n )#nan!#ng ".e e (or" #%(or" o) goods and ser$#!es/

.e RB' #s ".e A E? an .#!. #s au".or#9ed, "o e "end and regula"e e (or" !red#"

"ransa!"#on #n!lud#ng )ore#gn e !.ange a))a#rs / .e (ol#!#es and (ro!edures are regula"ed

)or e$er& )#$e &ears ".roug. ".e E?'M (ol#!&/

.e (ol#!#es la#d do n & ".e E?'M (ol#!& s.ould e s"r#!"l& )ollo ed and e e!u"ed &

an ers "o (ro$#de ".e ass#s"an!e re u#red "o ".e e (or"ers/ All an s .a$e "o )ollo ".e

sa%e (ro!edures and ".e an ers need "o e e (or"er )r#endl&/

Ban ers are een g#$en ass#s"an!e #n ".e )or% o) (re-s.#(%en" and (os"-s.#(%en" )#nan!e/

.roug. ".#s #n"er#% re(or" "rul& (ro(oses .a$e g#$en a !o%(re.ens#$e &e" r#e)

"es"#%on& on ".e #n"r#!a!#es o) e (or" )#nan!#ng and rela"ed an #ng (ro!edures #n 'nd#a

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#". #@a&a Ban , .#!. #s #nd enoug. #n allo #ng us "o do ".#s (ro@e!" a" ".e an ,

a!"#ng as a ea!on #n ".e area o) an #ng (ro!edures/

(. IN)*STR+ PRO,I E

'n"erna"#onal "rade !ons#s"s o) "ransa!"#ons ".a" are !arr#ed ou" a!ross na"#onal orders "o

sa"#s)& ".e o @e!"#$es o) #nd#$#duals, organ#9a"#on and na"#ons #". ".e (ol#!& o)

l# eral#9a"#on and #ndus"r#al#9a"#on e#ng )ollo ed a!ross ".e glo e na"#on .a$e %o$ed

"o ards s(e!#al#9#ng #n ".e (rodu!"#on o) )e goods/ Mos" o) ".e na"#ons s(e!#al#9e #n

(rodu!#ng (ar"#!ular goods or (ro$#d#ng (ar"#!ular (rodu!"#$#"& e!ause all o) us !an

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!o%(e"#"#$e ad$an"age/ Our %odern e!ono%& allo s as e !.ang#ng ".e goods and

ser$#!es, e #s. "o !onsu%e/ Na"#ons g#$e u( sel) su))#!#en!& and a!!e("s

#n"erde(enden!e #n order "o o "a#n ".e ene)#"s o) "rade and s(e!#al#9a"#on/ .ese ene)#"s

)or% ".e as#s o) ".e ".eor& o) #n"erna"#onal "rade/

,OREIGN TRA)E

3ore#gn e !.ange as de)#ned #n ".e )ore#gn e !.ange regula"#on a!" 1 7+ )ore#gn !urren!&

and #n!ludes

1/ All de(os#"s !red#"s, alan!e (a&a le #n an& )ore#gn !urren!& and dra)"s, "ra$elers

!.e ues le""ers o) !red#" and #ll o) e !.ange, e (ressed or dra n #n 'nd#an !urren!&

2/ An& #ns"ru%en"s (a&a le a" ".e o("#on o) dra ee or .older ".ere o) or a (ar"& ".ere "o,

e#".er #n 'nd#an !urren!& or #n )ore#gn !urren!& or (ar"l& #n o".er/

,OREIGN E CHANGE CONTRO A)MINISTRATION

Reser$e an o) 'nd#a a!"s as ".e !us"od#an o) )ore#gn e !.ange on ".e e.al) o) ".e

go$ern%en" o) 'nd#a/ '" #s e%(o ered "o #ssue no"#)#!a"#on rela"#ng "o )ore#gn e !.ange

deal#ngs "o ensure #"s (ro(er u"#l#9a"#on/ r#or&, 3ERA 8)ore#gn e !.ange regula"#on A!"

and no #%(ro$ed 3EMA 8)ore#gn e !.ange %anage%en" a!" are s"a"u"or& gu#del#nes "o e )ollo ed #n %a""er o) )ore#gn e !.ange/

,OREIGN E CHNGE RATE

'n ".e #n"erna"#onal "rade s!ene, ".ere are d#))eren" !urren!#es (re$alen" l# e us dollar,

euro, 'nd#an ru(ees, Grea" Br#"a#n (ounds, ed#s. roner e"!/ ea!. as d#))eren" #n.eren"

$alues/ D.en an #n"erna"#onal "rade "a es (la!e e" een " o !oun"r#es .a$#ng " o

d#))eren" !urren!& o) d#))eren" $alues, "o !lose ".e "ransa!"#on, ".e " o !urren!#es .a$e "o

e ua"ed ".e le$el a" .#!. a !urren!& e!o%es e ual "o ".e o".er #s !alled ".ere )ore#gn

e !.ange ra"e/

,OREIGN E CHANGE RATE ARE O,TEN E PRESSE) IN T/O /A+S

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#re!" ra"e

E 1F rs50 8".ere ".e .o%e !urren!& #s e ua"ed "o a un#" o) )ore#gn !urren!&

'nd#re!" ra"e

E Rs 1F 0/028.ere )ore#gn !urren!& e u#$alen" "o one un#" o) .o%e !urren!& #s used /

E PORT 0 IMPORT-E PORT ,INANCING

3#nan!#al ass#s"an!e #s e "ended & ".e an s "o ".e e (or"ers a" (re-s.#(%en" and (os"-

s.#(%en" s"ages/ 3#nan!#al ass#s"an!e e "ended "o ".e e (or"er (r#or "o s.#(%en" o) goods

)ro% 'nd#a )alls #".#n ".e s!o(e o) (re-s.#(%en" )#nan!e .#le ".a" e "ended a)"er

s.#(%en" o) ".e goods )alls under (os"-s.#(%en" )#nan!e/ D.#le ".e (re-s.#(%en" )#nan!e

#s (ro$#ded )or or #ng !a(#"al )or ".e (ur!.ase o) ra %a"er#al, (ro!ess#ng, (a! ag#ng,

"rans(or"a"#on, are.ous#ng e"!/ o) ".e goods %ean" )or e (or", (os"-s.#(%en" )#nan!e #s

generall& (ro$#ded #n order "o r#dge ".e ga( e" een s.#(%en" o) goods and real#9a"#on

3or ra#s#ng )unds #n 'nd#a, #n$es"ors !an ra#se a su s"an"#al (or"#on o) ".e (ro@e!" !os" #n

'nd#a ".roug. de " and e u#"& #ns"ru%en"s/ A((l#!a"#ons )or long "er% loans !an e %ade

"o "a"e 3#nan!#al Cor(ora"#ons .en ".e (ro@e!" #s s%all > generall& less ".an Rs 50

%#ll#on or "o na"#onal-le$el )#nan!#al #ns"#"u"#ons, su!. as ' B' and '3C', .en ".e (ro@e!"

#s large/ 'ns"#"u"#ons e (e!" !on!re"e (ro@e!" and %ar e" re(or"s, #". reasona l& )#r !os"sand #%(le%en"a"#on (lans/ O".er long "er% )#nan!#ng o("#ons #n!lude leas#ng, .#re

(ur!.ase, de)erred (a&%en" guaran"ee e"!/ Ca(#"al %ar e"s are #n!reas#ngl& ".e (re)erred

rou"e )or ra#s#ng )#nan!es #n 'nd#a, ".roug. e u#"& s.ares, de en"ures and .& r#ds/

'n$es"ors #". o". s%all as ell as large )und re u#re%en"s !an %o #l#9e )unds )ro% ".e

%ar e"/ r#$a"e (la!e%en" #". #ns"#"u"#onal #n$es"ors #s also (oss# le/ 'nd#an !o%(an#es

also .a$e ".e o("#on o) ra#s#ng )unds )ro% #n"erna"#onal !a(#"al %ar e"s/ .or" "er%

)#nan!es )or ord#ng !a(#"al re u#re%en"s are a$a#la le )ro% !o%%er!#al an s and

".roug. #ns"ru%en"s su!. as )# ed de(os#"s, and !o%%er!#al (a(er/

.e e!ono%#! needs o) ".e !oun"r&, e))e!"#$e use o) )ore#gn e !.ange and #ndus"r#al as

ell as !onsu%er re u#re%en"s are as#! )a!"ors .#!. #n)luen!e 'nd#a=s #%(or" (ol#!&/

On ".e #%(or" s#de ".e (ol#!& .as ".ree o @e!"#$es:

1/ o %a e ne!essar& #%(or"ed goods %ore eas#l& a$a#la le, #n!lud#ng essen"#al !a(#"al

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Goods )or %odern#9#ng and u(grad#ng "e!.nolog&

2/ o s#%(l#)& and s"rea%l#ne (ro!edures )or #%(or" l#!ens#ng,

+/ o (ro%o"e e))#!#en" #%(or" su s"a"#on and sel)-rel#an!e

E PORT 0 IMPORT 1IMPORT TO IN)IA 1IMPORT PO IC+

IMPORT PO IC+

.ere are onl& 4 (ro.# #"ed goods: "allo )a", an#%al renne", #ld an#%als and

un(ro!essed #$or&/ ".ere #s a res"r#!"ed l#s" u" %os" o) ".e res"r#!"#ons are on grounds are

reser$ed )or (rodu!"#on & s%all and "#n& en"er(r#ses , .#!. are .o%e > ased or $#llage >

ased and .#!. re u#re lo s #lls and e%(lo& a large nu% er o) (eo(le / Bu" ".e (ol#!&

o) res"r#!"#ng #%(or" o) !onsu%er goods #s !.ang#ng/

.e 'nd#an go$ern%en"s !learl& la#d do n (ol#!& are "o a!.#e$e, ".roug. a ser#es o)

(rogress#$e s"e(s ".e a$erage "ar#)) le$els (re$alen" #n ".e A EAN reg#on/ .e as#!

!us"o%s "ar#)) ra"e no ranges )ro% 0 "o 40 (lus add#"#onal du"& o) 2 ".e a$erage ra"e

#s a ou" +0 /

'%(or"s are allo ed )ree o) du"& )or e (or" (rodu!"#on under a du"& e e%("#on s!.e%e/

'n(u" ou"(u" nor%s .a$e een s(e!#)#ed )or %ore ".an 4200 #"e%s/ .ese nor%s s(e!#)&

".e a%oun" o) du"&-)ree #%(or" o) #n(u"s o) allo ed )or s(e!#)#ed (rodu!"s "o e e (or"ed/

.ere are no uan"#"a"#$e res"r#!"#ons on #%(or"s o) !a(#"al goods and #n"er%ed#a"es

/'%(or" o) se!ond >.and !a(#"al goods #s (er%#""ed (ro$#ded ".e& .a$e a %#n#%u%

res#dual l#)e o) 5 &ears/ .ere #s an E (or" ro%o"#on Ca(#"al Goods 8E CG !.e%eunder .#!. e (or"ers are allo ed "o #%(or" !a(#"al goods 8#n!lud#ng !o%(u"er s&s"e%s

a" !on!ess#onar& !us"o%s du"&, su @e!" "o )ul)#ll%en" o) s(e!#)#ed e (or" o l#ga"#ons/

er$#!e #ndus"r#es en@o& ".e )a!#l#"& o) 9ero #%(or" du"& under ".e E CG s!.e%e

/ # e #se, .os(#"als, a#r !argo, .o"els and o".er "our#s% rela"ed #ndus"r#es/ o)" are un#"s

!an use da"a !o%%un#!a"#on ne" or "o e (or" ".e#r (rodu!"s/

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E PORT 0 IMPORT 1E IM PO IC+-HIGH IGHTS O, E IM PO IC+

.e ne 5 &ear E (or"s and '%(or"s (ol#!& a#%s a" g#$#ng a %a@or ".rus" "o a!!elera"#on

o) 'nd#a=s e (or"s ".roug. res"ru!"ur#ng and re$a%(#ng o) $ar#ous e (or" (ro%o"#on

s!.e%es and #de rang#ng %easures )or s(e!#)#!a"#on o) (ro!edures #". a $#e "o%a #ng ".e% %ore "rans(aren" and eas& "o ad%#n#s"er/

Ge%s I Je eler !.e%e "o (ro%o"e e (or" o) gold @e eller&,#" #s (ro(osed "o #n!rease

".e ou le e#g."age #ll e g#$en "o agro e (or"s #n !al!ula"#ng ".e el#g# #l#"& o) E (or"

,.ouses ,"rad#ng .ouses,e"! /An add#"#onal 1 (e!#al '%(or" #!ense on ".e "o"al $alue

o) e (or"s #ll e g#$en )or e (or" o) )ru#"s ,$ege"a les and )lor#!ul"ure and .or"#!ul"ure

(rodu!"s /

EOK E L un#"s #ll e (er%#""ed "o sell "o sell 50 o) ".e#r ou"(u" #n ".e A on

(a&%en" o) du"& #".ou" #ns#s"en!e on $alue add#"#on/

(e!#al 'n!en"#$es )or E (or" o) ' (rodu!" (rodu!"s )ro% Nor". Eas"ern s"a"es Ne

Mar e"s/ An add#"#onal (e!#al '%(or" #!ense o) 1 on "o"al $alue o) e (or"s .as een

g#$en "o EH H e"! .ere su!. e (or"s o) (rodu!"s )ro% nor". eas"ern "a"es Cons"#"u"e10 or %ore o) ".e "o"al e (or"s %ade/ ou le e#g."age on su!. e (or"s .as een g#$en

)or re!ogn#"#on as EH H H H/ Add#"#onal ' .as also een g#$en )or e (lora"#on

o) ne %ar e"s/ ' on e (or" o) ' (rodu!"s .as een #n!reased )ro% 1 "o 2 /

'n !ase o) s%all s!ale e (or"ers .old#ng ' O 000 ser#es or ' ' O 000 ser#es ual#"&

!er"#)#!a"#on ,".e 3OB $alue o) e (or" #ll no e Rs/ 1 !rores and a o$e dur#ng ".e

(re!ed#ng ".ree l#!ens#ng &ears #ns"ead o) ".e l#%#" o) Rs/5!rore and Rs/2!rore

res(e!"#$el& (res!r# ed )or o".ers /

E (or" rad#ng s"ar rad#ng u(er "ar rad#ng Houses

Earl#er el#g# #l#"& !r#"er#on )or re!ogn#"#on o) E (or" House rad#ng "ar rad#ng

House u(er "ar rad#ng House ased on ".e a$erage annual e (or" (er)or%an!e o) ".e

(re!ed#ng + l#!ens#ng &ears as Rs 10!rores, 50 !rores, 250 !rores and 750 !rores

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res(e!"#$el&/ ee(#ng #n %#nd ".e e (or" "arge" gro ". "o e rea!.ed & ".e "urn o) ".e

!oun"r& "o"al e (or"s ".#s .as no een re$#sed "o Rs 20 !rores, 100 !rores, 500 !rores

and 1500 !rores res(e!"#$el&/

'n!en"#$es "o #%(ro$e ual#"& o) e (or" (rodu!"s ".e ' en"#"le%en" o) e (or"ers .old#ng

