Pre Promotion on FX Circualar Updation

FX-08/2014-15 dated 27 May 2014 Transfer of funds from NRO account to NRE Account – RBI, vide AP (DIR Series) Circular no 106 dated 18.02.2014 had modified the periodicity of reporting remittances made by NRIs / PIOs / Foreign Nationals out of the NRO from Quarterly to Monthly Data on Transfers from NRO to NRE account is t in addition to outward remittances on account of sale of immovable property and other assets abroad from NRO accounts.

FX-12/2014-15 dated 24 Jun 2014 Any person resident in India i) may take outside India (other than to Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.25,000 (Rupees twenty five thousand only); and   ii) who had gone out of India on a temporary visit, may bring into India at the time of his return from any place outside India (other than from Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.25,000 (Rupees twenty five thousand only). Any person resident outside India, not being a citizen of Pakistan and Bangladesh and also not a traveler coming from and going to Pakistan and Bangladesh, and visiting India may take outside India currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. 25,000 (Rupees twenty five thousand only) while exiting only through an airport may bring into India currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. 25,000 (Rupees twenty five thousand only) while entering only through an airport

FX- 17/2014-15 dated 08-08-2014 Foreign Account Tax Compliance Act – FATCA   Key areas for consideration: 1. Identification of all US accounts 2. KYC documentation of US account holder records 3. Obtaining waiver from account holders and closure of “Bad Accounts”. The identification of US accounts is required in respect of all new accounts opened on or after July 1, 2014 Identification in respect of all pre-existing accounts as on June 30, 2014 is required to be done by June 30, 2016 except for high value individual accounts, which needs to be done by June 30, 2015.

FX-19/2014-15 dated 21-08-2014 SUB: APPLICABILITY OF FORM 15 CA &15 CB ON PAYMENTS MADE TO NON RESIDENTS- CBDT REVISED DIRECTIONS (i) .the information in Part A of Form No.15CA, if the amount of payment does not exceed fifty thousand rupees and the aggregate of such payments made during the financial year does not exceed two lakh fifty thousand rupees.   (ii). the information in Part B of Form No.15CA for payments other than the payments referred in clause (i) after obtaining: The information in Form No. 15CA shall be furnished by the person electronically to the website designated by the Income-tax Department and thereafter signed printout of the said form shall be submitted to the authorized dealer, prior to remitting the payment. An income-tax authority may require the authorized dealer to furnish the signed printout referred to in sub-rule (2) for the purposes of any proceedings under the Act. Please note that for all remittances exceeding Rs.50, 000/- for all outward remittances including for Import purposes (including Advance Payments) as well as items not mentioned in the specified list branches should obtain Form 15CA duly completed in Part B & Form 15CB or other documents mentioned in rule Annexure to CO: ID circular 19/ 2014-15 dated 21.08.2014 contains 28 items for which submission of 15CA/CB is not required

FX 28/2014-15 dated dated 30.10.2014   RE-INTRODUCTION OF PENALTY FOR PRE-MATURE WITHDRAWAL OF NRE AND NRO ERM DEPOSITS AND EXERCISE OF DISCRETION TO DISALLOW FORECLOSURE OF LARGE VALUE TERM DEPOSITS Deposits Up to Rs.15 Lakhs - No penalty to be levied for pre closure of deposits i.e.eligible interest rate will be the applicable card rate for the actual period run prevailing on the date of deposit Deposit above Rs 15 Lakhs – Applicable card rate for the actual period run prevailing on the date of deposit less 0.75% per annum as fore closure charges

SUB: REVISED PREMIUM ON ECGC WHOLE TURN OVER PRE SHIPMENT & POST SHIPMENT (WTPC &WTPS) COVERS Premium on WT Packing Credit is charged to the account holder and in case of WT Post Shipment credit it is borne by the Bank   While renewing the policy for the current year from 01.07.2014 to 30.06.2015, ECGC has put certain new conditions besides increasing the premium payable on the WTPC & WTPS covers. 1. The rate of premium has been increased from 6 paise per Rs 100 per month to 6.5 paise per Rs 100 per month with effect from 01.07.2014. Bank also needs to cover all its Pre- shipment advances granted to all its export clients including Government Companies, by OBU under WTPC. In other words no exclusion is permitted under the WTPC cover. 2. It has raised premium rate for Post Shipment category to 13.5 paise per Rs 100/- per month from 5.50. paise paid as per last policy.

FX 34/2014-15 dated dated 12.12.2014 SUB: OPENING OF FCNR (B) ACCOUNT THROUGH EXCHANGE OF CURRENCY   FCNR (B) accounts can be opened by a).Inward remittance in convertible currency received in the name of Depositor b).By transfer from NRE account maintained in the name of depositor and c) through conversion of foreign currency notes brought by the depositor on his temporary visit to India While encashing /converting foreign currency notes where the value of foreign currency alone exceeds USD 5,000 or its equivalent, it should have been declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India The charges incurred for obtaining the Foreign demand draft or transfer to our Nostro account should be borne by the Depositor only and not paid by the Bank. RBI during their annual inspection have taken strong exception to non adherence of guidelines by the branches.

FX 40/2014-15 dated dated 12.01.2015   As per ECIB WT packing credit, the liability of ECGC ceased once bill are submitted to the bank, irrespective of whether the bank has sent the bills under collection or purchase or negotiation. Hence branches should convert pre-shipment pay premium even bills sent on collection. Otherwise coverage will not be available

FX 41/2014-15 dated dated 19.01.2015   Renewal of ECGC coverage from 01.07.2014-30.6.2015 Coverage for ECIB Packing Credit For losses upto Rs 612.94 lakhs – 75% For losses beyond Rs 612.94 lakhs – 65% However in respect of small exporters – turnover not exceeding Rs 50 lakhs -90% The maximum amount upto which ECGC will pay claim under PC during one ECIB year is Rs 350 Crores Post Shipment Credit Non – Policy Holders – 50% Policy Holders – cover for bills drawn on Non-associates – 75% Cover for bills drawn on associates – 50% The maximum amount upto which ECGC will pay claim under PS during one ECIB year is Rs 110Crores

FTP 2015-20 Effective From 01 Apr 2015 Valid for 5 years MEIS SEIS Duty Scrip / Transferable / Payment of Import Duty Review after 30 months All previous incentives scrapped

Export Houses One Star - USD 3 mio Two Star - USD 25 mio Three Star - USD 100 mio Four Star - USD 500 mio Five Star - USD 2000 mio Double weightage for MSME – only one star status

Classification of Export Finance Pre-shipment Finance Packing Credit Advances against receivables Advance against Cheque Post-shipment Finance Export Bills purchased/discounted Export Bills negotiated Advance against Bills sent on collection Advance against export on consignment basis Advances against undrawn balances Advances against Receivables

INCOTERMS -2010 ANY MODE OF TRANSPORT (SEA, TRUCK, AIR, RAIL) SEA & WATERWAY TRANSPORT ONLY (CIP) Carriage and Insurance Paid (CPT) Carriage Paid To (DAT) Delivered At Terminal (DAP) Delivered At Place (DDP) Delivery Duty Paid (EXW) Ex Works (FCA) Free Carrier (CFR) Cost of goods and Freight (CIF) Cost, Insurance and (FAS) Free Alongside Ship (FOB) Free On Board