Owned by Government of India, was set up in 1957 Functions under the administrative control of Ministry of Commerce & Industry Managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community

1. ECGC, Exim Bank,
RBI, FEDAI, FEMA
and SWIFT.

2. Export Credit Guarantee
Corporation of India Ltd.
You focus on exports. We cover the risks

3. ECGC
• Owned by Government of India, was set up in 1957
• Functions under the administrative control of Ministry of Commerce &
Industry
• Managed by a Board of Directors comprising representatives of the
Government, Reserve Bank of India, banking, and insurance and
exporting community

4. Vision and Mission
Vision
• The vision of ECGC Ltd. is to excel in
providing export credit insurance and
trade related services.
Mission
• The mission of ECGC is to support the
Indian Export Industry by providing cost
effective insurance and trade related
services to meet the growing needs of
Indian export market by optimal
utilization of available resources.

5. Need for export credit insurance
Political and Economical
Changes in an economy
War/ civil war Economic difficulties
Impose restrictions on
imports
Block / delay
payment
commercial risks
insolvency or protracted
default of buyers
payment risksEconomic and
commercial risks

6. What does ECGC do?
• Provides a range of credit risk insurance covers to exporters against loss
in export of goods and services
• Offers Export Credit Insurance covers to banks and financial institutions
to enable exporters to obtain better facilities from them
• Provides Overseas Investment Insurance to Indian companies investing
in joint ventures abroad in the form of equity or loan

7. How does ECGC help exporters?
• ECGC Offers insurance protection to exporters against payment risks.
• Provides guidance in export-related activities.
• Makes available information on different countries with it’s own credit ratings.
• Makes it easy to obtain export finance from banks/financial institutions.
• Assists exporters in recovering bad debts.
• Provides information on credit-worthiness of overseas buyers.

8. Export Import Bank of India
Guiding the export import business of India

9. EXIM Bank
• Premier export finance institution in India.
• Established in 1982 under Export-Import Bank of India Act 1981.
• Serve as a growth catalyst for industries and SMEs through a wide range
of products and services.
• Wholly owned by Government of India.
• Managed by a Board of Directors, having representatives from the GOI,
RBI, ECGC, public sector banks and the business community.

10. Mission and Vision
“… for providing financial assistance to exporters and
importers, and for functioning as the principal financial
institution for coordinating the working of institutions
engaged in financing export and import of goods and services
with a view to promoting the country’s international trade…”
“… shall act on business principles with due regard to public
interest”
Mission
To develop commercially viable relationships with a target set
of externally oriented companies by offering them a
comprehensive range of products and services, aimed at
enhancing their internationalization efforts
Vision

11. Evolving goals
1982-85
• Export Credits
1985-94
• Export Capability Creation
1994-Today
• Comprehensive products and
services

12. Operational Philosophy
Catalyst for Financing
Projects Products Services
Through
Financing Programs
Value added business
advisory services
Research and
Analysis
International Trade
Financing Promoting Facilitating

13. Range of Products & Services
At all
stages of
business
cycle
Pre Shipment
Post
Shipment
Investment
Abroad
Consulting/
Advisory
Services
Import
Finance
Export
Product
Development
Export
Production
Marketing
Advisory

14. Financing Programs
Various
Currencies
Export Credit
Medium/ Long term Lines of credit
Buyers Credit
Suppliers Credit
Short term Pre/post shipment credit
Import Credit
Import loan for capital goods
Bulk import loan for raw material import
Loans for
exporting
units
Term loans for
expansion/diversification/new projects
Term loans for overseas equity investment
Direct equity stake in Indian/ Overseas
ventures of exporting companies

15. RBI as the Exchange Control
Authority
RBI is the apex bank that intervenes, supervises,
controls the foreign exchange markets in order
to create an stable and active exchange market.

16. Roles of RBI in promoting exports
• RBI plays the role of Monetary Authority and Manager of Foreign
Exchange Issue Of Directions -The 'Exchange Control Manual'
• The RBI has taken some measures to enable timely and hassle free flow
of credit to the export sector
• Rationalization and liberalization of export credit interest rates
• Special financial package for large value exporters, export finance for
agricultural exports, Gold Card Scheme for exporters, etc.

17. Authority of RBI in Foreign Exchange Markets
• Controlling domestic money supply to influence foreign exchange
market
• To actively intervene in forex market as a requirement of ‘managed
float’
• To review main policy relating to management of reserves
• To compile and make half yearly reports on management of foreign
exchange

18. Functions of RBI in foreign exchange reserves
1
• Support and maintain confidence in the
policies for monetary and exchange rate
management
2
• Limit external vulnerability by maintaining
foreign currency liquidity to absorb shocks
3
• Provide a level of confidence to markets that
a country can meet its external obligations

19. Functions of RBI in foreign exchange reserves
4
• Demonstrate the backing of domestic
currency by external assets
5
• Assist the government in meeting its foreign
exchange needs and external debt obligations
6
• Maintain a reserve for national disasters or
emergencies

20. Objectives of Forex Department relating to Forex
transaction
Maintenance of Forex market of India
For capital account transaction
Collects data relating to Forex transaction
Engaged on on-going basis in reviewing
and simplifying the procedures and rules
Entrusted with responsibility of licensing
money changers
Ensures timely realization of exports
Lays down the policy guidelines for risk
management
Standing Consultative Committee on
Exchange Control