' ' O 000 ser#es .as een #n!reased )ro% 2 o) 3OB "o 5 / Nu% er o) no%#na"edagen!#es (er%#""ed "o s"o! gold/ A" (resen" onl& HHEC, B', MM C and C are do#ng

".#s/ .#s #%(ro$e%en" #ll %a e a$a#la le ade ua"e uan"#"& o) gold "o e (or"ers on

re(len#s.%en" as#s or on ou"r#g." (ur!.ase/

Moreo$er, ".e EOK E L un#"s are e#ng (er%#""ed "o sell 10 o) ".e#r ou"(u" #n ".e A

aga#ns" ' on (a&%en" o) du"&/

u"& E e%("#on !.e%e s#gn#)#!an" !.anges .a$e een %ade "o redu!e ".e %ul"#(l#!#"&

o) s!.e%es, #%(ro$e ".e#r a""ra!"#$eness and "o %a e ".e% s#%(le and eas& ad%#n#s"ers/

.e uan"#"& ased ad$an!e l#!ense .as een !on"#nued/

'" .as res"ru!"ured $ar#ous e (or" (ro%o"#on s!.e%es and .as re(la!ed alue Based

Ad$an!e #!ense and ass oo s!.e%e & a ne s!.e%e !alled du"& en"#"le%en"

(ass oo s!.e%e/ Knder ".#s s!.e%e, an e (or"er, on ".e as#s o) no"#)#ed en"#"le%en"

ra"es, #ll e gran"ed du"& !red#"s .#!. #ll allo ".e% "o #%(or" #n(u"s du"& )ree/ He!an %a e use o) ".#s "o #%(or" an& )ree #%(or"a le #"e%/ .e !red#" !an e "rans)erred "o

ano".er (erson u" ".e "rans)er #ll e $al#d #".#n ".e sa%e (or"/

Knder ".e Ad$an!e #!ens#ng !.e%e, ".e (ro!edure .as een )ur".er s#%(l#)#ed /".e

E (or" o l#ga"#on (er#od o) 12 %on".s .as no een e "ended "o 1* %on".s/ 3ur".er

e "ens#on )or 6 %on".s #ll e gran"ed on (a&%en" o) 1 o) ".e $alue o) un)ul)#lled

e (or"s/ .#s #ll redu!e !ons#dera le (a(er or and .arass%en" "o ".e e (or"er/

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2. COMPAN+ PRO,I E

VIJA+A BANK PRO,I E

#@a&a and as )ound on 2+- O!" 1 +1 & la"e r# A/B .e""& and o".er en"er(r#s#ng

)ar%ers #n Mangalore, arna"a a/ .e o @e!"#$e o) ".e )ounders as essen"#all& "o

(ro%o"e an #ng .a #", ".r#)", and en"re(reneurs.#( a%ong ".e )ar%#ng !o%%un#"& o)

a s.#na annada d#s"r#!" #n arna"a a/ .e an s!.eduled an #n 1 5*/

#@a&a Ban s"ead#l& gre #n"o a large all 'nd#a an #". n#ne s%aller an s %erg#ng

#". #" dur#ng ".e 1 6+-6*/ .e !red#" )or ".#s %erger as ell as gro ". goes "o la"e r#/

under Ra% .e""&, .o as ".e ".en !.#e) e e!u"#$e o) ".e an / .e an as

na"#onal#9ed on 15 A(r#l 1 *0/ '" under en" "re%endous !.anges #n ".e (os" l# eral#9e

rad#!al !.anges #n ".e organ#9a"#onal s"ru!"ure (ol#!#es and (rogra%s as ell as #n ".e

%#nd se" o) #"s e%(lo&ees/ A)"er na"#onal#9a"#on, an #ng o(era"#on as graduall&

de!en"ral#9ed/ .e an s.#)"ed #"s 9onal o))#!es "o ".e res(e!"#$e "err#"or#es and ga$e

grea"er ".rus" on !o%(u"er#9a"#on and d#$ers#)#!a"#on/ '" as ne!ess#"a"ed #n order "o

#n!rease #"s rea!. "o ".e (eo(le as ell as #%(le%en"#ng $ar#ous go$ern%en" s!.e%es/

D#". l# eral#9a"#on era se" #n, #n ".e an #ng se!"or #"nessed deregula"#on/ .#s o(ened

u( ne o((or"un#"#es )or #@a& an )or d#$ers#)#!a"#on and gro "./ 'n"rodu!"#on o)

(ruden"#al nor%s #n #n!o%e re!ogn#"#on (ro$#s#on and !a(#"al ade ua!&, "rans(aren!& #n

)#nan!#al re(or"#ng e"!/ .a$e rendered an %ore a!!oun"a le )or (er)or%an!e/ .e an

.#!. .ad "o oo losses #n 1 2- + and 5- 6 on a!!oun" o) s"r#ngen" #n!o%e,

re!ogn#"#on nor%s, "urn ".e "a le #%%ed#a"el& #n 1 6- 7 and .as s"a"ed #%(ro$#ng #"s (er)or%an!e on ".e (ro)#"a #l#"& )ron"/ '" #"nessed a ne" (ro)#" o) 70/7+ !rore #n ".e &ear

end#ng Mar!. 2001 ".e an also su!!ess)ull& %o #l#9ed e u#"& a%oun"#ng "o ru(ees 100

Crore ".roug. an #n#"#al (u l#! o))er#ng #ssue #n 200/ As a resul" o) s.are .old#ng o)

go$ern%en" .as !o%e do n )ro% 1005 "o 72/16 /

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.e an .as u#l" a ne" or .as u#l" a ne" or o) *4+ ran!.es ".a" s(an all 2* s"a"es

and 4 un#on "err#"or#es #n ".e !oun"r&/ .e an e (er"#se e "ends "o ".e (r#%e area o)

!a(#"al %ar e", !or(ora"e an #ng and #ndus"r#al )#nan!e s%all s!ale #ndus"r#es and .#-"e!.

agr#!ul"ure, a (ar" )ro% (ersonal an #ng, )unds "rans)er, o$erseas an #ng and asse"

re!o$er& %anage%en"/

#@a&a an .as ".e .#g.es" nu% er o) ran!.es ".a" o))er s(e!#al#9ed an #ng )or

#ndus"r#al )#nan!e, s%all s!ale #ndus"r#es, agr#!ul"ural8.#-"e!. )#nan!e, !a(#"al %ar e",

!o%%er!#al and (ersonal an #ng, asse"s re!o$er& %anage%en" o$erseas an #ng,

!or(ora"e an #ng, and )unds "rans)er/ 'n l#ne #". (re$a#l#ng "rends ".e an .as een

g#$#ng grea"er ".rus" "o ards "e!.nolog#!al grada"#on o) #"s o(era"#on/ As on Mar!. 200+,

+56 ran!.es .a$e een !o%(u"er#9ed !o$er#ng 7*/26 o) ".e an s "o"al us#ness/

Bes#des ".#s ".e an .as also #ns"alled %an& #"e%s a" )e o) #"s ran!.es/ Real#9#ng

!us"o%ers= !ons"an"l& e$ol$#ng Id#$erse needs ".e an .as d#$ers#)#ed "oo/ En"er#ng

se$eral ne areas su!. as !red#" !ard, %er!.an" an #ng, .#g.er (ur!.ase, leas#ng and

ele!"ron#! re%#""an!e ser$#!es/

#@a&a an a%ong ".e )e an s #n ".e !oun"r& "o "a e a (r#n!#(le %e% ers.#( o) $#sa

#n"erna"#onal and %as"er !ard #n"erna"#onal/ .e dr#$#ng )or!e e.#nd #@a&a an s e$er&

a!.#e$e%en" .as een #"s, 11,72+ s"rong ded#!a"ed or )or!e ea!. ran!. (ro$#des

e))e!"#$e and s#gn#)#!an"l& !on"r# u"es "o ".e gro ". o) ".e #nd#$#dual and ".e na"#on/

MANAGEMENT

oda&, lea$#ng u( "o ".e #deal o) ".e )ound#ng $#s#onar#es #s ".e %anage%en" a" ".e

#@a&a an ".e %anage%en" #n!ludes ded#!a"ed (ro)ess#onals .o r#ng #". ".e% a

!ons#dera le a%oun" o) e (er"#se and e (er#en!e #n an #ng #ndus"r&/ Curren"l& ".e

an s oard o) d#re!"ors !ons#s"s o) 7 d#re!"ors/ .e an .as a ".ree-"#er organ#9a"#on

s"ru!"ure .ead o))#!e, reg#onal o))#!e and #"s ran!.es/ .e .ead o))#!e o) #"s .os" $ar#ous

)un!"#onal de(ar"%en"s ".a" are #ns"ru%en"al #n (ol#!& )or%ula"#on and %on#"or#ng o)

(er)or%an!e o) ".e reg#ons "oda& ".ere are )our general %angers a" ".e .ead o))#!e #n

!.arge o) d#))eren" )un!"#onal areas/

E PORT AN) IMPORT OPERATIONS

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#@a&a an .as een .andl#ng )ore#gn e !.ange us#ness s#n!e 1 71/ As usual #n an&

us#ness ".e#r )ore#gn e !.ange us#ness .as een su @e!" "o !&!l#!al (.ases on ".e

(er#ods o) gro ". and s"agna"#on/ "#ll ".e& .a$e een a le "o (u" u( a sa"#s)a!"or& s.o

and !on"r# u"ed "o ".e o$erall gro "./ #@a&a an .as o$er +6 ran!.es ".a" (ro$#de

s(e!#al#9ed )ore#gn e !.ange ser$#!es/ #@a&a an .as (er)or%ed !red#"a l&, dur#ng ".e

&ear 2002-0+ ".e &ear .as een ".e (ro)#"a le &ear )or ".e an s#n!e #"s #n!e("#on #n1 +1/

VIJA+A BANK ,ORE BRANCHES 0 ,ORE OPERATION

,ore$ 3r n%4es

#@a&a an .as een .andl#ng )ore#gn e !.ange us#ness s#n!e 1 71/ As #s usual #n an&

us#ness ".e#r )ore#gn e !.ange us#ness .as een su @e!" "o !&!l#!al (.ases o) ".e

(er#ods o) gro ". and s"agna"#on/ "#ll ".e& .a$e een a le "o (u" u( a sa"#s)a!"or& s.o

and !on"r# u"ed "o ".e o$erall gro "./ #@a&a an .as o$er +6 ran!.es ".a" (ro$#de

s(e!#al#9ed )ore#gn e !.ange ser$#!es/

.ere #s onl& one ran!. #n Bangalore (ro$#d#ng ser$#!es "o !us"o%ers .o .a$e good

s.are o) #%(or" or e (or" a!"#$#"& #n ".e#r us#ness/

A*THORI5E) )EA ERS 6A)S7

Au".or#9ed dealers are an s and )#nan!#al #ns"#"u"#on au".or#9ed & RB' "o deal #n

)ore#gn e !.ange/ Cer"a#n )#nan!#al #ns"#"u"#ons l# e E?'M an .a$e g#$en res"r#!"ed

au".or#9ed "o deal #n s(e!#)#! )ore#gn e !.ange "ransa!"#ons/ A" "our#s" des"#na"#on so%e

agen!#es are au".or#9ed "o sell and )ore#gn !urren!& ro"es I "ra$eller !.e ues/ .e& are

!alled %one& !.angers/ o%e MCs are allo ed "o onl& en !as. )ore#gn !urren!& no"es

and "ra$eller !.e ues/ .e& are re)erred "o as res"r#!"ed MCs ".e ran!.es o) ".e an )or

".e (ur(oses o) )ore#gn e !.ange us#ness are !lass#)#ed as )ollo s/

CA EGOR A=

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A ran!., .#!. %a#n"a#ns e !.ange (os#"#on and a!!oun"s #n )ore#gn !urren!#es a road

)or ".e (ur(ose, on e.al) o) #"sel) and o".er ran!.es, us an A= !a"egor& ran!./ 'n

#@a&a an , ".ere #s onl& one A= !a"egor& ran!., ".e )ore#gn and "reasur& %anage%en"

d#$#s#on 8) I "%d a" Mu% a#/ 3 I "%d %a#n"a#ns e !.ange (os#"#on #n $ar#ous

!urren!#es, (ro$#des e !.ange ra"es )or %er!.an" "ransa!"#ons, .andles deal#ng o(era"#onsand !arr#es ou" re!on!#l#a"#on )ore#gn a!!oun"s, #n$es"%en"s as ell as orro #ngs #n

do%es"#! #n"erna"#onal %ar e"s/

CA EGOR B=

Bran!.es o))#!es, .#!. are au".or#9ed "o all "&(es o) )ore#gn e !.ange us#ness u"

#".ou" %a#n"a#n#ng e !.ange (os#"#on )ore#gn !urren!& a!!oun"s a road #n ".e#r o n

na%e, are !lass#)#ed as B= !a"egor& ran!./ .e e !.ange (os#"#on ar#s#ng ou" o) ".e

)ore#gn e !.ange "ransa!"#ons .andled & ".ese ran!.es are "o e re(or"ed "o and

!o$ered ".roug. and A= !a"egor& ran!./ u!. ran!.es o))#!es are also re)erred "o as

)ore#gn e !.ange des#gna"ed ran!.es/

CA EGOR C

All ran!.es .#!. are ne#".er !lass#)#ed as A= nor B= !a"egor& ran!.es o))#!e s.ould (u" ".roug. #"s )ore#gn e !.ange "ransa!"#on on e.al) o) #"s !us"o%ers, ".roug. a B=

!a"egor& ran!. o))#!e "o .#!. #" #s a""a!.ed "o ased on ".e na"ure $olu%e o) ".e#r

us#ness, a l#%#"ed au".or#"& "o en"er"a#n s(e!#)#ed "&(es o) )ore#gn e !.ange us#ness

%a& e gran"ed "o C= !a"egor& ran!.es on re ues" and %er#"s and ased on ".e

re!o%%enda"#ons o) ".e !on!erned RO/ E$en su!. "ransa!"#ons are "o e rou"ed ".roug. a

B= !a"egor& ran!. )or )ur".er (ro!ess#ng/

AGENC+ ARRANGEMENTS8

.e need "o es"a l#s. an agen!& rela"#ons.#( #". an s #n o".er !oun"r#es ar#ses due "o

".e )a!" ".a" an s do no" .a$e #"s o n ran!.es #n all ".e !oun"r#es/ .ere )ore "o

)a!#l#"#es s%oo". )lo o) #n"erna"#onal "ransa!"#ons #". $ar#ous !oun"r#es, arrange%en"s

are %ade #". an s #n $ar#ous (ar" o) ".e orld "o .andle us#ness or#g#na"ed )ro%

'nd#an an s and "o e !on!luded #n ano".er !oun"r& or us#ness rou"ed )ro% o".er

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!oun"r#es "o 'nd#a/ .ese arrange%en"s e" een an s are no n as agen!&

arrange%en"s I ".e an #". an arrange%en" #s !on!luded #s !alled our ;!orres(onden">?

