Pre-shipment Export financing was introduced in 1967 by RBI to make exporters avail short-term working capital finance. Export credit is available in rupee as well as in a foreign currency.…

The finance available to the importer can come from his bank in the form of import loan or from his overseas supplier in the form of trade credit. In the…

Clearing Corporation of India The Clearing Corporation of India Ltd. (CCIL) was set up in 2001. It provides clearing and settlement services for transactions in money markets, government securities and…

Financing of Foreign Trade In international trade, both the suppliers and buyers need short-term credit from financial institutions. For example, an exporter needs bank finance to have sufficient cash flow.…

The treasury department of a bank is divided into the front office, middle office and back office. The forex desk or the dealing room of a bank is a part…

Integrated Treasury Operations The primary function of the treasury department is fund management by maintaining liquidity and managing excess cash profitably through appropriate investments in financial markets. This implies an…

Foreign Exchange System With the advent of globalisation, there has been a rapid increase in cross-border transactions. The increased number of international transactions created a need for a common platform…

Dealing Room Operations The dealing room of a bank is a place where the trading (buying and selling) of foreign currencies takes place. The treasury department of a bank is…

What is International Remittance? A remittance can be defined as money transfer by a foreign worker to an individual in his or her homeland. For example, remittances to India are…

Foreign Currency Accounts In India, the Reserve Bank of India(RBI) has made a distinction between the citizens and non-citizens of India. The RBI makes this distinction on the basis of…