Post-shipment Export Credit in Foreign Currency
Post-shipment Export Credit in Foreign Currency: EBR
Rediscounting of Export Bills Abroad scheme (EBR) –
Banks usually arrange a “Bankers Acceptance Facility (BAF)” for rediscounting the export bills without any market and duly covered by collateralized documents. Each bank can have its own BAF limits fixed with an overseas bank or a rediscounting agency or an arrangement with any other agency such as factoring agency. The exporter, on their own, can arrange for themselves a line of credit with an overseas bank for discounting their export bills.
It covers export bills with Usance period up to 180 days from date of shipment.
The Rupee equivalent of discounted value of export bills will be payable to exporter & same should be utilized to liquidate the outstanding export packing credit (PCFC). If there is no PCFC, Foreign Currency amount is converted at prevailing TT Buying rate & INR is credited. In case of overdue bills, bank charge 2% above rate of rediscounting of foreign exchange loan from due date to date of crystallization. On Demand bills for NTP & Against Usance bills up to 6 months from date of shipment, Intt rate should not exceed 1% over LIBOR.