#s#on %ar!. 200+ "o %ar!. 2006 #s .#g.l#g."ed #n ".e "a le elo

B*SINESS P AN

P rti%ul rs M r%4

(>>2

M r%4

(>>9

M r%4

(>>@ Nu% er o) ran!.es *4+ 25 1000Aggrega"e de(os#"s 17500 22000 2*000Gross !red#" *500 11500 15000

Ne" N A=s as "o ne" !red#" 4/2 2/* 1/6 Ne" (ro)#"s 200 275 400 Nu% er o) ran!.es "o e

Co%(u"er#9ed

575 02 1000

A$erage us#ness e%(lo&ee 1/ 7 2/52 +/2

Ma@or s"ra"eg#es are:

o e (and ".e ne" or ".roug. 'nd#a so ".a" ".e !o%(an& !an %a#n"a#n ".e

nu% er one (os#"#on #n ".e !o%(an&/

o .a$e #n!reased !l#en" ase & !ondu!"#ng %ore and %ore a areness !a%(a#gns

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o (ro$#de d#$ers#)#ed ser$#!es "o ".e !l#en"s

'n!rease ".e nu% er o) ran!.es #n ".e !oun"r& as ell as ou" s#de 'nd#a

'n!rease ".e nu% er o) !o%(u"er#9ed ran!.es/

'n!rease a$erage us#ness (er e%(lo&ee/

Ado(" ne "e!.nolog& I #n!rease ".e no/ o) ".e A M=s/

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STR*CT*RE

Board o) #re!"ors

Co%%#""ee o) #re!"ors

Manag#ng #re!"or

E e!u"#$e #!e res#den"

en#or #!e res#den" #!e res#den" 8)#n en#or #!e res#den"

e!re"ar#al Ass#s"an"s

O))#!ers

Jun#or O))#!ers

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ST+ E

Ha$#ng a (ar"#!#(a"#$e #nd o) leaders.#( s"&le ".e "o( %anage%en" o) #@a&a Ban

en!ourages ".e #n#"#a"#$es )ro% ".e e%(lo&ees and "r#es "o #%(le%en" ".e%/

'n"era!"#on sess#ons are !ondu!"ed a" regular #n"er$als/ Co%(an& .as )ree u( ard

!o%%un#!a"#on !.annel/

SKI S8

#@a&a an .a$e !on"#nued (.ase o) e%(.as#s on en.an!#ng ".e s #lls and

!a(a #l#"#es o) e%(lo&ees and on #%(or"#ng "ra#n#ng )or %ee"#ng !us"o%er

re u#re%en"s/ .e (ro!esses )or en.an!#ng ".e s #lls ere )ur".er rede)#ned "o su#" ".e

s(e!#)#! needs o) ".e organ#9a"#on and also "o !on"r# u"e "o ".e e%(lo&ees all round

de$elo(%en" and gro "./ As #@a&a Ban #s one o) ".e oldes" an s, ".e %anagers are

e (er#en!ed enoug. #". s #lls and "alen"s "o (ro$#de e""er ser$#!es "o !us"o%ers #n a

s.or" (er#od o) "#%e/ .e %anagers are e))#!#en" enoug. "o ge" ".roug. uer#es !#"ed & !us"o%ers/

STA,,8

Re!ru#"#ng (ol#!& o) ".e an #s done ".roug. r#""en "es", oral #n"er$#e s, "ra#n#ng

(ro!ess, and al -#n #n"er$#e s/ #@a&a (re)ers ;R#g." (erson a" r#g." "#%e #n r#g."

(la!e

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SHARE) VA *E8

As #@a&a an #s one o) ".e )e an s ".a" #s go#ng )or ".e )ollo #ng $alues:

Cus"o%er sa"#s)a!"#on

Pu#! and e""er ser$#!es Add#ng ual#"& "o l#)e

Core "rans(aren!&

Hones" #n or

o&al "o ".e !us"o%ers/

@. Rese r%4 "esi!n

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E (or" and #%(or" (la&s (#$o"al role #n ".e e!ono%#! de$elo(%en" o) ".e !oun"r&/ 'n ".e

l# eral#9ed e!ono%#! s!enar#o ".e need "o earn )ore#gn e !.ange #s regarded as ".e

ana!ea o) ".e #ll-.eal". o) ".e 'nd#an e!ono%#!

'n 'nd#a )#nan!e #s e#ng (ro$#ded "o e (or"ers a" res.#(%en" and (os"-s.#(%en" o)

goods /.en!e ".e an s .a$e a grea"er role #n e (or" )#nan!#ng/ .e go$ern%en" o) 'nd#a.as re!ogn#9ed ".e need )or ".e ass#s"an!e and .en!e #n 1 6* #"sel) ".e& #n"rodu!ed a

s!.e%e )or an )#nan!e )or e (or" se!"or no n as ;e (or" !red#" #n"eres" su s#d&

s!.e%e< "o ena le an s "o )ollo un#)or% (ro!edures /".e go$ern%en" o) 'nd#a .as een

)ur".er s"reng".ened e (or" )#nan!#ng & #%(le%en"#ng (ol#!#es ".roug. E?'M an , as

(er ".e gu#del#nes #ssued & ".e RB'/

.#s #s a s"ud& .#!. a#%s a" (ro #ng #n"o ".e (ro!edures ".a" an s .a$e "o )ollo #n

order "o de(lo& e (or" )#nan!e e))#!#en"l& /Co%%od#"& #se da"a on e (or"s !learl& r#ngs

ou" ".e role o) e "ernal de%and #n s.a(#ng 'nd#a=s e (or" (er)or%an!e /Bu" s"#ll #) ".e

do%es"#! (ol#!#es are )a$ora le ".en ".e e (or"ers !an a$a#l e""er )a!#l#"#es/

'" !ould e or". .#le "o "a e a .ard loo #n"o ".e s&s"e% and (ro!edures and .a$e a

e""er unders"and#ng o) ".e go$ern%en"s and o".er organ#9a"#ons (ol#!#es on e (or" / .e

E?'M (ol#!& ".a" #s )or%ula"ed )or e$er& )#$e &ears #s done "o )a$or e (or"s and #%(or"s

and r#ng #n %ore )ore#gn !urren!&/ 3ore#gn e !.ange dealers asso!#a"#on o) 'nd#a also.el(s #n )or%ula"#ng (ol#!#es and regula"#ng ".e%/

?. Pro ose" Met4o"olo!'

; ra!"#!e %a es a %an (er)e!"

do!u%en"s no" su %#""ed #".#n ".e l#%#"a"#on (er#od o) s(e!#)#ed

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#n ".e C or #".#n 21 da&s )or% da"e o) s.#(%en"/ 8Ar" 4+ o)

KC C

d/ ra #ng #n e !ess o) C

e/ .#(%en"s %ade )or% and s.#((ed "o (or"s o".er ".an ".ose

s"#(ula"e #n C/

)/ ar"#al s.#(%en"s "ranss.#(%en"s e))e!"ed, no" au".or#9ed & ".eC/

g/ B#ll o) lad#ng AEB no" (ro(erl& s#gned no" (ro(erl& da"ed and no"

(ro(erl& s"a%(ed/ Al"era"#on #) an&, no" (ro(erl& au".en"#!a"ed/

./ resen"a"#on o) #nsu))#!#en" and or #n!o%(le"e se" o) B /

#/ resen"a"#on o) !lause B#ll o) ad#ng Re!e#$ed )or s.#(%en" #ll o)

lad#ng s.or" 3or% B#ll o) ad#ng !.ar"er (ar"& B#ll o) ad#ng

.en no" (er%#""ed #n ".e C/

@/ resen"a"#on o) B#ll o) ad#ng #n .#!. o Board= endorse%en" no"

da"ed/

/ ar#a"#on #n ".e e#g." #n #n$o#!e and e#g." l#s" ad o".er

do!u%en"s/

l/ resen"a"#on o) do!u%en"s, l# e #n$o#!e, (a! #ng l#s", e#g." l#s",

#nsuran!e !er"#)#!a"e (ol#!&, !er"#)#!a"e #) or#g#n, #ns(e!"#on

!er"#)#!a"e, B#ll o) ad#ng ADB ".a", are #n!ons#s"en" #". ea!.

o".er/%/ 'nade ua"e o) #nsuran!e (ol#!& !er"#)#!a"e/

n/ resen"a"#on o) #nsuran!e do!u%en"s uns#gned, unda"ed,

uns"a%(ed and dra n #n a d#))eren" !urren!& o".er ".an ".e

!urren!& o) ".e C/

o/ es!r#("#on o) goods #n!lud#ng !.arges #n ".e #n$o#!e (resen"ed

no" au".or#9ed & C/

(/ 'n!o%(le"e or #n!orre!" ra)" B#lls o) E !.ange/

/ 'nsu))#!#en" nu% er o) !o(#es o) $ar#ous do!u%en"s as !alled )or #n

".e C/

r/ Non-su %#ss#on o) !er"a#n do!u%en"s as !alled )or #n ".e C/

.e a o$e d#s!re(an!#es, .#!. are !o%%onl& )ound, s.ould e

!ons#dered as de$#a"#on )or% ".e "er%s and !ond#"#on o) ".e C and ".e

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o(en#ng #ssu#ng an %a& re)use do!u%en"s e$en #) ".e d#s!re(an!#es

are no" %a"er#all& s#gn#)#!an"/

27 A"& n%e ! inst e$ ort 3ills sent on %olle%tion 3 sis8

A" "#%es, ".e e (or"er %#g." .a$e )ull& u"#l#9ed .#s #lls l#%#" and #n !er"a#n !ases ".e #lls

dra n under C %a& .a$e so%e d#s!re(an!#es/ 'n su!. !ases ".e #lls #ll e sen" on

!olle!"#on ases/ 'n so%e !ases, ".e e (or"er .#%sel) %a& re ues" )or send#ng ".e #lls on

!olle!"#on ases an"#!#(a"#ng ".e s"reng".en#ng o) ".e )ore#gn !urren!&/ Ban s %a& allo

ad$an!e aga#ns" ".ese !olle!"#on #lls "o and e (or"er/ Con!ess#$e ra"e o) #n"eres" !an e

!.ange )or ".#s ad$an!e #n"o ".e "ans#es (er#od #n ".e !ase o) #ll "rans#" (er#od U

Ksan!e (er#odU gra!e (er#od 8#) an& #n ".e !ase o) usan!e #lls/ Be&ond ".#s (er#od, ".e

#n"eres" ra"e #ll e su @e!" "o ".e $ar#ous ra"es (res!r# ed & RB' de(end#ng u(on ".e

usan!e o) ".e #ll/

4 A"& n%e ! inst !oo"s sent on %onsi!nment 3 sis8

Goods e (or"ed on !ons#gn%en" as#s a" ".e r#s o) ".e e (or"er )or sale a road/

E$en"ual re%#""an!e o) sale (ro!eeds #ll e %ade & agen" !ons#gnee/ .e o$erseas ran!. !orres(onden" o) ".e an #ll e #ns"ru!"ed "o del#$er ".e do!u%en"s aga#ns"

rus" Re!e#("/ Ad$an!e gran"ed aga#ns" ".e e (or" #ll !o$er#ng goods sen" on

!ons#gn%en" as#s ould e l# u#da"ed )ro% re%#""an!e o) ".e sale (ro!eeds #".#n s#

%on".s )or% ".e da"e o) s.#(%en", !on)or%#ng "o ".e E !.ange Con"rol Regula"#ons/ 'n

".e !ase o) e (or"s ".roug. a((ro$ed 'nd#an o ned are.ouses a road, ".e "#%e l#%#" )or

real#9a"#on ould e 15 %on".s/

5 A"& n%e ! inst *n-"r n 3 l n%es :

'n !er"a#n, l#ne o) e (or" "rade, #" #s ".e (ra!"#!e o) ".e e (or"er "o lea$e a (ar" o) ".e

%oun" as un-dra n alan!e/ Ad@us"%en" #ll e %a #ng & ".e u&er )or d#))eren!e #n

De#g.", ual#"& e"!/ As!er"a#ned a)"er arr#$al and #ns(e!"#on or anal&s#s o) ".e goods

au".or#9ed dealers !an .andle su!. #lls (ro$#ded ".e undra n alan!e #s #n !on)or%#"&

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#". ".e nor%all& le$el #) alan!e le)" un-dra n #n ".e (ar"#!ular l#ne o) e (or" "rade "o a

%a #%u% o) 10 o) ".e )ull e (or" "rade/

.e e (or"er s.ould g#$e an under"a #ng a" ".a" .e ould surrender a!!oun" )or ".e

alan!e o) ".e (ro!eeds #".#n ".e (er#od (res!r# ed )or real#9a"#on/ A (ro(er )ollo -u(

s.ould e %ade )or ".e real#9a"#on o) ".e undra n alan!e/ .e au".or#9ed dealer #llre"a#n ".e du(l#!a"e !o(& o) ".e GR )or% "#ll su!. "#%e ".e )ull e (or" (ro!ess are

real#9ed/

Ad$an!e aga#ns" un-dra n alan!e !an e %ade a" a !on!ess#$e ra"e o) #n"eres" )or a

%a #%u% (er#od o) 0 da&s/ ro(er %arg#n s.ould e %a#n"a#ned )or ".e ad$an!e, as

".ere #s (oss# #l#"& o) so%e dedu!"#on ou" o) ".e un-dra n alan!e )or ual#"& !la#%

redu!"#on #n e#g." e"!/

6 A"& n%e ! inst Re%ei& 3le from Go&ernment su%4 s )ut' )r 3 %=8

D.en ".e do%es"#! !os" o) (rodu!"#on !er"a#n goods are .#g.er #n rela"#on "o #n"erna"#onal

(r#!e, ".e e (or"er %a& ge" su((or" )or% ".e go$ern%en" so ".a" .e %a& !o%(e"e

e))e!"#$el& #n ".e o$erseas %ar e"/ .e go$ern%en" o) 'nd#a and o".er agen!#es (ro$#des

e (or" #n!en"#$es under ".e E (or" (ro%o"#on !.e%e/ .#s !an onl& e #n ".e )or% o)

re)und o) e !#se and !us"o%s du"& no n as u"& ra a! /

Bands #ll gran" ad$an!e "o e (or"ers aga#ns" ".e#r en"#"le%en"s under a o$e !a"egor& a"

lo er ra"e o) #n"eres" )or a %a #%u% (er#od o) 0 da&s/ .ese ad$an!es e#ng #n ".e

na"ure unse!ured ad$an!e !anno" e gran"ed #n #sola"#on ad !ould e gran" onl& #) all

o".er "&(es o) ".e e (or" )#an!V are e "ended "o ".e e (or"er & ".e sa%e an

A)"er ".e s.#(%en", ".e e (or"er #ll lodge ".e#r !la#% su((or"ed #". rele$an" (a(er and

do!u%en"s "o !us"o%s Au".or#"#es/ .e !us"o%s #ll (ro!ess ".e !la#% and d#s urse ".e

el#g# le a%oun"/

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.ese ad$an!es ould e l# u#da"ed ou" o) ".e se""le%en" o) !la#%s lodged & ".e

e (or"ers/ '" s.ould e ensured ".a" ".e an #s au".or#9ed "o re!e#$e ".e !la#% a%oun"

d#re!"l& )or% ".e !on!erned go$ern%en" au".or#"#es/

Perio" of ,in n%e8

E (or" #lls !an e dra n e#".er on as#s or on A as#s de(end#ng u(on ".e !on"ra!"

