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FOREX INFRASTRUCTURE



We have been catering to our exporter and importer clients since 1979. We have 22 forex designated branches across India and plan to increase the presence in all potential areas in the coming days.









We have an International Division at Mumbai, the financial capital of India. A team of experienced and dedicated Foreign Exchange dealers cater to the various needs of the exporters and importers. The services provided by International Division include consultancy and advisory service on forex market related issues and execution of the forex transactions at a very competitive rate beneficial to the forex clients.


In the liberalized forex market of India, a lot of changes happen on a regular basis. To help our Branches / Exporters / Importers to comply with FEMA / RBI guidelines, a Central Processing Centre is set up at Mangalore with a parallel centre at Mumbai. A team of highly experienced staff headed by a Deputy General Manager undertake all the forex transactions of the branches duly complying with FEMA/RBI and other guidelines.








A specialized forex team, the Forex Support Group, operates from our Head Office, to cater to various credit related issues pertaining to exports and imports.





FOREX SERVICES


EXPORTS

Exports are crucial for the Indian Economy and are given priority. We at Karnataka Bank treat export credit as National Priority and offer a bouquet of export related services

  • Pre-Shipment Credit in Rupee and foreign currency (PCFC)
  • Post-Shipment Credit in Rupee and foreign currency
  • Export Collection Bills
  • Export LC advising
  • Export LC confirmation
  • Inward remittance facility

PRE-SHIPMENT CREDIT IN RUPEE AND FOREIGN CURRENCY (PCFC)

Pre shipment credit is offered to exporters for financing the purchase of raw material and various other activities prior to the shipment of the goods.Pre shipment credit is granted based on the letter of Credit in favor of the exporter or a confirmed and irrevocable order for the export of goods from India.Pre shipment is released either on running account basis or on order to order basis.The period of pre shipment credit depends on the type of product produced / type of service offered. In a nutshell, the period will be in line with the time required from the procurement stage till shipment stage.Pre shipment will be repaid by converting it into post-shipment credit. We also offer PCFC to enable exporters to have access in India to foreign currency funds at internationally competitive rates.

POST-SHIPMENT CREDIT IN RUPEE AND FOREIGN CURRENCY

Post shipment is essentially an advance against export receivables which is in the form of shipping documents.

Post shipment credit may be availed either by Purchase / discount / negotiation of export bills or by as advance against export bills sent for collection. The exporter can avail post-shipment credit either in rupee or in foreign currency.

Exporters need not have a separate sub limit for PCFC. It is an integral part of pre-shipment credit sanctioned.

EXPORT COLLECTION BILLS

We ensure hassle free collection of export proceeds through our correspondent network for the export bills routed through our bank. We have tie-ups with internationally reputed courier agencies to ensure prompt, efficient and timely dispatch of your documents.

EXPORT LC ADVISING

We check the authenticity of export LC issued in your name and ensure that it is delivered to you in time. You may then ask your buyers to route the LCs through Karnataka Bank for advising to you. We will ensure its timely delivery. Our expert advisory team can help you in understanding the LC terms and assist you in preparing the documents.

INWARD REMITTANCE FACILITY

Through our vast correspondent banking network, funds can be transferred from anywhere in the world to your account with us. The fund transfer is through a highly secured and fast SWIFT mode.

GOLD CARD FOR EXPORTERS

In order to recognize your performance in exports, we as a token of our gesture award you with "Gold Card", which is accompanied with host of entitlements to enthuse you to do further more.

Benefits include *

  • Concession of 50 bps on interest rate upto 270 days incase of pre shipment and upto 180 days in case of post shipment finance.
  • 50% concession in service charges.
  • The in principle limits will be sanctioned for a period of 3 years subject to annual review.
  • A stand by limit of 20% of sanctioned limits will be additionally made available to meet urgent working capital needs.
  • PCFC and FCDL requirements of the Gold Card holders will be met on priority basis.
  • Fast disposal of credit applications.

IMPORTS

We offer the following Import related services

  • Import Letter of Credit
  • Import Bill collection
  • Trade Credit
  • Outward remittances

IMPORT LETTER OF CREDIT

Business by Letter of Credit is historically the better way to deal with unknown traders / manufacturers in foreign land. You may bank on our reputation and goodwill in the international market by availing Letters of Credit facility from us for your purchases in international trading operations.

We have built an extensive correspondent banking network to get the LCs advised to the beneficiary expeditiously. Through our relationship with Credit Report agencies, you will get first hand information about the overseas supplier at a competitive price.

IMPORT BILL COLLECTION

Receiving import bills on collection basis will help in reducing the cost of import transaction. We provide hassle free import document handling service. With our strong correspondent banking relationship, you can remit the funds to your supplier whenever you choose to remit the funds.

When you receive import documents directly from the overseas supplier subject to certain conditions, we ensure quick and efficient settlement of your direct import bills through our strong correspondent banking network worldwide.

TRADE CREDIT

To make use of global interest rate arbitrage and to take benefit of lower interest rates in the overseas markets, we will arrange Buyers' Credit for your imports at a competitive rate.

OUTWARD REMITTANCES

Through our vast correspondent banking network, funds can be remitted from your account (subject to ceilings as per FEMA) to anywhere in the world. The fund transfer is through a highly secured and fast SWIFT mode.



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