Schedule of Charges

Chapter 9- Schedule of ChargesI. Exports Type of Transaction Charge 1. Bills purchased/ discounted/ negotiated a. Processing charges for each foreign Minimum Rs.100/- (for bill upto US currency export bill $ 5000/- or equivalent) Minimum Rs.500/- (for bill over US $ 5000/- or equivalent) b. Processing charges for each Rupee 0.25% minimum Rs.100/- per bill export bill c. For forwarding export documents Minimum Rs.100/- on which no collection commission or exchange accrues to the bank (i.e. from one bank to the other in India). d. Reimbursement charges under Letter Minimum Rs.500/- of Credit. e. Forwarding export documents to 0.20% another bank for negotiation to whom L/C is restricted by the bank which has Booked the forward contract. f. For joining customer’s guarantees and 0.25% minimum Rs.50/- giving guarantees on behalf of custom- ers in respect of discrepant documents g. In case of overdue export bill purchased/ Rs.250/- per quarter discounted/ negotiated where proceeds are not received within the stipulated period of 6 months. i. Applicable also in case of deferred exports if the relative export proceeds are not received within the stipulated period. ii. Not applicable in case of bills drawn on countries with externalisation problems but paid in local currency and the exporter has obtained necessary approval from Reserve Bank of India. 2. Collection Bills a. (Both foreign currency and rupees export bills) i. Equivalent of uptoRs.50,000 0.25% minimum Rs.25/- ii. Equivalent of Rs.50,000 and above but unto Rs.2,00,000. 0.125% minimum Rs.125/- iii. Equivalent of Rs.2,00,000 and above 0.0625% minimum Rs.250/- b. Overdue export bill sent for collection Rs.250/- per quarter Rs.250/- per quarter where proceeds are not received within 6 months. i. Applicable also in case of deferred exports if the relative proceeds are not received within the stipulated period. ii. Not applicable in case of bills drawn on countries with externalization problems but paid in local currency and the exporter has obtained necessary approval from Reserve Bank of India. c. Where proceeds of bills are received 0.125% through a bank other than the collecting bank at the instance of exporter/ overseas buyer additional charge. 3. Certificates Issuance of certificated/ attestations in Rs. 20/- flat. (Banks may waive this respect of export transactions. Charge in their discretion) 4. Registration of export contracts. Minimum Rs.100/- per registration & Minimum Rs.50/- for every amendment. 5. For advance against duty drawback 0.50% with a minimum of Rs50/-. Entitlements. 6. Export Letter of Credit a. Advising letter of credit Minimum Rs.200/- per letter of credit. b. Advising amendment Minimum Rs.100/- per amendment. c. Confirmation charges i. Commitment charges 0.15% for every quarter or part thereof. ii. Usance charge 0.15% for bills upto 10 days sight. 0.30% for bills over 10 days and upto 3 months’ sight. 0.30% for the first 3 months plus 0.0750% for every months in excess of three months, for bills over 3 months sight. Note: Where the amount of a L/C exceeds Rs.8 crores (or in equivalent foreign currency) banks will recover charges at their discretion subject to minimum charge recoverable on Rs.8 crores. d. Transfer of letter of credit. Minimum Rs.200/- for each advice of transfer. e. Acceptance commission for accepting 0.15% per month. usance drafts to be drawn on and accepted by banks in India.II. Imports Types of Transaction Charge 1. A. Opening of Import Letters of Credit a. Commitment charge 0.15% for every quarter or part thereof. b. Usance charge 0.15% for bills upto 10 days sight. 0.30% for bills over 10 days and upto 3 months’ sight 0.30% for the first 3 months plus 0.0750% per month in excess of 3 months for bills over 3 months sight. Note: Where the L/C amount exceeds Rs.8 crores On the first Rs.8 crores Normal rate as above. On the next Rs.8 crores One-half of the above rates. On the balance One-fourth of the normal rates. B. Where the L/C amount is less than Minimum Rs.100/- Rs.10,000/- 2. Amendments to L/C a. Extension of validity of L/C within Minimum Rs.250/- 3 months period (for which commitment charge has been collected) b. Where extension of validity of credit Fresh commitment charge of 0.15% per goes beyond 3 months (for which quarter or part thereof, minimum Rs.250/- commitment charge has been collected upto 3 months). c. In case of enhancement of value of credit Both commitment and usance charge will be collected as stated under 1.A. (a & b) above. d. In case of amendment extending the tenor Appropriate additional usance charge. of the Bill of Exchange. e. Amendment other than extension of Minimum Rs.250/- validity or enhancement of tenor of the Bill of Exchange. f. For revival of expired L/Cs within Commitment and usance charge from the 3 months from date of expiry. Date of expiry to the validity date of the revived L/C. 3. Countersigning bills of exchange drawn on 0.085% per month with a minimum of importers under L/Cs 0.25% for the tenor of the bill in addition to usance and commitment charges as above. 