e" een ".e e (or"er and ".e o$erseas u&er/ Con!ess#onal ra"e o) #n"eres" on ".#s

ad$an!e #ll de(end u(on ".e na"ure o) #ll/

') ".e #ll #s dra n on as#s, !on!ess#onal ra"e o) #n"eres" #ll e )or a (er#od un"o

nor%al "rans#" (er#od 8N

A #lls 8Ksan!e #lls !an e dra n as )ollo s:

# 0 da&s )or% ".e da"e o) s.#(%en" da"e o) dra)"

## 0 da&s )ro% da"e o) a!!e("an!e

'n !ase o) usan!e #lls dra n )ro% ".e da"e o) s.#(%en" #ll o) lad#ng #ll o) lad#ng #ll o)

e !.ange dra)", ".e due da"e !an e de!#de & ".e e (or"er=s an s# n!e ".e de"a#ls ons.#(%en" da"e or #ll o) e !.ange da"e #ll e read#l& a$a#la le and ".e an .as "o arr#$e

a" ".e due da"e/

'n !ase o) usan!e #lls .ere due da"e .as "o e arr#$ed a" )or% da"e o) a!!e("an!e, #n

add#"#on "o ".e usan!e, nor%al "rans#" (er#od #ll e added and No"#onal due da"e

'n o". !ases !on!ess#onal ra"e o) #n"eres" #ll e a$a#la le "o ".e e (or"er un"o ".e ue

da"e and ".e No"#onal due da"e/ 'n an& !ase ".e !on!ess#onal ra"e o) #n"eres" !anno"

e !eed 1*0 da&s )ro% da"e o) s.#(%en"/

MA IM*M E IGIB E ,INANCE

'n !ase o) (os" s.#(%en" ad$an!es, nor%all& no %arg#n #s %a#n"a#ned )or #lls dra n

under Cs/ Onl& #n !ase o) e (or" #lls (ur!.ased aga#ns" !on"ra!" )#r% orders,

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de(end#ng u(on ".e add#"#onal se!ur#"& a$a#la le, so%e an s (res!r# e !er"a#n a%oun" o)

%arg#n/

E,,ECTIVE )ATE O, PA+MENT O, AN E PORT BI

'n !ase o) )ore#gn !urren!& #lls da"e o) !red#" #n ".e an =s nos"ro a!!oun" and #n !ase o)

Ru(ee #lls ".e da"e o) de #" #n ".e os"ro a!!oun" #ll e "a en as ".e e))e!"#$e da"e o)

real#9a"#on o) an e (or" #ll/

E$tension of time limit8

') ".e e (or" #ll #s no" real#9ed #".#n 1*0 da&s )or% ".e da"e o) s.#(%en" ".e e (or"er

s.ould a((l& )or e "ens#on "o Reser$e Ban #n ".e (res!r# ed )or%a" ; E ?< ".roug. ".e

'n"eres" ra"e on (os"-s.#(%en" )#nan!e:

#7 Ru ee Cre"it

Aga#ns" / / #lls

1/)or "rans#" (er#od8N

2/ Be&ond "rans#" (er#od/

R-+/5F11/0-+/5F7/5

RU2/0F11/0U2/0F1+/0Aga#ns" unsan!e #lls- u( "o no"#onal due

da"e !o%(r#s#ng o) N , usan!e er#od as

a((l#!a le a!"ual due da"e, .#!.e$er #s

earl#er

A/ 3or )#rs" 0 da&s/

B/ 3or (er#od e&ond 0 da&s u" u( "o

s# %on".s )ro% ".e da"e o)

R-+/5F11/0-+/5F7/5

R-1/0F11/0-1/0F10/0

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s.#(%en"/

C/ 3or (er#od e&ond s# %on".s )ro%

".e da"e o) s.#(%en"/

R-2/0F11/0U2/0F1+/0

O".er (os"-s.#(%en" ad$an!es aga#ns"

#n!en"#$es re!e#$a les )ro% go$ern%en"

and !o$ered & ECGC guaran"ees

undra n alan!es re"en"#on ,%one& 8)or

su((l& (or"#on onl& (a&a le #".#n one

&ear )ro% ".e da"es o) s.#(%en" du"& dra

a! re!e#$a le8)#nan!e o".er #se ".an

du"& dra a! !red#" s!.e%e-1 76a /3or 3#rs" 0 da&s

/ Be&ond 0 da&s

R-+/5F11/0-+/5F7/5

RU2/0F11/0U2/0F1+

(7 ,orei!n %urren%' %re"it

Cr'st lli tion of o&er"ue e$ ort 3ills8

E (or"ers are l#a le )or ".e re(a"r#a"#on o) (ro!eeds o) ".e e (or" #lls

nego"#a"ed (ur!.ased d#s!oun"ed or sen" )or !olle!"#on & ".e Au".or#9ed ealers/

Aga#ns" #lls usan!e #lls

a/ On de%ands #lls )or "rans#"

(er#od8as s(e!#)#ed & 3E A'

No" e !eed#ng 0/75 o$er

'BOR EKR'BOR EKR' 'BOR Ksan!e #lls 8)or "o"al (er#od !o%(r#s#ng

usan!e (er#od o) e (or" #lls / K( "o s#

%on".s )ro% ".e da"e o) s.#(%en"/

No" e !eed#ng 0/75 o$er

'BOR EKR'BOR EKRO' 'BOR C/ E (or" #lls 8dea%end or usan!e

Real#9ed a)"er due da"e u" u( "o da"e o)

!r&s"all#9a"#on

Ra"e as (er o". a o$e (lus 2/0

d )or #lls !r&s"all#9ed 8as (er 3EEA

rules

'n"eres" "o e !.arged )ro% ".e da"e o) ".e

ad$an!e as a((l#!a le "o (os"- s.#(%en"

ru(ee !red#"

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Au".or#9ed ealers s.ould "a e #n"o a!!oun" ".e e !.ange r#s #n.eren" #n an un(a#d

e (or" #ll nego"#a"ed (ur!.ased d#s!oun"ed and "rans)er ".e e !.ange r#s "o ".e

e (or"er #ll !r&s"all#9#ng ".e )ore#gn !urren!& l#a #l#"& #n"o ru(ee l#a #l#"&, on ".e +0".

da& a)"er no"#onal due da"e #n !ase o) un(a#d unsan!e #lls/ 'n !ase ".e +0 ". da& .a((ens

"o e a .ol#da& or a"urda&, ".e e (or" #ll s.all e !r&s"all#9ed on ".e ne " or #ng

da&/

D.ere ".e a!"ual due da"e #s ad$#sed & ".e )ore#gn !orres(onden" a)"er ".e no"#onal

due da"e .as een arr#$ed a", #" #ll e #n order )or an s "o !r&s"all#9e ".e #ll on ".e

+0". da& a)"er ".e a!"ual due da"e #n ".e $en" o) non (a&%en"/

Ho e$er, ".e #ll %a& e !r&s"all#9ed & ".e Au".or#9ed ealers e)ore ".e sa#d

(er#od o) +0 ". da& #". s(e!#)#! unders"and#ng and r#""en re ues" )or% ".e !us"o%er/

3or !r&s"all#9a"#on #n"o Ru(ee l#a #l#"& ".e Au".or#9ed ealer s.all a((l& ".e read&

sell#ng ra"e o) e !.ange rul#ng on ".e da"e o) !r&s"all#9a"#on or ".e or#g#nal #ll

ung ra"e .#!. e$er #s .#g.er/

A)"er re!e#(" o) ad$#!e or real#9a"#on, ".e Au".or#9ed ealers #ll ad@us" ".e Ru(ee

l#a #l#"& on ".e #ll !r&s"all#9ed as a o$e & a((lng ".e ung ra"e o) e !.ange or

".e !on"ra!"ed ra"e #n !ase a )or ard !on"ra!" .ad een oo ed & ".e !us"o%er a)"er!r&s"all#9a"#on/ An& d#))eren!e s.all e re!o$ered )ro% (a#d "o ".e !us"o%er/

P 'ment of ECGC remium8

Knder ECGC=s .ole urno$er os" s.#(%en" Guaran"ee an !an !o$er o". ".e#r

!on"ra!" #lls and C #lls, so%e an s .a$e !o$ered onl& ".e#r !on"ra!" #lls/

re%#u% #ll de(end u(on ".e "&(e o) !o$erage/ .e an a sor s !os" o) (re%#u%

".e%sel$es and no" e ".e e (or"er #n $#e o) ".e )a!" ".a" ".e (os"-s.#(%en"

guaran"ee #s %a#nl& #n"ended "o ene)#" ".e an s aga#ns" ".e e (or"er=s )a#lure/

a&%en" o) !o%(ensa"#on "o e (or"ers #n res(e!" o) dela&ed !red#" o) e (or" (ro!eeds:

Bands are re u#red "o (a& #n"eres" "o ".e e (or"er as #nd#!a"ed #n 3E A' !#r!ular

No/2 2 da"e 1+". A(r#l 1 2 #".ou" a#"#ng )or a de%and )ro% ".e e (or"er, #n

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res(e!" o) dela& #n a))ord#ng !red#" #n !ase .ere !red#" ad$#!e .a$e een re!e#$ed

!on"a#n#ng all re u#red #n)or%a"#on/

Ne s%4eme of e$ ort fin n%in!

Red#s!oun"#ng o) E (or" B#lls a road 8EBR :.#s )a!#l#"& #ll e an add#"#onal #ndo a$a#la le "o e (or"er along #". ".e

e #s"#ng ru(ee )#nan!#ng s!.e%es "o an e (or"er a" (os"-s.#(%en" s"age ".#s )a!#l#"&

#ll e a$a#la le #n all !on$er"# le !urren!#es/ .e s!.e%e #ll !o$er e (or" #lls

un"o 1*0 da&s )ro% ".e da"e o) s.#(%en" 8#n!lus#$e o) nor%al "rans#" (er#od and gra!e

(er#od /

.e s!.e%e en$#sages ads red#s!oun"#ng ".e e (or" #lls #n o$erseas %ar e"s &

%a #ng arrange%en"s #". an o$erseas agen!& an & a& o) a l#ne o) !red#" or

an er=s a!!e("an!e )a!#l#"& or an& o".er s#%#lar )a!#l#"& a" ra"es l# ed "o ondon 'n"er

Ban O))ered 3a"e )or s# %on".s/ r#or (er%#ss#on o) ".e Reser$e Ban #ll no" e

re u#re )or arrang#ng ".e red#s!oun"#ng )a!#l#"& a road as long as ".e s(read )or

red#s!oun"#ng #". re!ourse= as#s ad 1/5 #n ".e !ase o) #".ou" re!ourse= )a!#l#"&,

(read, .o e$er, s.ould e e !lus#$e o) an& #"..old#ng "a / 'n all o".er !ases, ".e

Reser$e Ban =s (er%#ss#on #ll e needed/

'n o".er ords an s are allo ed a s(read no" e !eed#ng one (er!en" o$er ".ered#s!oun" ra"e/ .e e))e!"#$e !o"8e !lud#ng #"..old#ng "a "o ".e e (or"ers #ll

".ere)ore, no" e !eed 2 (er!en" and 2/5 (er!en" o$er s# %on".s 'BOR 8)or 'nd#an

Ban s no" .a$#ng o$erseas ".e s(read #ll 21 2 I + res(e!"#$el& #n res(e!" o)

#". re!ourse )a!#l#"&= res(e!"#$el&/

'n !ase o) red#s!oun"#ng o) e (or" #lls (% #".ou" re!ourse= as#s ".e !red#" l#%#"s o)

e (or"ers #ll e res"ored #%%ed#a"el&/ Ads .a$e also ee (er%#""ed "o u"#l#9e ".e on

s.ore )ore#gn e !.ange )und a$a#la le #". ".e% & a& o) alan!e #n E !.ange Earner

3ore#gn Curren!& a!!oun"s 8EE3C

Res#den" 3ore#gn Curren!& A!!oun" and 3ore#gn Curren!& 8non-res#den" a!!oun"

8 an s s!.e%e/

E (or"ers !an also d#re!"l& arrange )or red#s!oun"#ng )a!#l#"#es a road #".ou" (r#or

(er%#ss#on )or% ".e Reser$e Ban (ro$#ded ".e s(read s"#(ula"#on %en"#oned #n ".e

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a o$e (aragra(. are ad.ered "o/ .e e (or"ers #ll .o e$er, e re u#red "o arrange ".e

)a!#l#"& ".roug. a des#gna"ed ran!. o) an au".or#9ed dealer/

O tion of t4e e$ orters

No e (or"ers .a$e go" ".e )ollo #ng o("#ons:

A / "o a$a#l o) (re-s.#(%en" Cred#" and (os"-s.#(%en" #n ru(ees/

o a$a#l (re-s.#(%en" #n Ru(ees and (os"- s.#(%en" #n ".e )or% o) red#s!oun"#ng

o) e (or" #lls #n )ore#gn !urren!&/

! / o a$a#l (re-s.#(%en" #n )ore#gn !urren!&8 C3C and a$a#l (os" as e (or" #lls

red#s!oun"#ng s!.e%e #n )ore#gn !urren!& 8EBR

E (or"er #ll "r& "o a$a#l )a!#l#"& #n a deno%#na"ed )ore#gn !urren!& de(end#ng u(on

".e (re%#u% d#s!oun" )a!"or o) ".e !urren!& #n .#!. .e .as "o e (osure/

#>. IMPORT ,INANCE

Goods or ser$#!es o "a#ned or !onsu%("#on or #ndus"r#al use & 'nd#an )ro% ano".er

!oun"r& #s de)#ned as #%(or"s or #%(or" "rade/ '%(or" "rade #s regula"ed & ".e #re!"ora"e

General o) )ore#gn rade 8 G3 and #"s reg#onal o))#!es, )un!"#on#ng under ".e M#n#s"r&

o) !o%%er!e and #ndus"r#es, e(ar"%en" o) Co%%er!e, Go$ern%en" o) 'nd#a/ ol#!#es

and (ro!edure re u#red "o e )ollo ed )or #%(or"s #n"o 'nd#a are announ!ed & ".e G3

)ro% "#%e "o "#%e/ D.#le ".e e !.ange !on"r ol #s regula"ed & Reser$e Ban o) 'nd#a

".roug. Co%%er!#al Ban s au".or#9ed "o deal #n )ore#gn e !.ange 8 no n as Ads /Au".or#9ed dealers %a&, ".ere)ore, sell )ore#gn e !.ange 8 no n as Ads / Au".or#9ed

dealers %a&, ".ere)ore, sell )ore#gn e !.ange or "rans)er ru(ees "o non-res#den" a!!oun"

"o ards (a&%en" )or #%(or"s #n"o 'nd#a, )ro% an& )ore#gn !oun"r&, #n !on)or%#"& #". ".e

E (or"-'%(or" ol#!& #n $ogue and ".e Rules )ra%ed & ".e Go$ern%en" o) 'nd#a and ".e

