6A.18
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Forfaiting
(i) Export-Import Bank of India (Exim Bank) has introduced a scheme of forfaiting as an instrument of financing exports. It would be in order for authorised dealers to allow remittance of commitment fee/service charges payable by the exporter as certified by the Exim Bank. Such remittance may be permitted in advance in one lump-sum or at monthly intervals as certified by the Exim Bank. Payment of these fees may be treated analogous to bank charges. In case, however, the commitment fee and other charges exceed 1.5% of the invoice value, the exporter should be advised to obtain prior approval of Reserve Bank.
(ii) Authorised dealers have also been permitted to introduce a scheme of forfaiting of medium term export receivables, if they so desire. The procedure as followed by Exim Bank may be followed by authorised dealers in this regard.