21. FEMA
The Foreign Exchange Management Act, 1999

22. The Act
• To consolidate and amend the law relating to foreign exchange with the
objective of facilitating external trade and payments and for promoting
the orderly development and maintenance of foreign exchange market
in India
• Passed in the winter session of Parliament in 1999, replacing the
Foreign Exchange Regulation Act (FERA) (1949)

23. Why not FERA?
• FERA did not succeed in restricting activities, especially the expansion of
TNCs (Transnational Corporations)
• The introduction of FOREIGN REGULATION ACT was done in 1974, a
period when India’s foreign exchange reserve position wasn’t at its best

24. Main Features of FEMA
• Activities such as payments made to any person outside India or receipts from them, along
with the deals in foreign exchange and foreign security is restricted. It is FEMA that gives
the central government the power to impose the restrictions.
• Without general or specific permission of the MA restricts the transactions involving foreign
exchange or foreign security and payments from outside the country to India – the
transactions should be made only through an authorized person.
• Deals in foreign exchange under the current account by an authorized person can be
restricted by the Central Government, based on public interest generally.
• Although selling or drawing of foreign exchange is done through an authorized person, the
RBI is empowered by this Act to subject the capital account transactions to a number of
restrictions.
• Residents of India will be permitted to carry out transactions in foreign exchange, foreign
security or to own or hold immovable property abroad if the currency, security or property
was owned or acquired when he/she was living outside India, or when it was inherited by
him/her from someone living outside India.

25. FEMA vs FERA
FEMA
FEMA (49 Sections)
Plays a role of facilitator which regulates &
manages of FE transactions
Civil Act.- prosecution to prove guilt
NRI status
Penalty
Regulation, Discretion & Permission
FERA
FERA (81 sections)
Acted as controller for Conservation of FE
Criminal Act- accused to prove innocence
NRI status not compatible with IT Act
Penalty & prosecution
Only regulation

26. FEDAI
Foreign Exchange Dealer's Association of India

27. What is FEDAI?
• Association of banks dealing in foreign exchange in India
• Typically called Authorized Dealers – ADs
• Self regulatory body incorporated under Section 25 of The Companies
Act in 1958
• Major activities include
• framing of rules governing the conduct of inter-bank foreign exchange business
• liaison with RBI for reforms and development of forex market

28. Role and Responsibilities of FEDAI
• Guidelines and Rules for Forex Business.
• Training of Bank Personnel in the areas of Foreign Exchange Business.
• Accreditation of Forex Brokers
• Advising/Assisting member banks in settling issues/matters in their dealings.
• Represent member banks on Government/Reserve Bank of India/Other Bodies.
• Announcement of daily and periodical rates to member banks.
• Formulating code of conduct for dealers working in banks exchange brokers for
dealing between each other
• Prescribing margin for calculating exchange rates for various merchant
transactions

29. Society for Worldwide
Interbank Financial
Telecommunications
The global provider of secure financial messaging
services

30. About SWIFT
• SWIFT is a global member-owned limited liability cooperative
headquartered in Belgium
• World’s leading provider of secure financial messaging services
• Connect more than 11,000 banking and securities organizations, market
infrastructures and corporate customers in more than 200 countries
• Enabling them to communicate securely and exchange standardized
financial messages in a reliable way.

31. About SWIFT
• SWIFT is neither a Financial Institution nor a payment system: SWIFT is
solely a carrier of messages
• SWIFT does not hold assets nor manage accounts
• Information in messages transmitted through SWIFT is controlled
exclusively by the sending and receiving financial institutions

32. Why Swift for money transfer?
It is a safe and reliable way to send and receive money worldwide.
It has no upper limit for the transaction amount.
You are allowed to issue money transfers in all major foreign currencies.
It processes the transaction very fast.
It issues money transfers on a periodic basis with the help of standing instruction.
The fees differ with the amount.

33. Swift Partners
Partners
Solution
Service
Business
Network

34. SWIFTNet
SWIFTNet is SWIFT internet protocol (IP) based messaging platform
SWIFTNet offers four messaging services:
SWIFTNet FIN
SWIFTNet Interact
SWIFTNet FileAct
SWIFTNet Browse

35. SWIFTNet Security
Offers:
Encryption
Authentication
Control
Integrity
Control
Non-
repudiation
SWIFTNet runs on SWIFT’s secure Internet Protocol
network (SIPN), a protected, private network

36. SWIFTNet Message Addressing
• In order to ensure error-
free identification of
parties in automated
systems,SWIFT
developed the Bank
Identifier Code (BIC).
• The BIC is a unique
address which, in
telecommunication
messages, identifies
precisely the financial
institutions involved in
financial transactions
• BICs are meant for
universal usage and not
just on the SWIFT
network.
BANKCCLL(BIC8)
Bank
code– 4
char
code -
unique
Country
code –
ISO
Country
code 2
char
Location
Code – 2
char
code
BANKCCLLBBB(BIC11)
BANK
CODE –
4 char
code -
unique
Country
code –
ISO
Country
code 2+
Location
Code – 2
char
code
Branch
Code - 3
char

37. Bibliography
• https://www.ecgc.in/
• http://iibf.org.in/documents/caiib_riskmgt_modc.ppt
• https://www.eximbankindia.in
• https://www.slideshare.net/ZenobiaSukhia/role-of-rbi-in-the-mgmt-of-forex-mkt-in-
india-37075089
• http://www.eximguru.com/exim/guides/export-finance/ch_15_fedai_guidlines.aspx
• http://www.fedai.org.in/
• https://www.swift.com/about-us/media-centre
• https://www.slideshare.net/gxsinc/focus-on-regional-banking-meeting-the-
connectivity-needs-of-commercial-clients