#re!"#ons #ssued & Reser$e Ban )ro% "#%e "o "#%e ".e A!"/

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3or E !.ange Con"rol (ur(oses, ru(ee a!!oun"s %a#n"a#ned #n 'nd#a & !#"#9ens o) 'nd#a,

Ne(al B.u"an res#den"s #n Ne(alI B.u"an as ell as 'nd#an Ne(alese and B.u"anese

)#r%s !o%(an#es or o".er organ#9a"#ons, #n!lud#ng an s )un!"#on#ng #n ".ese !oun"r#es,

are regarded as res#den" a!!oun"s and ru(ee "rans)ers "o su!. a!!oun"s, )or #%(or"s #n"o

'nd#a 8or )or an& o".er (ur(ose , %a& e %ade )reel&, #".ou" re)eren!e "o ".e Reser$e

Ban / 'n "er%s o) Rule + o) ".e Go$ern%en" o) 'nd#an sale o) 3ore#gn e !.ange )or!urren" a!!oun" "ransa!"#ons #". (ersons res#den" #n Ne(al and or B.u"an, or aga#ns"

#%(or" #n"o ".ese !oun"r#es %ade & res#den"s #n 'nd#a, #s (ro.# #"ed/

Im ort i%enses8-

'%(or" o) ".e goods #n"o 'nd#a, #s su @e!" "o l#!enses #ssued & ".e #%(or" "rade au".or#"#es

as (er ".e #%(or" (ol#!& #n )or!e/ .e #%(or" (ol#!& #s announ!ed & ".e !en"ral

go$ern%en" and #s su @e!" "o ".e )re uen" %od#)#!a"#ons de(end#ng u(on ".e !oun"r& )ro%

"#%e "o "#%e/

Goods, .#!. are su @e!" "o #%(or" !on"rol, re u#re a s(e!#)#! #%(or" l#!ense e)ore ".e&

are roug." #n"o 'nd#a/ .e #%(or" o) goods under a l#!ense ould e su @e!" "o

!o%(l#an!e #". #"s s(e!#)#! !ond#"#ons, #%(or" l#!ense are #ssued #n du(l#!a"e, )#rs" !o(&

)or !us"o%s (ur(oses and ".e o".er )or E !.ange !on"rol (ur(oses/

.e l#!enses usuall& .a$e a $al#d#"& (er#od o) 12 %on".s )ro% da"e o) ".e #ssue/ Ho e$er

a l#!ense "o #%(or" !a(#"al goods s.all ord#nar#l& e #ssued )or a (er#od o) $al#d#"& o) 24

%on".s, and ".en ".e las" da& o) ".e %on".s !ons#dered "o e ".e e (#r& da"e/ .e

$al#d#"& o) a l#!ense 8 .e".er a (ar"#!ular l#!ense #s $al#d or no" #s re! oned #".

re)eren!e "o ".e s.#(%en" da"e/

a (e!#)#! #%(or" #!enses:

(e!#)#! '%(or" #!enses are #ssued & ".e #%(or" "rade !on"rol au".or#"#es/ .#s #s #ssued

)or #"e%s, .#!. are no" )reel& #%(or"a le and .a$e res"r#!"#ons/

O(en General #!ense:

An o(en general l#!enses a general au".or#"& (er%#""#ng all (ersons )#r%s !o%(an#es

"o #%(or" s(e!#)#ed goods #".ou" an& )or%al s(e!#)#! #%(or" l#!ense/

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'%(or"er e (or"er !ode no/ 8'EC :-

E$er& #nd#$#dual )#r% !o%(an& #%(or"#ng goods #n"o or e (or"#ng goods )ro% 'nd#a #s

re u#red "o o "a#n an 'EC nu% er allo""ed & G3 / .#s 'EC on!e allo""ed #s $al#d )or

.ole l#)e o) ".e #%(or"er or e (or"er and re u#res no rene al/

E?CHANGE CON RO REGK A 'ON

.e )ollo #ng are )e (o#n"s .#!. s.ould e e(" #n %#nd & Ads .#le deal#ng #%(or"

"ransa!"#ons/

1 E$#den!e o) #%(or" s.ould e )urn#s.ed & ".e #%(or"er/

2 D.en ".e E !.ange !on"rol !o(& #s #n ".e na%e o) a (erson o".er ".an ".e (erson

.a$#ng #%(or" l#!ense #n .#s na%e/ '" #s "o e ensur#ng & ".e Ads ".a" a le""er o)

au".or#"& .as een o "a#ned )ro% ".e (erson .old#ng #%(or" l#!ense/

+ A((l#!a"#ons & (ersons, )or %a #ng (a&%en"s "o ards #%(or"s #n"o 'nd#a %us" &%ade on A' )or%,

4 '%(or" l#!enses s.ould e surrendered "o ".e Ads .en )ull& u"#l#9ed/

5 Ads s.ould ensure ".a" #n ".e e$en" o) non-#%(or" o) goods, ".e a%oun" o)

ad$an!e #s re(a"r#a"ed "o 'nd#a or #s u"#l#9ed )or an& o".er (ur(oses )or .#!.

release e !.ange #s (er%#ss# le under ".e A!"/

6 D.en (a&%en" #s %ade )or re(la!e%en" o) #%(or" ".en #" #s "o e ensured ".a"

".ere #s no dou le (a&%en" )or ".e sa%e #%(or"/

7 'n ".e !ase o) #lls #n$ol$#ng large $alues, Ads s.ould sa"#s)& ".a" ".e #%(or"er #s

no n "o e "rad#ng #n ".e #"e%s %en"#oned #n ".e s.#((#ng do!u%en"s or ".a" ".e

#"e%s are re u#red )or .#s a!"ual use/

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MO)E O, REMITTANCES ,OR IMPORTS B+ OVERSEAS BRANCH8-

.e #%(or" de(ar"%en"s o) o$erseas ran!. %a e (a&%en" #n ".e )ollo #ng )or%s:

a Ad$an!e Re%#""an!e #re!" Re%#""an!e

! '%(or" aga#ns" le""er o) Cred#"

A"& n%e Remitt n%e8-

a&%en" #s g#$en on ad$an!e "o ".e #%(or" aga#ns" ".e !on)#r%ed order )or #%(or"

Ad$an!e (a&%en" )or goods e)ore re!e#(" o) ".e rela"#$e do!u%en"s e$#den!#ng

s.#(%en" #s (er%#""ed under E !.ange !on"rol Regula"#ons/

1/ a 3or Ca(#"al goods: K( "o 15 o) ".e $alue/

'%(or" o) o".er goods: D#".ou" l#%#"/

2/ u!. us#ness #s usuall& under"a en onl& )or !us"o%ers .a$#ng Ban #ng rela"#on

)or a reasona l& long (er#od o) #". an e !ellen" "ra! re!ord/

+/ .e !us"o%er=s "ra! re!ord #n su %#""#ng B#lls o) En"r& )or #%(or"s #n ".e (os"

s.ould also e a a"#s)a!"or&/ .e ran!. )ollo s u( ".e B#lls o) En"r& "o ensure

".a" ".e o$erseas ene)#!#ar& )ul)#ls .#s o l#ga"#on under ".e !on"ra!" agree%en"

#". ".e re%#""er #n 'nd#a/

4/ o!u%en"ar& e$#den!e #s (rodu!ed "o ".e A "o s.o ".e o$erseas u&er #s

#ns#s"#ng #n ad$an!e (a&%en" and )or ".e !os" o) goods/

5/ '%(or"er #s .old#ng ".e EC !o(& o) $al#d #%(or" l#!ense )or #%(or" o) goods

#n!luded #n ".e nega"#$e l#s" o) #%(or" o) ".e E?'M ol#!& #n )or!e/

6/ .e re%#""an!e #s %ade d#re!" "o ".e su((l#er/

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7/ Guaran"ee )ro% an #n"erna"#onal an o) re(u"e s#"ua"ed ou"s#de 'nd#a #s o "a#ned

)or ad$an!e re%#""an!e e !eed#ng K 25000 or #"s e u#$alen"/

*/ .&s#!al '%(or" #n"o 'nd#a #s %ade #".#n 812 %on".s #n !ase o) !a(#"al goods

)ro% ".e da"e o) re%#""an!e and ".e #%(or"er and ".e #%(or"er g#$es an

under"a #ng "o )#n#s. do!u%en"ar& e$#den!e o) #%(or" #".#n 15 da&s )ro% ".e!loser o) ".e rele$an" (er#od/ Ads, #) sa"#s)#ed #". ".e re ues" %a& allo

e "ens#on o) "#%e )or su %#""#ng ".e e$#den!e o) #%(or" no" e !eed#ng one %on".

8".ree %on".s #n !ase o) !a(#"al goods /

/ 3or #%(or" o) !a(#"al goods, !er"#)#ed !o(& o) ".e !on"ra!" or an& o".er e$#den!e

regard#ng "er%s o) (a&%en" #s ne!essar&/

10/ Au".or#9ed dealers s.ould ensure ".a" #n ".e e$en" on non-#%(or" o) goods ".e

a%oun" o) ad$an!e .as re(a"r#a"ed "o 'nd#a or #s u"#l#9ed )or an& o".er (ur(oses )or

.#!. release o) e !.ange #s (er%#ss# le under ".e A!"/

11/ 'n !ase o) all #%(or"s, E !e(" #%(or" ".roug. , .ere $alue o) )ore#gn e !.ange

re%#""ed (a#d )or #%(or" #n"o 'nd#a e !eeds K 5000 or #"s e u#$alen", #" #s

o l#ga"or& on ".e (ar" o) au".or#9ed dealer ".roug. .o% ".e rela"#$e re%#""an!e

as %ade "o ensure ".a" ".e #%(or"er su %#"s ".e E !.ange Con"rol !o(& o) ".eB#ll o) En"r& )or .o%e !onsu%("#on, or #n !ase o) 100 E (or" un#"s ".e

e !.ange !on"rol !o(& o) ".e B#ll or En"r& )or are.ous#ng, or Cus"o%s

Assess%en" Cer"#)#!a"e or (os"al a((ra#sal )or%a as de!lared & ".e #%(or"er "o

".e !us"o%er au".or#"#es, .ere #%(or" .as een #n"o 'nd#a/

D.ere #%(or"s are %ade #n non-(.&s#!al )or%, #/e/, so)" are or da"a ".roug.

#n"erne" da"a on C.annels and dra #ng and des#gns ".roug. e-%a#l )a !er"#)#!a"e

)ro% a C.ar"ered a!!oun"an" ".a" ".e so)" are da"a dra #ng des#gn .as een re!e#$ed

& ".e #%(or"er %a& e o "a#ned/

No"e: - Au".or#9ed dealers s.ould ad$#se #%(or"ers "o ee( Cus"o% au".or#"#es

#n)or%ed o) ".e #%(or"s %ade & ".e% under ".#s !lause/

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12/ .e #%(or"er, a !o(& o) ".e #ll o) En"r&, #n ".e (res!r# ed )or% #ssued & #n

res(e!" o) re%#""an!e )or #%(or"s ".roug. !our#er ser$#!es, au".or#9ed dealers

s.ould ensure su %#ss#on o) ".e E !.ange !on"rol !o(& o) ".e B' O3 En"r& #n

!ase o) #%(or"s $alued a" ru(ees one la! or %ore/ D.ere ".e $alue o) #%(or" #s

less ".an Rs one la!, au".or#9ed dealers %a& o "a#n )ro% ".e !us"o%s #n ".e na%e

o) reg#s"ered !our#ers, dul& !er"#)#ed & ".e !our#er !o%(an& #nd#!a"#ng ".ere on".e (ar"#!ulars o) ".e !ons#gn%en" )or .#!. ".e !o(& .as een #ssued/

)IRECT REMITTANCES8-

Ban .andles (a&%en" #n res(e!" o0) #lls re!e#$ed & ".e #%(or"er )ro% ".e su((l#er/ 'n

".#s %e".od o) re%#""an!e, ".e an "a es u"%os" !are "o a$o#d )raudulen!e/ ro(er

s!reen#ng o) #%(or" #lls are %ade #n order "o a$o#d )a e #%(or" #lls, .#!. #) unde"e!"ed

ould lead "o ou")lo o) )ore#gn e !.ange #".ou" an& (.&s#!al #%(or" "a #ng (la!e/

Bona)#de o) #%(or"er !us"o%er and .#s )#nan!#al s"a"us s"and#ng es"a l#s.ed/ Ban , #) no"

)ull& sa"#s)#ed a ou" #%(or"er s"and#ng, !red#" re(or" on ".e su((l#er #s !alled )or )ro%

o$erseas an or re(u"ed !red#" agen!#es, s(e!#)#! !o%%en" as "o .e".er ".e su((l#er #s

ord#nar#l& engaged on %anu)a!"ur#ng "rad#ng #n ".e !o%%od#"& soug." "o ".e an a !o(&

o) ".e #n$o#!e, ".e (a! #ng l#s" ".e !er"#)#!a"e o) or#g#n #ll o) lad#ng and ".e #ll o) en"r&

and rou"es .#s (a&%en" "o ".e su((l#er ".e an /

Im ort ! inst letter if Cre"it 6 FC78-

A le""er o) Cred#" %a& e de)#ned as a do!u%en"s #ssued & a an !on$eng #"s

!o%%#"%en" "o (a& or (la!e s(e!#)#ed a%oun" o) ".e ene)#!#ar&=s 8".e seller=s d#s(osal

on e.al) o) ".e o(ener8".e u&er under (re!#sel& de)#ned !ond#"#ons/ Ksuall& e#ng ".e

d#s(a"!. o) s"a"e %er!.and#se )ro% a s"a"ed (la!e "o ano".er s"a"ed (la!e and dra #ng

B#lls u( "o a s"a"ed a%oun"ed and surrender#ng ".e% "oge".er #". a s"a"ed se" o) s.#((#ng

o".er do!u%en"s, on or e)ore s"#(ula"ed da"e #n order "o o "a#n (a&%en"/

'n ".e #n"erna"#onal "rade ".e le""er o) !red#" .as e$ol$ed #n"o a $#"al !red#" %e!.an#s% "o

ensure s%oo". )lo o) "rade e" een na"#ons/ C #s a non-)und ased us#ness )or ".e

Ban /

O enin! on n FC

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Gui"elines for o enin! n FC8

1/ C #s o(ened onl& on e.al) o) an = o n !us"o%ers .o are no n "o e

(ar"#!#(a"#ng #n ".e "rade/

2/ D.e".er ".e (.&s#!al #%(or" o) goods ser$#!es )or .#!. C #s e#ng o(ened #s

allo ed on"o 'nd#a/+/ ') su!. goods ser$#!es are allo ed "o e #%(or"ed .e".er rade ol#!&

E !.ange !on"rol (er%#" ".e (a&%en" )or su!. goods ser$#!es/

4/ C s.ould e o(ened onl& #n )a$or o) o$erseas su((l#er, %anu)a!"urer or s.#((er

o) goods and no" #n )a$or o) a((l#!an" .#%sel) )or .#s no%#nee/

5/ C #s usuall& o(ened on ".e as#s o) underlng sale !on"ra!"/ 'n ".e a sen!e o) a

sale !on"ra!"/

ur!.ase order (la!ed & #%(or"er and !on)#r%a"#on ".ere o) & ".e

o$erseas su((l#er/

er)or%a #n$o#!e o) o$erseas su((l#er dul& a!!e("ed !oun"ers#gned & ".e

#%(or"er/

'nden" or o))er )ro% o$erseas su((l#er or .#s au".or#9ed agen"/

6/ ') an .as san!"#oned C )a!#l#"#es, se!ur#"& or %arg#n or guaran"ee as s"#(ula"ed