4. Revolving Letters of Credit a. Commitment charge (1) 0.15% for every quarter or part thereof on the maximum amount of drawings permitted at any one time during the period from date of establishment of L/C to the last date of validity. (2) On each amount reinstated from the date of reinstatement to the date of subsequent reinstatement or the last date of validity of L/C. (Minimum charge for reinstatement Rs. 100/-). b. Usance charge (1) 0.15% for bills upto 10 days sight (2) 0.30% for the bills over 10 days sight and upto 3 months sight. (3) 0.30% for the first 3 months plus 0.0750% for each month in excess of 3 months for bills over 3 months’ sight. 5. For establishing L/Cs/ Guarantees on 0.40% per quarter or part thereof. Deferred payment terms covering import of goods. Note: If the Deferred Payment Guarantee is backed by a counter guarantee of the Government of India the commission recoverable will be at 0.0625% instead of 0.40% per quarter. 6. Amendments a. Extending validity period within 3 months (for which commission has Minimum Rs. 400/- already been collected). b. Where validity period is extended beyond Further commission at 0.40% per quarter or 3 months period part thereof. 7. Commission on import bills (under L/C) a. Foreign currency bills at the time of 0.15% crystallization or retirement whichever is earlier. b. Import bills received under Letter of 0.25% Credit on which no exchange benefit Accrues to opening bank. c. i. Rupees bills at the time of retirement. Additional 0.15% ii. If bills are not retired within 10 days from date of receipt of bills in case of demand bills and on the due date in case of usance bills. 8. Commission on import bills (not under L/C) a. Where exchange margin is earned on a 0.25% Minimum Rs. 50/- foreign currency bill. b. On each bill drawn in Rupees and on 0.50% Minimum Rs. 50/- each bill drawn in foreign currency on which no exchange margin accrues. c. On Rupee import bills received on collection basis exceeding Rs. 1 crore banks shall charge commission as under: i. On the first Rs. 1 crore At full rates as specified above. ii. On the amount which is in excess of Rs. 1 crore. At one-half of the rate specified above. d. On bills/ documents covering project imports under inter-government aid scheme (including those financed by international agencies like World Bank IMF, ADB, etc.) where no letters of credit are opened, commission shall be collected at a flat rate irrespective of the amount of each drawing at 0.03125%. e. In case of documents received by importers directly from overseas exporters, commission at half the rates applicable for import bills for collection should be recovered at the time of effecting the remittance. 9. If the overseas remitting bank or the exporter Additional commission of 0.25% abroad requests proceeds of collection bills to be remitted in a currency other than the currency of the bill. 10. Local Payments Local payments out of proceeds of import Minimum Rs. 250/- bill such as payments in connection with barter business or payments to cases of need etc. 11. Parcels When the value of the parcel exceeds Rs. 1 lac and advalorem charge based on Rental value and insurance cost will be Collected on a monthly basis.III. Inward Remittances 1. Type of Transaction Exchange and Interest rates applicable a. Encashment of TTs/ Purchase of MTs/ Current TT buying rate (noexchange DDs in respect of which cover has been margin or interest to be charged). Received in Nostro Accounts. b. Encashment of TTs/ Purchase of MTs/ Current TT buying rate plus exchange DDs where reimbursement is to be margin of 0.125%. Interest to be recovered obtained in cover by drawing demand separately from the customer at the rate of drafts on overseas branches or corres- 15% per annum for a transit period of pondent banks. 10 days. c. Encashment of customer’s personal TT buying rate plus exchange margin of cheques, demand drafts, international 0.15%. Interest to be recovered separately money orders, banker’s pay orders, for a transit period of 15 days from the payable abroad. Customer at domestic commercial rate of interest. 2. Clean Payments a. Effected under instructions from foreign Rs. 25/- (Banks may waive this charge in correspondents. Their discretion) b. Where the inward remittance has to be 0.10% Minimum Rs. 10/- be paid in foreign currency by way of a demand draft/ mail transfer/ payment order/ telegraphic tansfer. 3. Certificates a. For issuing bank certificates on security Rs. 25/- per certificate. (Banks may waive paper in respect of clean remittances this charge in their discretion) from abroad and/ or for encahment of foreign currency travelers cheques/ foreign currency notes. b. Bank’s own letter head (where Rupee Rs. 20/- per certificate. (Banks may waive value of inward remittance does not this charge in their discretion) exceed Rs. 5,000/-) IV. Outward Remittances Type of Transaction Exchange and Interest rates applicable a. On all foreign currency outward Minimum Rs. 100/- remittances not being proceeds of import bills. b. Rupee remittances i. Upto s. 10,000/- 0.25% minimum Rs. 10/- ii. Over Rs. 10,000/- 0.125% minimum Rs. 25/-V. Clean Instruments for collection Type