FOREX IN B Amp I

FOREX IN BANK OF BARODA
AN OVERVIEW OF BANKING SECTOR IN INDIA

Till the end of late 18th century, Banks in India, in the modern sense of the term, were in the 2019th. During the time of the American Civil War, the supply of cotton to Lancashire (The textile hub of UK) stopped from the Americas. At that time some banks were opened, which functioned as entities to finance industry, including speculative trades in cotton. Most of the banks opened in India during that period could not survive and failed because of the high risk which came with large exposure to speculative ventures. It was a disaster for depositors who lost money and therefore lost interest in keeping deposits with banks. In the year 1786, The General Bank of India was the first bank to come into existence in India. And then, almost a century later, in the year 1870, The Bank of Hindustan became the 2nd bank in India. Unfortunately, both these banks are now defunct. The oldest bank to be still in existence, that too as the largest bank in India, is the State Bank of India. Albeit, the name was not the same as today rather was "The Bank of Bengal which started its operations in Calcutta in June, 1806. Interestingly, if people think that the entry of foreign banks in India is only a post-reform phenomenon, they are absolutely incorrect. In fact, in as early as 1850s, foreign banks like Credit Lyonnais started their Calcutta (now Kolkata) operations. At that point of time, Calcutta was the most active trading port, thanks to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935.
ST. ANDREWS COLLEGE
Page 1
At least 94 banks in India failed during the years 1913 to 1918. This was really a turbulent time for the world as a whole and the banking sector in India specially. This was the period which witnessed the First World War (1914-1918). Since then through the end of the Second World War (1939-1945), and two years thereafter until India achieved independence, were very challenging period for Indian banking. The years of the First World War were turbulent, and it took toll on many banks which simply collapsed despite the Indian economy gaining indirect boost due to war-related economic activities. There were at least 106 numbers of banks which downed shutters during that period.
Post-Independence
The partition of India bought about a social unrest throughout India in 1947. Riot and chaos ruled. The most adversely impacted provinces were the Punjab and West Bengal. So did the economies of both these provinces. As a result, the banking activities had remained paralyzed for months. Till then the banking sector was wide open and there were almost no regulation. Most of the promoters were private players. With Independence, things started changing. Rather the independence marked the end of a regime of the Laissez-faire for the Indian banking. The new government initiated a process of playing an active role in the economy of the nation. The Industrial Policy Resolution adopted by the government in 1948 was the first step towards it. The resolution opted for a mixed economy. This resulted into greater control and involvement of the state in different segments of the economy, more so, in the sensitive sectors including banking and finance. The important banking regulatory steps were as follows: In 1948, India's central banking authority the Reserve Bank of India got nationalized, and it became an institution owned by the Government of India. With the enactment of the Banking Regulation Act in 1949, the Reserve Bank of India (RBI) got empowered "to regulate, control, and inspect the banks in India." The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a license from the RBI, and no two banks could have common directors.
ST. ANDREWS COLLEGE Page 2
Interestingly, despite these provisions, control and regulations, almost all banks in India except the State Bank of India, continued to be owned and operated by private persons. However, the situation changed dramatically with the nationalization of major banks in India on 19th July, 1969.
Nationalisation
From Independence, it took some years for the banking sector to mature. By 1960s, the Indian banking industry did occupy an important position to facilitate the development of the Indian economy. Moreover, it did employ a quantum volume which could affect national economy. It resulted in a debate about the possibility to nationalize the banking industry. At that point, during the annual conference of the All India Congress Meeting, in a paper entitled "Stray thoughts on Bank Nationalisation", Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI favouring nationalisation. The paper was received with positive enthusiasm. Thereafter, in a swift and sudden move, the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. The decision was even termed as a "masterstroke of political sagacity" by non-other than a leader of the stature of Jay Praksh Narayan. Then, within the next fortnight of issuing the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill. The bill finally received the presidential approval on 9th August, 1969. In 1980, there came the second phase of nationalisation of 6 more commercial banks. The reason forwarded for this was to have more control of credit delivery by the government. By the time, GOI effectively got hold of 91% control of the total banking business of India. Till 1990s, all nationalised banks grew at a pace of around 4%, similar to the average growth rate of the Indian economy.