#s o "a#ned/ C !an e o(ened #". ".e %arg#n or guaran"ee o))ered & a ".#rd

(ar"& also/ .e as#! (re!au"#on "o e o ser$ed #s ".a" ".e #%(or"er .as ne!essar&

)#nan!#al a #l#"& "o ".e #lls re!e#$ed under C as also !us"o%s du"#es e"!/

7/ er#od o) $al#d#"& o) C )or s.#(%en" %us" e #".#n ".e $al#d#"& da"e )or #"e%

)reel& #%(or"a le or #n ".e rela"#$e l#!ense as ".e !ase %a& e #n ".e !ase o) #%(or"

under l#!ense, "#%e l#%#" )or se""le%en" o) (a&%en" s.ould no" e !eed )ro% ".e

da"e o) s.#(%en" #n !ase o) !as. #%(or"/

*/ .e !.arge )or o(en#ng an C #s Rs/ 1500/ 'n add#"#on "o ".#s ".e an !.arges

!o%%#"%en"s and usan!e !.arges/ .e C #s ".en sen" "o ".e e (or"er an

".roug. D'3 OR E E?/ All ".e rou"#ng #s done ".roug. !orres(onden"

an s/ 'n !ase o) D'3 ".e an .as "es"#ng arrange%en"/ 3or o(en#ng an C a

re ues" le""er #s re u#red )ro% ".e e (or"er "o ".e #%(or"er, .#!. #s "o e

(ro$#ded "o ".e an/ E$er& a%end%en" #ll .a$e ".e sa%e #%(l#!a"#on, as ".e

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o(en#ng o) an C #n!lud#ng a$a#la #l#"& o) C l#%#" %us" e o ser$ed .#le

a%end#ng ".e C also/

P 'ment ! inst FC8-

a&%en" under do!u%en" o) !red#" #s %ade onl& #) ".e do!u%en"s re!e#$ed, !on)or%s "o

"er%s la#d do n #n ".e do!u%en" .en!e ".e& (la& a $er& $#"al role/ A)"er ".e anre!e#$ed ".e do!u%en"s ".e& are !are)ull& e a%#ned and "o %us" e de"er%#ned on ".e

as#s o) ".e do!u%en"s alone .e".er or no" ".e& a((ear on ".e#r )a!e, "o e on

!o%(l#an!e #". ".e "er%s and !ond#"#ons o) ".e C/ .e s!ru"#n& o) ".e do!u%en" #s "o

e done on 7 da& and #n !ase o) an& d#s!re(an!& o ser$ed, su!. s.ould e re(or"ed "o ".e

e (or"er=s an #".#n 7 da&s (er#od a)"er !onsul"#ng ".e #%(or"er/

'n !ase o) s#g." #ll #" #s #%%ed#a"el& lodged a)"er s!ru"#n& and ".e (ar"& #s #n"#%a"ed and

g#$er 10 da&s "#%e )or %a #ng (a&%en"/ 'n !ase o) usan!e #ll, ".e an lodges ".e

do!u%en"s and #n"#%a"es ".e (ar"&/ .e (ar"& #s re u#re a!!e("#ng ".e do!u%en" or

re@e!"#ng #" #".#n 4* .ours and agrees "o %a e (a&%en" on ".e due da"e/

'n !ase ".e (ar"& )a#ls "o %a e ".e (a&%en" #".#n s"#(ula"ed "#%e, ".e an !r&s"all#9es

".e #ll/ .e ra"#onale )or ".#s (ro!edure #s ".a" ".e an s Nos"roa ! ould .a$e een

de #"ed .en ".e #ll under ".e#r C ould .a$e een nego"#a"ed/ 3ur".er, a s#g." #ll

.as "o e (a#d on de%and and ".ere)ore, ".e #%(or"er #s o l#ged "o re"urn ".e do!u%en"s

D#".ou" dela&: ".#s (ro!edure also .el(s a$o#d an =s e (osure "o ".e r#s s o) ad$erse

e !.ange ra"e )lu!"ua"#ons/ 'n !ase o) Ksan!e #ll, !r&s"all#9a"#on en"r#es #ll e (assed

on ".e #ll/ A)"er !r&s"all#9a"#on, $#gorous e))or"s %us" e %ade "o .a$e ".e #lls re%#""ed

Im orts un"er Pen lt'

Au".or#9ed dealers %a& %a e re%#""an!es aga#ns" goods #%(or"ed #".ou" au".or#"&, u"

la"er allo ed "o e !leared & ".e

Cus"o%s Au".or#"#es aga#ns" (a&%en" o) (enal"&, "o ".e e "en" o) !/#/), $alue o) ".e goods

#nd#!a"ed on ".e rela"#$e E !.ange Con"rol !o(& o) ".e Cus"o%s B#ll o) En"r& e$#den!#ng

#%(or"s o) goods "o 'nd#a/

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o"!in! of %olle%tion 3ills8-

e(end#ng on ".e !oun"r& o) s.#(%en" o) ".e goods e#ng #%(or"ed, d#))eren" %e".od

(a&%en" "o ards #%(or" #n"o 'nd#a .a$e een (res!r# ed under ".e e !.ange ".e

E !.ange Con"rol Regula"#ons/ .ese .a$e a d#re!" rela"#ons.#( "o ".e !oun"r& o)s.#(%en" o) goods #rres(e!"#$e o) )ro% .ere ".e goods are on!e (ro!ured/ 'n o".er

ords, (a&%en"s )or #%(or"s are "o e %ade #n a !urren!& a((ro(r#a"e "o ".e !oun"r& o)

or#g#n o) goods a!!ord#ng "o ".e !urren" e !.ange !on"rol regula"#ons/ .e )ollo #ng

s.ould e s"r#!"l& ad.ered "o .#le o(en#ng #%(or" le""ers o) !red#" or e))e!"#ng re%#""an!e

aga#ns" #%(or" #lls on !olle!"#on as#s or .en %a #ng ad$an!es (a&%en" )or #%(or"s/

1/ All !oun"r#es o".er ".an ".ose l#s"ed

under 8''

a&%en" #n ru(ees "o ".e a!!oun" o) a

res#den" o) an& !oun"r& #n ".#s grou(''/ %e% er !oun"r#es o) As#an Clear#ng

Kn#on 8e !e(" Ne(al

Banglades., M&an%ar, a #s"an r# an a,

'sla%#! Re(u l#! o) 'ran

a&%en" #n an& (er%#""ed !urren!&/

a a&%en" )or all el#g# le !urren"

"ransa!"#on & !red#" "o ".e ACK

ollar a ! #n 'nd#a o) an or ".e

ar"#!#(a"#ng !oun"r& #n .#!. ".e o".er

(ar"& "o ".e "ransa!"#on #s res#den" or &

de #" "o ".e ACK ollar a ! o) ".e

au".or#9ed %a#n"a#ned #". ".e

!orres(onden" an on ".e res(e!"#$e

ACK !oun"r&/

a&%en" #n an& (er%#""ed !urren!&

#n o".er !ases/

Go$"/ o) 'nd#a .as !on!luded and %a& !on!lude )ro% "#%e "o "#%e s(e!#al "rade and

(a&%en" agree%en" #". so%e !oun"r#es (ro$#d#ng o) se""le%en" "o ".e !oun"r#es #n a

s(e!#)#ed %anner/ D.ere$er A .as een a ou" arrange%en"s ".e %e".od o) (a&%en"

s(e!#)#ed ".ere#n #ll .a$e "o e )ollo ed #n su!. !ases/ a&%en" )or goods #%(or"ed

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Ne(al B.u"an #". an& an #n 'N 'A/ 'n su!. !ases (a&%en" #n an& )ore#gn !urren!& or

!red#"#ng o) ru(ees "o non-res#den" an a ! o) an& o".er !oun"r& #s (ro.# #"ed/

T4e imit for Settlement of Im ort P 'ments

Re%#""an!es aga#ns" #%(or"s s.ould e !o%(le"ed no" la"er ".an s# %on".s )ro% ".e da"eo) s.#(%en"/ A!!ord#ngl&, de)erred (a&%en" arrange%en"s #n$ol$#ng (a&%en"s e&ond a

(er#od o) s# %on".s )ro% ".e da"e o) s.#(%en" are "rea"ed as e "ernal !o%%er!#al

orro #ngs .#!. re u#re (r#or a((ro$al o) ".e Reser$e Ban Go$ern%en" o) 'nd#a/

.ere ould, .o e$er, e no o @e!"#on "o #%(or"ers #"..old#ng a%oun"s no" e !eed#ng

15 (er !en" o) ".e !os" o) goods "o ards guaran"ee o) (er)or%an!e, e"!/ Au".or#9ed

dealers %a& %a e re%#""an!es o) a%oun"s so #"..eld, (ro$#ded ".e earl#er re%#""an!e

.ad een %ade ".roug. ".e%/ No (a&%en" o) #n"eres" #s (er%#ss# le on su!. #"..eld

a%oun"s/

o%e"#%es, se""le%en" o) #%(or" due %a& e dela&ed due "o d#s(u"es, )#nan!#al

d#))#!ul"#es, e"!/, au".or#9ed dealers %a& %a e re%#""an!es #n su!. !ase e$en #) ".e (er#od

o) s# %on".s .as e (#red, (ro$#ded-

Au".or#9ed dealer #s sa"#s)#ed a ou" ".e genu#ness o) ".e !#r!u%s"an!es lead#ng "o ".e

dela& #n (a&%en" and no (a&%en" o) #n"eres" #s #n$ol$ed )or ".e add#"#onal (er#od/

.o e$er, #n !ases .ere ".e o$erseas su((l#er #ns#s" on (a&%en" o) #n"eres", #" %a& eallo ed #n a!!ordan!e #". ".e (ro$#s#ons u( "o a %a #%u% (er#od o) 60 da&s e&ond

1*0 da&s )ro% ".e da"e o) s.#(%en" (ro$#ded ".e #%(or" #ll #s (a#d #".#n ".a" (er#od/

NO E :

A) .In case of import bills negotiated under letter of credit and retired by importer

after expiry of six months from the date of shipment of relative goods, settlement

of payment would be deemed to be completed within six months from the date of

shipment if reimbursement was made to the overseas ban within that period,

B) !emittances against import of boo s may be allowed without restrictions as o

time limit, provided no interest payment is involved nor has the importer forgone

any part of the discount rebate normally allowed to importers towards

compensation for delay in settlement of dues.

Interest on Im ort Bills /

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Au".or#9ed dealers %a& %a e re%#""an!es on a!!oun" o) #n"eres" a!!rued on Ksan!e #lls

under nor%al #n"eres" !lause or o) o$erdue #n"eres" (a&a le on s#g." #lls )or a (er#od no"

e !eed#ng s# %on".s )ro% ".e da"e o) s.#(%en" #n res(e!" o) #%(or"s #".ou" (r#or

a((ro$al o) Reser$e Ban /

No"e: Interest under "normal interest clause# would mean interest at the "prime# rate $or

its e%uivalent) of the country in the currency of which the goods are invoiced or &IBO!

of the currency.

'n !ase o) (re-(a&%en" o) usan!e #%(or" #lls re%#""an!es %a& e %ade onl& a)"er

redu!#ng ".e (ro(or"#ona"e #n"eres" )or ".e un-e (#red (or"#on o) usan!e a" ".e ra"e,

A!!ord#ng "o ".e !on"ra!", a" .#!. ".e #n"eres" .as een !la#%ed )or ".e usan!e (er#od or

".e (r#%e ra"e or 'BOR o) ".e !urren!& #n .#!. ".e goods .a$e een #n$o#!ed,

.#!.e$er #s a((l#!a le/ D.ere #n"eres" #s no" se(ara"el& !la#%ed, re%#""an!es %a& e

allo ed a)"er dedu!"#ng ".e (ro(or"#ona"e #n"eres" )or ".e un-e (#red (or"#on o) Ksan!e a"

".e (re$a#l#ng (r#%e= ra"e 'BOR o) ".e !urren!& o) #n$o#!e/

C4 r!es on "ifferent im ort "o%uments 6Vi< ' B n=78-

#7 %olle%tion "o%ument or Si!4t 3ills 6 it4out FC7

W/25 o) ".e a%oun" (a&a le or rs250 -/, .#!.e$er #s .#g.er as !o%%#ss#on/U/125

o) ".e a%oun" (a&a le or Rs/250 .#!.e$er #s .#g.er, (er uar"er 8)or !olle!"#on

do!u%en" #) #" #s (a#d a)"er ".e due da"eURs/1000 as "ele !.arge

(7 FC o enin! %4 r!es

o Ksan!e C !.arge

W/15 o) ".e a%oun" (a&a le or Rs/250, .#!. e$er #s .#g.er as !o%%#"%en" !.arges/

Remitt n%es ! inst Re l %ement Im orts

'n !ase #%(or" o) an #"e% does no" re u#re l#!ense under ".e E (or"- #%(or" ol#!& #n

)or!e and ".ere #s a need )or re%#""an!e o) )ore#gn e !.ange )or #%(or" o) re(la!e%en"

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goods )or a de)e!"#$e #"e% #%(or"ed earl#er, ".e re%#""an!e s.ould e %ade a)"er ensur#ng

".a" ".ere #s no dou le (a&%en" )or ".e sa%e #%(or"/

D.ere goods are s.ou"-su((l#ed, da%aged, and s.or"-landed or los" #n "rans#", ".e

(ro!edure la#d do n elo s.ould e )ollo ed )or (a&%en" aga#ns" re(la!e%en" )oods:

'n !ases .ere no le""er o) !red#" .as een o(ened or re%#""an!es %ade, E !.ange

Con"rol !o(& o) ".e #%(or" l#!ense %a& e au"o%a"#!all& "rea"ed as $al#d )or ".e

re(la!e%en" !ons#gn%en" (ro$#ded #" #s s.#((ed #".#n ".e $al#d#"& (er#od o) ".e l#!ense/

') ".e E !.ange Con"rol !o(& .as alread& een u"#l#9ed "o !o$er ".e o(en#ng o) a le""er o)

!red#" aga#ns" ".e or#g#nal goods .#!. .a$e een los", ".e or#g#nal endorse%en" "o ".e

e "en" o) ".e $alue o) ".e los" goods %a& e !an!elled & au".or#9ed dealers #".ou"

re)eren!e "o ".e Reser$e Ban , (ro$#ded ".e #nsuran!e !la#% rela"#ng "o ".e los" goods .as

een se""led #n )a$or o) ".e #%(or"er & re%#""an!e )ro% a road ".roug. an au".or#9ed

dealer, #) #nsuran!e as !o$ered a road and & lo!al (a&%en" #n ru(ees #) #nsuran!e as