of Transaction Exchange and Interest rates applicable On all clean instruments sent abroad 0.25% minimum Rs. 10/- (Banks in their Discretion may waive the commission for instrument upto equivalent of Rs. 5000/-) Type of Transaction ChargeVI. Merchanting Trade- (If foreign currency remittances are received in advance by the export from the overseas buyer and the funds are held in nostro account at the specific request of the exporter) Commission – a. On import bills received under back- 0.25% to-back L/C. b. On export bills drawn by merchant 0.25% exporters.VII. Forward Contracts For booking sale and purchase contracts Minimum Rs. 250/- per contract For each request for early delivery, extension Minimum Rs. 100/- + swap cost and or cancellation. Cancellation charges where applicable.VIII. Foreign currency travelers cheques Sale of foreign currency traveler’s cheques a. Commission on Rupee equivalent Not exceeding 1% value of travelers cheques sold to Indian residents b. Commission on foreign currency 0.25% travelers cheques issued against foreign currency remittance at the request of the beneficiary.IX. Guarantees a. Guarantees to public authorities except 0.15% per month with a minimum of 0.25% item ‘b’ below. for the specified period of liability plus an additional six months. If the guarantee is redeemed (i.e. returned duly cancelled) before the expiry of the additional six months, the additional charge may be refunded proportionately. b. Guarantees given to public authorities 0.15% per month with a minimum of 0.25% for export of goods ex-bonded warehouses for the specified period of liability. without payment of excise duty. c. For countersigning of Llyod’s General 0.15% per month with a minimum of 0.25% Average Bond and Guarantee. on the amount which would be required as a Cash deposit. d. Guarantee in favour of shipping Minimum Rs.200/- per guarantee companies/ agencies for clearance of goods pending production of bill of lading relating to imports under L/Cs opened by the guarantor bank. e. Guarantees covering missing bills of 0.25% at the time of issue of the guarantee. lading relating to imports not covered If the guarantee remains current beyond by ‘d’ above. three months additional commission of 0.15% per month or part thereof as long as the guarantee remains current thereafter. f. Export performance guarantees for 1. In the case of guarantees covered by projects exports which include ECGC counter guarantees, banks shall collect commission as well as ECGC premium at the under-noted rates and remit the collected premium to the ECGC.i. Bid-bondsii. Bonds for earnest moneyIII. Guarantees for advance payment ECGC ECGC Bank Total made by foreign buyers to Indian counter premium comm.- cost to exporters/ contractors. guara- w.e.f. ission expor- ntees 1.1.82 w.e.f. ters 13.7.81 ________________________ per annum __________________________________ 75% cover Upto 0.55% 1.35% Excess Rs.1 over Rs crore 1 crore 0.80% 0.30% 1.10% 90% crore Upto 0.95% 0.45% 1.40% Rs.1 crore Excess 0.95% 0.25% 1.20% over Rs.1 crore _________________________________ 2. In case of guarantees issued against 100% counter-guarantees issued by Government of India, bank commi- ssion shall be as under: Upto RS. 1 crore: 0.45% p.a. Excess over Rs.1 crore: 0.25% p.a. 3. In case of guarantees issued against cash deposit to the extent of bank’s liabilities commission shall be charged at the rate of 0.50% per annum 4. In case of guarantees which are not covered by cash deposits or ECGC/ Government of India counter guarantees, commission shall be charged at the rate of 1% per annum. 5. In case of bid bonds 25% of comm.- ission collected at the time of issue. If the bid materia-lises the balance 75% commission shall be collected. If the bid gets frustrated there will be no refund to commission collected. g. Export performance guarantees, Bid 0.085% per month with a minimum bonds etc. (other than for Project of 0.25% Exports) h. Export performance guarantees covering 0.085% per month with a minimum export obligations in terms of Import of 0.25% for the specific period of Trade Control Regulations. Liability. In case of early redemp- tion of the guarantee a minimum of 50% of the commission for the unexpired period i.e. from the date of redemption to the expiry date may be refunded. i. All other guarantees 0.15% per month with a minimum of 0.25% for the specified period of liability. Minimum charge for any guarantee Rs.250/-X. Out of pocket expenses such as telex/ cable/ correspondent bank’s charges. Actuals will be recoveredXI. Stamp Duty Will be recovered at the rates prescribed by Government from time to time.Note 1: In addition to the above schedule of charges, interest wherever applicable is payable as mentioned in the various Rules.Note 2: the charges included in the above schedule of charges shall be collected irrespective of whether a margin is obtained or not and shall not refunded or remitted in any event except a genuine mistake in collecting them on the part of the bank, or specially permitted in the Rule itself. All charges are recoverable upfront unless specifically provided for in the Rule.