!o$ered #n 'nd#a/ a&%en" )or ".e re(la!e%en" goods %a& ".en e %ade aga#ns" su#"a le

endorse%en" on ".e #%(or" l#!ense su @e!" "o ".e !ond#"#ons ".a" ".e re(la!e%en"

!ons#gn%en" #s s.#((ed #".#n ".e $al#d#"& (er#od o) ".e l#!ense/

') re(la!e%en" goods are "o e s.#((ed a)"er ".e e (#r& o) #%(or" l#!ense, ".e #%(or"ers.ould e as ed "o a((l& "o GR )or re(la!e%en" or )or re$al#da"#on o) ".e e (#red

l#!ense/

A Gu r ntee for Re l %ement Im ort

'n !ase re(la!e%en" goods )or a de)e!"#$e #%(or" are e#ng sen" & ".e o$erseas su((l#er

e)ore ".e de)e!"#$e goods #%(or"ed earl#er are d#s(a"!.ed ou" o) 'nd#a, au".or#9ed dealers%a& #ssue guaran"ees a" ".e re ues" o) #%(or"er !l#en"s )or ".e d#s(a"!. re"urn o)

de)e!"#$e goods, a!!ord#ng "o ".e#r !o%%er!#al @udg%en"/

,ollo u 3' Aut4ori e" )e lers

'n !ase an #%(or"er does no" )urn#s. ".e do!u%en" o) e$#den!e o) #%(or", #" #s re u#red

#".#n + %on".s )or% ".e da"e o) re%#""an!e #n$ol$#ng )ore#gn e !.ange e !eed#ng

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K 5000 ".e au".or#9ed dealer s.ould r#gorousl& )ollo -u( )or ".e ne " + %on".s,

#n!lud#ng #ssue o) reg#s"ered le""ers "o ".e #%(or"er, )or su %#ss#on o) an a((ro(r#a"e

do!u%en" as e$#den!e o) #%(or"/

Au".or#9ed dealers s.ould )or ard "o ".e Reser$e Ban a s"a"e%en" on .al) &earl& as#s

as a" ".e end o) June I e!e% er o) e$er& &ear, #n )or% BE3 )urn#s.#ng de"a#ls o) #%(or"

ransa!"#ons e !eed#ng K 5000 #n res(e!" o) .#!. #%(or"er .a$e de)aul"ed #n

su %#ss#on o) an a((ro(r#a"e do!u%en" e$#den!#ng #%(or" #".#n 6 %on".s )or% ".e da"e

o) re%#""an!e/ .e sa#d .al) &earl& s"a"e%en" s.ould e su %#""ed "o ".e Reg#onal o))#!e

o) ".e Reser$e Ban under .ose @ur#sd#!"#on ".e au".or#9ed dealer #s )un!"#on#ng, #".#n

15 da&s )ro% ".e end o) .al) &ear "o .#!. ".e s"a"e%en" rela"es/

No"e: - A .In case where at the time advance remittance purpose of remittance was

indicated as import and subse%uently the exchange has been used for a purpose for

which sale of exchange is permissible, and a document to the satisfaction of authori'ed

dealer has been produced, such cases should not be treated as default and hence be

excluded from the B( statement.

B. Authori'ed dealers may accept into Bond bill of (ntry as a provisional evidence of

import into India. *owever, they may ensure submission of (xchange +ontrol copy ofthe Bill of (ntry for *ome consumption within a reasonable period of time. herever

into Bond Bill of (ntry has been submitted such cases need not be report din B(

statement.

Re%ei t of im ort BillsF )o%uments

'%(or" #lls and do!u%en"s s.ould e re!e#$ed )ro% ".e an er o) ".e seller & ".e an er o) ".e u&er #n 'nd#a/ Au".or#9ed dealers s.ould no", ".ere)ore, %a e re%#""an!es

.ere #%(or" #lls .a$e een re!e#$ed d#re!"l& & ".e #%(or"ers )ro% ".e o$erseas seller,

e !e(" #n ".e )ollo #ng !ases:

D.ere ".e $alue o) #%(or" #ll does no" e !eed K/ 10000/

1/ '%(or" #lls re!e#$ed & .oll& o ned 'nd#an su s#d#ar#es o) )ore#gn !o%(an#es

)ro% ".e#r (r#n!#(als/

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2/ #%(or" #lls re!e#$ed & u(er "ar rad#ng Houses, "ar rad#ng Houses, rad#ng

Houses, E (or" Houses, 100 E (or" Or#en"ed Kn#"s #n 3ree rade Lones, u l#!

e!"or Knder"a #ng and #%#"ed Co%(an#es/

+/ .ere ".e $alue o) #%(or" #ll does no" e !eeds K/ 25,00 #n res(e!" o) #%(or" o)

a Boo s and %aga9#nes

#)e sa$#ng drugs e u#(%en"s & .os(#"als, e"!/ and

! '%(or"s & re(u"ed resear!. and o".er de$elo(%en" #ns"#"u"#ons l# e a"a 'ns"#"u"e

o) 3unda%en"al Resear!., C- O , 'nd#an 'ns"#"u"e o) e!.nolog&, 'nd#an

'ns"#"u"e o) !#en!e and Kn#$ers#"#es/

d '%(or"s #lls re!e#$ed & all l#%#"ed !o%(an#es $#9/ u l#! l#%#"ed, (u l#! l#%#"ed

and (r#$a"e l#%#"ed !o%(an#es/

'n all o".er !ases, a" ".e re ues" o) #%(or"er !l#en"s, au".or#9ed dealers %a& re!e#$e #lls

d#re!" )ro% ".e o$erseas seller u( "o K/ / 250008K/ / ollars en"& 3#$e ".ousand

onl& / ro$#ded ".e au".or#9ed dealer #s )ull& sa"#s)#ed a ou" ".e )#nan!#al s"and#ng s"a"us

and "ra! re!ord o) ".e #%(or"er !us"o%er/ Be)ore e "end#ng ".e )a!#l#"&, au".or#9ed

dealer s.ould o "a#n re(or" on ea!. #nd#$#dual o$erseas seller )ro% ".e o$erseas an er or

re(u"ed !red#" agen!&/

POSTA IMPORTS

Re%#""an!es aga#ns" #lls re!e#$ed )or !olle!"#on #n res(e!" o) #%(or"s & (os" (ar!el %a&

e %ade & au".or#9ed dealers, (ro$#ded ".e goods #%(or"ed are su!. as are nor%all&

d#s(a"!.ed & (os" (ar!el/ 'n ".ese !ases, ".e rela"#$e (ar!el re!e#("s %us" e (rodu!ed as

e$#den!e o) d#s(a"!. ".roug. ".e (os" an under"a #ng "o su %#" os"al A((ra#sal 3or% or

Cus"o%s Assess%en" Cer"#)#!a"e as e$#den!e o) #%(or" #".#n ".ree %on".s )ro% ".e da"eo) re%#""an!e s.ould e )urn#s.ed & #%(or"ers/ ') ".e (ar!el .as alread& een re!e#$ed #n

'nd#a os"al A((ra#sal 3or% or Cus"o%s Assess%en" Cer"#)#!a"e s.ould e (rodu!ed #n

su((or" o) ".e re%#""an!e a((l#!a"#on/ D.ere goods "o e #%(or"ed are no" o) a #nd

nor%all& #%(or"ed & (os" (ar!el or .ere au".or#9ed dealer #s no" sa"#s)#ed a ou" ".e

Bona)#de o) ".e a((l#!a"#on, ".e !ase s.ould e re)erred "o Reser$e Ban )or (r#or

a((ro$al #". )ull (ar"#!ulars "oge".er #". rela"#$e (ar!el re!e#(" s and os"al A((ra#sal

3or% or Cus"o%s Assess%en" Cer"#)#!a"e/

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No"e: Authori'ed dealers may ma e remittances towards import of boo s by post parcel

by boo -sellers publishers against bills received for collection, irrespective of amounts

involved, without prior approval of the !eserve Ban against endorsement on the import

license wherever applicable in the normal course. /hey may also ma e remittances evenif import licenses covering the imports have been issued subse%uent to the date of import

sub0ect to endorsement on such licenses.

##. GENERA REMITTANCES

General Re%#""an!es %ean ".e #n)lo or ou")lo ".e )ore#gn !urren!& .#!. are no"

%ade )or ".e (ur(ose o) #%(or" or e (or"/ .e& are o) " o "&(es:

1/ Ou" ard Re%#""an!es

2/ #n ard Re%#""an!es

OK DAR REM' ANCE :

Ou" ard re%#""an!es are ".e ou" )lo s o) )ore#gn e !.ange/ .ese are "o e e))e!"ed onl&

".roug. an #ng !.annels #/e/ ".roug. Ads/ Cer"a#n (o ers .a$e een delega"ed "o ".e

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Ads #n )ore#gn e !.ange "o a))e!" ou" ard re%#""an!es u( "o s(e!#)#ed l#%#"s )or s(e!#)#ed

(ur(oses, under ".e Regula"#ons go$ern#ng Curren" A!!oun" "ransa!"#ons #".ou" ".e

(r#or a((ro$al o) ".e RB'/ 'n all !ases e !.ange !on"rol )or%s #n )or% A2, )or (ur(oses

o".er ".an, )ull& )#lled/

D.ere ".e a((l#!a"#on )or ".e ou" ard re%#""an!es e#".er as "o a%oun" or (ur(ose or o".,)alls e&ond ".e l#%#"s s(e!#)#ed, ".e a((ro(r#a"e E !.ange Con"rol )or% as %en"#oned

a o$e dul& !o%(le"ed & ".e a((l#!an" #n du(l#!a"e s.ould e )or arded & ".e Ads "o ".e

RB' )or ".e#r (r#or a((ro$al/ D.#le )or ard#ng su!. an a((l#!a"#ons, ".e Ads s.ould

ensure ".e !orre!"ness o) ".e (ar"#!ulars )urn#s.ed ".ere#n and ".a" ".e sa%e #s su %#""ed

#n #"s en"#re"& & ".e a((l#!an" dul& su((or"ed & ne!essar& do!u%en"ar& e$#den!e/ On

a((ro$al, ".e RB' #ll #ssue and E !.ange er%#"/ .e E !.ange er% #" #ll !on"a#n

(ar"#!ulars su!. as ".e na%e o) ".e a((l#!an", a%oun", na%e o) ".e ene)#!#ar& o) ".e

re%#""an!e and ".e an =s na%e ".roug. .o% ".e a((l#!a"#on as %ade/ 'n !ase ".e

re%#""an!e #s des#red "o e a))e!"ed ".roug. ".e Ban , ne!essar& a%end%en" al"era"#on #n

".e (er%#" s.ould e ge" done )ro% ".e RB'/ Be)ore a))e!"#ng ".e re%#""an!e/ Ho e$er

re%#""an!e !an e a))e!"ed ".roug. an& o".er ran!. o) ".e sa%e a an /

D.ene$er ".e e !.ange #s released aga#ns" an E !.ange er%#" ".e )ollo #ng s.ould e

!are)ull& no"ed/ a"e o) #ssue o) ".e (er%#"/

/ a"e o) E (#r& o) ".e (er%#"/

Re ues"s )or re%#""an!es a)"er e (#r& o) ".e (er%#" s.ould e done onl& a)"er #"s

re$al#da"#on & ".e RB'/ er%#" #s onl& )or one re%#""an!e #/e/ e !.ange under a (er%#"

!an e dra n onl& on!e, unless, o".er #se s(e!#)#!all& %en"#oned #n ".e (er%#" and #ll

la(se e$en #) ".e e !.ange a!"uall& dra n #s less ".an .a" #s (er%#""ed/ ') ".ere #s an&

a%end%en" #n ".e (er%#", #" s.ould e dul& au".en"#!a"ed & " o o))#!#als o) ".e RB'/

D.ene$er ".e $alue o) ".e re%#""an!e #s rs/50000 or %ore, ".e a%oun" s.ould no" e

a!!e("ed #n !as./ '" s.ould e a))e!"ed & de #"#ng ".e !us"o%er=s a ! or ".roug. !rossed

!.e ues/

.ere are $ar#ous )or%s #n .#!. ".e an (ro$#des re%#""an!e

1/ e%and ra)"s

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2/ elegra(.#! rans)er

+/ %a#l "rans)er

4/ "ra$elers !.e ues )ore#gn !urren!& no"es

(e!#)#! #ns"an!es .en Go$ern%en" o) 'nd#a=s a((ro$al #s re u#red/ Re%#""an!e ou" o) lo""er& #nn#ngs/

/ Re%#""an!e o) #n!o%e )ro% ra!#ng r#d#ng e"!/ or an& o".er .o &/

Re%#""an!e )or (ur!.ase o) lo""er& "#! e"s, anned (ros!r# ed %aga9#nes, )oo" all (ools,

ee(s"a es, e"!/

a&%en" o) !o%%#ss#on o) e (or" %ade "o ards e u#"& #n$es"%en" #n Jo#n"

en"ures D.oll& O ned u s#d#ar#es a road o) 'nd#an !o%(an#es/

Re%#""an!e o) d#$#dend & an& !o%(an& "o .#!. ".e re u#re%en" o) d#$#dend alan!#ng

#s a((l#!a le/

a&%en" rela"ed "o ;!all Ba! er$#!es< o) "ele(.ones/

Re%#""an!e o) #n"eres" #n!o%e on )unds .eld #n Non-Res#den" (e!#al Ru(ee

8A!!oun" s!.e%e/

.e #ns"an!es .#!. re u#res a((ro$al o) ".e Reser$e Ban o) 'nd#a

Re%#""an!e & ar"#s"e e/g/ res"ler, dan!er, en"er"a#ner e"!, 8 .#s res"r#!"#on #s no"

a((l#!a le "o ar"#s"es engaged & "our#s% rela"ed organ#9a"#ons #n 'nd#a l# e ' C,

"a"e our#s% e$elo(%en" Cor(ora"#ons e"!/ ur#ng s(e!#al )es"#$als or ".ose

ar"#s"es engaged & .o"els #n )#$e s"ar !a"egor#es, (ro$#ded ".e e (end#"ure #s %e"

ou" o) EE3C a!!oun" /

Release o) e !.ange e !eed#ng K 5000 or #"s e u#$alen" #n one !alendar &ear,

)or one or %ore (r#$a"e $#s#"s "o a & !oun"& 8e !e(" Ne(al and B.u"an / G#)" re%#""an!e e !eed#ng K 5000 (er re%#""er donor (er annu%/

ona"#on e !eed#ng K 5000 (er re%#""er donor (er annu%/

E !.ange )a!#l#"#es e !eed#ng K )or (ersons go#ng a road )or e%(lo&%en"/

E !.ange )a!#l#"#es )or e%#gra"#on e !eed#ng K 5000 or a%oun" (res!r# ed &

!oun"r& o) e%#gra"#on

Re%#""an!e )or %a#n"enan!e o) !lose rela"#$es a road,

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E !eed#ng ne" salar& 8a)"er dedu!"#on o) "a es, !on"r# u"#on "o (ro$#den" )und and

o".er dedu!"#ons o) a (erson .o #s res#den" u" (er%anen"l& res#den" #n 'nd#a

and #s a !#"#9en o) a )ore#gn s"a"e o".er ".an a #s"an/

E !eed#ng K 5000 (er &ear, (er re!#(#en", #n all o".er !ases/

E (lana"#on : )or ".e (ur(ose o) ".#s #"e% ,a (erson res#den" #n 'nd#a on a!!oun" o)

.#s e%(lo&%en" o) a s(e!#)#ed dura"#on 8#rres(e!"#$e o) leng". ".ereo) or )or as(e!#)#! @o or ass#gn%en" ".e dura"#on o) .#!. does no" e !eed ".ree &ears ,#s a

res#den" u" no" (er%anen"l& res#den"/

Release o) )ore#gn e !.ange ,e !eed#ng K 25000 "o a (erson ,#rres(e!"#$e o)

er#od o) s"a& ,)or us#ness "ra$el ,or a""end#ng a !on)eren!e or s(e!#al#9ed

"ra#n#ng or )or %a#n"enan!e e (enses o) a (a"#en" go#ng a road )or %ed#!al

"rea"%en" o) !.e! -u( a road ,or )or a!!o%(anng as a""endan" "o a (a"#en" go#ng

a road )or %ed#!al "rea"%en" !.e! -u(/ Release o) e !.ange )or %ee"#ng e (enses )or %ed#!al "rea"%en" a road

e !eed#ng ".e es"#%a"e )ro% ".e do!"or #n 'nd#a or .os(#"al do!"or a road/

Release o) e !.ange )or s"ud#es a road e !eed#ng ".e es"#%a"e )ro% ".e #ns"#"u"#on

a road or K +0000 (er a!ade%#! &ear, .#!.e$er #s .#g.er/

Co%%#ss#on "o agen"s a road )or sale o) res#den"#al )la"s !o%%er!#al (lo"s #n

'nd#a, e !eed#ng 5 o) ".e #n ard re%#""an!e/

.or" "er% !red#" "o o$erseas o))#!es o) 'nd#an !o%(an#es/

Re%#""an!e )or ad$er"#se%en" on )ore#gn "ele$#s#on & a (erson .ose e (or"

earr#ngs are less ".an Rs/10 la!s dur#ng ea!. o) ".e (re!ed#ng " o &ears/

Re%#""an!e o) ro&al"& and (a&%en" o) lu%(-su% )ee under ".e "e!.n#!al

!olla ora"#on agree%en" , .#!. .as no" een reg#s"ered #". reser$e an

Re%#""an!e e !eed#ng K 100000 F (er (ro@e!", )or an& !onsul"an!& ser$#!e

(ro!ured )ro% ou"s#de 'nd#a/

Re%#""an!es )or use and or (ur!.ase o) "rade %ar )ran!.#se #n 'nd#a

Re%#""an!e e !eed#ng K 100000 F & an en"#"& #n 'nd#a & a& o)

re#% urse%en" o) (re-#n!or(ora"#on e (enses/

C.arges #n ou" ard re%#""an!es 8 #@a&a Ban

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#@a&a Ban !olle!"s 125 o) ".e a%oun" re%#""ed or Rs/50 .#!. e$er #s .#g.er, as

!o%%#ss#on (lus #) #" #s sen" & D'3 ".en Rs/1000/ ') a #s #ssued ".en 125 o)

".e a%oun" re%#""ed or Rs/50 .#!. e$er #s .#g.er, and #) #" #s less ".an or e ual "o

" o ".ousand dollars or #"s e u#$alen" ".en Rs/200/ Bu" #) ".e re%#""er #s re%#""#ng

)ro% e !.ange earners a ! 8#n #@a&a Ban #" #s no n as 3E? a ! ".en onl&

!o%%#ss#on !.arged/

'NDAR REM' ANCE :

'n ard re%#""an!es are ".e #n)lo o) )ore#gn e !.ange/ .e o$erseas ran!. (ro$#des

".ese re%#""an!es on ".e )ollo #ng )or%/

1/ elegra(.#! rans)er

2/ Ma#l rans)er

+/ e%and ra)"s/

D.en an #n ard Re%#""an!e #s re!e#$ed, ".e genu#neness au".en"#!#"& o) ".e

sa%e s.ould e go" !on)#r%ed & ".e ran!./ .#s #s done & $er#)ng ".e

s#gna"ures a((ear#ng on ".e #ns"ru%en" #n ".e !ase o) a de%and dra)" or %a#l

"rans)er along #". ".e se!ur#"& )ea"ures, !o%(ar#ng ".e )or%a" #". ".e

s(e!#%en/ D.ere ".e dra ran!. .as no" een (ro$#ded #". ".e s(e!#%ens#gna"ures o) o))#!#als o) ".e dra er an .o are au".or#9ed "o s#gn Q

N e"!/ or s#gna"ure oo ,".e %a""er s.ould e "a en u( su#"a l& #". ".e

#ssu#ng an )urn#s.#ng ".e )ull de"a#ls o) ".e #ns"ru%en" (resen"ed )or

(a&%en" / .e (a&%en" o) su!. #ns"ru%en"s s.ould no" e %ade #".ou" ".e

(r#or au".or#9a"#on )or% ".e #ssu#ng an /

'n !ase o) elegra(.#! rans)er, e)ore a))e!"#ng (a&%en", ".e au".en"#!#"& #s

"o e go" !on)#r%ed & $er#)ng ".e "es" !ode, (ro$#ded #n ".e %essages/ 3or

".#s (ur(ose ".e au".or#9ed (ang ran!.es are "o e (ro$#ded #". ".e ; es"

e&< o) ".e #ssu#ng an , and ".e (a&%en" #s "o e a))e!"ed onl& #) ".e "es"

!ode g#$en #n ".e %essage #s )ound "o e !orre!"/

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#(. ANA +SIS AN) INTERPRETATION

BK 'NERAN AC E 1 -00 2000-01 20001-02 2002-0+ 200+-048K( "o%ar!.

Mar#ne (rodu!"s 261/6* +++/*6 252/5* 1 */1 75/*5ro!essed

3ood8e !lud#ngMar#ne (rodu!"s

120/4+ - - 1*2/+ *5/ *

Read& %adegar%en"s Ia((arels8!o""on

2 6/4* ++7/** 2*6/5* 25 / + *1/ 2

Handloo% "e "#les 51/*5 *4/*5 111/61 5*/24 2+/05

Hand#!ra)"s#n!lud#ng ar" are 175/44 1+5/1 1+0/64 54/41 25/+

#a%onds 160/ * 126/ 1+0/0* 106/** 46/25Co))ee +*/47 +0/+7 27/55 +5/41 15/14

ea 64/ 5 7624 *0/54 50/+5 26/27H#des, s #ns andlea".er%anu)a!"ur#ng

*6/0* 111/77 *2/2 51/6 1+/*2

Eng#neer#ng good8#n!lud#ng !a(#"algoods s(ares

+1/4 2 /*1 42/*7 25/*7 1+/0

M#lls %ade !o""on"e "#le 22/2* 56/6 /62 + /5* 1*/ 5

(#!es 21/5* 11/2+ /7 10/65 42/16o a!!o 1+/65 1 /+6 /07 6/21 0/72

Ge%s @e eller& 26/57 45/14 47/ 2 1 /+5 */1C.e%#!als I all#ed

(rodu!"s51/17 5*/06 64/76 26/0* 1 /01

Cas.e ernelsand s.ell l# u#d

+1/6 12/46 12/57 5/46 5/1+

Dool, s&n".e"#!gar%en"s, !ar(e"s

e"!

1+/+ 1*/*4 2+/5 16/07 +/ *

Gran#"esI %ar les - ++/ 4 2+/1+ - -&res and "u es - 1*/05 /* - -

R#!e - ++/1* /22 - -O".ers 245/52 20 /1* 2++/74 21*/2* 22*/+7

o"al 1++1/41 1*24/*1 1657/77 1+64/ 5 7++/1*

'N3ERENCE

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Ma@or e (or" #"e%s )#nan!ed & #@a&a an are %ar#ne (rodu!"s, read&%ade gar%en"s Ia((arels, d#a%onds I .and#!ra)"s/ o"al e (or" "urno$er #n ".e &ear 1 /00 #s 1++1/41,and #" #n!reased "o 1*24/*1 #n ".e &ear 2000-01 a" ".e ra"e o) +7/05 / 'n ".e &ear 2001-02".e "o"al e (or"s "urn o$er de!reased )ro% 1*24/*1 "o 1657/77 a" ".e ra"e o) 10 / Ma@orslu%( !a%e #n ".e &ear 2002-0+ e (or"s de!reased "o 1+64/ 5 a" ".e ra"e o) 17 /

AB E NO/2 O A E? OR KRNO ER 3ROM 'N 'A

ear E (or" "urno$er8a%"/ #n !ores1 -2000 +6*22/42000-2001 44560/+2001-2002 4+*26/72002-200+ 5271 /4200+-2004 6+45/1

'N3ERENCE

A o$e gra(. s.o s .e "o"al e (or"s )ro% 'nd#a )ro ".e &ear 1 -2004/ 'n ".e &ear 1 -00 ".e "o"al e (or"s )ro% 'nd#a #s +6*22/4 ".roug. ".e &ears ".e e (or"s .a$e #n!reased/

.e ra"e o) #n!rease #n ".e &ear 2001-02 ".e e (or"s de!reased !o%(ared "o ".e las" &ear".a" #s 200-01/ .e reason #s %a#nl& a""r# u"ed "o !olla(se o) orld "rade !en"reI slo sdo n o) K/ / e!ono%&/ 3ollo #ng &ears sa ".e gro ". #n e (or"s #" "ou!.ed 6+454/1!rores #n ".e &ear 200+-04/

0

10000

20000

30000

40000

50000

60000

70000

1999-00 2000-01 2001-02 2002-03 2003-04

E (or" "urno$er 8a%"/ #n !ores

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AB E NO/+ 'JA A BAN = HARE 'N O A E? OR KRN O ER 3ROM'N 'A

EAR E (or" "urno$er8a%"/ #n!rores

#@a&a Ban =s E (or"

1 -00 +6*22/4 1++1/412000-01 44560/+ 1*24/*12001-02 4+*26/7 1657/772002-0+ 5271 /4 1+64/ 5

'N ERENCE.e a o$e "a le s.o s ".e #@a&a an s s.are #n "o"al e (or"s )ro% 'nd#a/ 'n ".e &ear

1 -00 #@a&a an =s s.are #n "o"al e (or"s #s +/62 / 'n ".e &ear 2000-01 ".e s.are!a%e "o 4/1 / 2001-02 ".e s.are !a%e do n "o +/7*5 / 2002-0+ ".e s.are redu!ed)ur".er "o 2/5* /

AB E NO/4: 'M OR -COMMO ' D' E KRN O ER l/

NoBus#ness "ransa!"ed e! 02-

Mar!. 0+Mar!. 0+- e! 0+

e!0+-Mar04

1 Eng#neer#ng #"e%s and s(ares 8o".er ".an !a(#"al goods +2/16 26/*6 *4/142 ulses 14/6+ 0/ 1 1/65+ #a%onds 17/25 26/4* 127/744 Me"al I allo&es 6/7 11/1 24/6+5 3ood (rodu!"s #n!lud#ng )ood gra#ns 6/0+ 4/* 26/56 Ele!"ron#! #"e%s 10/64 2*/1 46/677 Ca(#"al goods 14/7 +/5* ++/62* C.e%#!al, drug I %ed#!#nes 7/62 10/27 +0/1*

las"#!s, .d(e,#d(!,($!,e"!/ 4/22 +/ 7 +*/0710 DoodI "#% er 5/41 25/2+ /4211 O".er 127/1+ 24 /*4 +7*/67

o"al 246/67 + 1/2+ *01/2

'N ERENCEMa@or #"e%s )#nan!ed & #@a&a an are eng#neer#ng #"e%s and s(ares, d#a%onds,

(ulsesI !a(#"al goods/ o"al #%(or"s "urn o$er ".e (er#od de!-02 "o %ar 0+ #s 246/67 "o+ 1/2+ a" ".e ra"e o) 5*/6 / 3or ".e (er#od de! 0+- %ar 04 "o"al #%(or"s are *01/2 )ro%+ 1/2+ )or ".e (er#od a" ".e ra"e o) 204/* /

AB E NO/5 O A 'M OR KRO ER 3ROM 'N 'Aear '%(or" "urno$er 8a%"/ #n !rores1 -00 4 67o/72000-01 505+6/52001-02 5141+/+2002-0+ 61412/1200+-04 770+2/+

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0

10000

20000

30000

40000

50000

60000

70000

80000

90000

1999-00 2000-01 2001-02 2002-03 2003-04

'N3ERENCE

.e a o$e "a le s.o s ".e "o"al #%(or"s )ro% 'nd#a )ro% ".e &ear 1 -2000 "o ".e &ear200+-04/ o"al #%(or"s #n!reases )ro% 4 670/7 !rores #n ".e &ear 1 -00 " 770+2/+!rores #n ".e &ear 200+-04/ Bu" ".e ra"e o) #n!rease #s less #n ".e &ear 2001-2002/

AB E NO/6: E? OR CRE ' OKR AN 'NG 3OR HREE 3'NANC'AEAR 3OR 'JA A BAN

3#nan!#al &ear E (or" !red#" 8a%"/ #n !rores2001-2002 420/502002-200+ 5 2/7200+-2004 *52

'%(or" "urno$er 8a%"/ #n !rores

E? OR CRE ' OK AN 'NG 3OR HREE 3'NANC'AEAR

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0

100

200

300

400

500

600

700

800

900

2001-2002 2002-2003 2003-2004

'N ERENCE.e a o$e "a le and ".e gra(. s.o ".e e (or" !red#" o) #@a&a Ban )or ".ree )#nan!#al

&ears/ .e e (or" !red#" #s #n!reas#ng a" ".e .#g.er ra"e !o%(ared "o ".e (re!ed#ng)#nan!#al &ear/ 'n ".e &ear 2001-2002 "o"al !red#" as 420/50 and #" #n!reased "o 5 2/7 #n".e &ear 2002-200+ a" ".e ra"e o) 41 aga#n #n ".e &ear 200+-04 #" #n!reases "o *52 )ro%5 2/7 #n ".e &ear 2002-0+ a" ".e ra"e o) 44 /all ".e &ears s.o ed

AB E NO/7: 'M OR A ANCE OK AN 'NG

er#od '%(or" ad$an!es 8a%"/#n !roresMar!.200+ 5/ *June 200+ */05Mar!. 2004 12/04June 2004 6/1+

'N3ERENCE

.e a o$e "a le and gra(. s.o ".e #%(or" ad$an!es ou"s"and#ng o) #@a&a Ban )ro%".e (er#od %ar!. 200+ and Mar!. 2004, ".a" #s 12/04 !rores/

AB E NO/* E? OR CRE ' A a ERCEN AGE O3 NE CRE ' 3OR3O OD'NG 3'NANCE EAR

3#nan!#al &ear E (or" !red#" a%"/ #nCrores

Ne" !red#"8

A as a o)

2001-2002 420/50 61 /66 6/775

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2002-200+ 5 2/7 7* 1/+4 7/502200+-2004 *52 11045/+1 7/714

'N3ERENCE

A