Post-liberalisation
In the early 1990s, with the Narsimha Rao government embarking on a policy of liberalisation the situation started changing. Licenses were issued to a small
number of private banks, such as Global Trust Bank (the first of such new generation banks to be setup)which later amalgamated with Oriental Bank of Commerce, UTI Bank(now re-namedas Axis Bank), ICICI Bank and HDFC Bank. These banks also came to be known as New Generation tech-savvy banks because of their improved service condition and their extensive use of IT in the operations. This move instigated competition, resulting increased efficiency and performance and did a lot of good to the banking sector. The rapid growth in the economy of India, again as a result of liberalisation, also did help transform the sector to this new look. The new situation shifted many goal posts. Till then, the widely used method of 4-6-4 (Borrow at4%; Lend at 6%; Go home at 4) of functioning by the banks become redundant. Technology, competition, change in customer behaviour, macro-economic conditions, government policies, resultant of all together ushered a new modern, efficient and innovating banking environment in India. People started receiving more from the banks and also constantly started demanding more. Retail banking boom can be attributed to this phenomenon. With the second phase of economic reforms, the next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%. Its notable that FDI permissible limit, at present, has gone up to49% with some restrictions.
Current situation
Today, the banking sector in India is fairly mature in terms of supply, product range and reach. As far as private sector and foreign banks are concerned, the reach in rural Indias till remains a challenge. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate. Till now, there is hardly any deviation seen from this stated goal which is again very encouraging.
With passing time, Indian economy is further expected to grow and be strong for quite some time-especially in its services sector. The demand for banking services, especially retail banking, mortgages and investment services are expected to grow stronger. Therefore, it is not hard to forecast few M&As, takeovers, and asset sales in the sector. Consolidation is going to be another order of the day. The significant change in the policy and attitude that is currently being seen is encouraging for the banking sector growth. In March 2006, the Reserve Bank of India allowed Warburg Pincus, a private foreign investor, to increase its stake in Kotak Mahindra Bank to 10%. Notably, this is the first time that a foreign individual investor has been allowed to hold more than 5% in a private sector bank since 2000. Earlier, The RBI in 2005 announced that any stake exceeding 5% by foreign individual investors in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and31 foreign banks. They have a combined network of over 53,000 branches and 17,000ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. Despite the current global slowdown, despite the fear of US economic recession, despite the volatility of Indian stock markets, every informed observer is more or less optimistic about the 8% to 10% growth per annum for the Indian economy till the next few years. Therefore, it can safely be said that the banking industry in India will only surge ahead in coming years. We can also expect to see many other sea changes in terms of their operations, funding and structures. As they say, this is just the beginning!
ST. ANDREWS COLLEGE
Page 5
OBJECTIVES
The main objectives of the project are as follows:
PRIMARY OBJECTIVES:
To study the concept of Foreign Exchange Business. To evaluate the foreign exchange services offered by BANK OF BARODA.
SECONDARY OBJECTIVES:
To be acquainted with the industry coverage of BANK OF BARODA and to learn about the banks international and treasury operations. To learn about the progress of the bank in foreign exchange business, its history and to know the various other services provided by the bank. Finally to draw the various conclusions and recommendations on the basis of the study on specifically taking into consideration the forex services and strategies of the bank.
RESEARCH METHODOLOGY
The data for the study is collected from two main sources: 1) Primary source 2) Secondary source
PRIMARY SOURCE
The primary data would be collected through interaction with the official in the bank.
SECONDARY SOURCE
The secondary data is collected through the following sources: Website of the bank Brochures Banking books and magazines Economic times and other news articles
INTRODUCTION TO FOREIGN EXCHANGE MARKET (FOREX)
The foreign exchange market (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies. The foreign exchange market assists international trade and investment by enabling currency conversion. For example, it permits a business in the United to import goods from the European Union member states especially Eurozone members and pay Euros, even though its income is in United. It also supports direct speculation in the value of currencies, and the carry trade, speculation based on the interest rate differential between two currencies. In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying some quantity of another currency. The modern foreign exchange market began forming during the 1970s after three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states after World War II), when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton. The foreign exchange market is unique because of the following characteristics:
ST. ANDREWS COLLEGE
Page 7
Its huge trading volume representing the largest asset class in the world leading to high liquidity; Its geographical dispersion; Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday; The variety of factors that affect exchange rates; The low margins of relative profit compared with other markets of fixed income; and The use of leverage to enhance profit and loss margins and with respect to account size. As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements, as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion. The $3.98 trillion break-down is as follows: $1.490 trillion in spot transactions $475 billion in outright forwards $1.765 trillion in foreign exchange swaps $43 billion currency swaps $207 billion in options and other products
ST. ANDREWS COLLEGE
Page 8
INTRODUCTION TO BANK OF BARODA (BOB)
Bank of Baroda (BoB) (BSE: 532134) is the highest profit-making public sector undertaking bank in India and the second largest PSU bank in terms of number of total business in India. It is the country's first largest public sector lender in terms of annual profit. BoB is ranked 715 on Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, or Rs. 3,583 billion, a network of 4007 branches and offices, and over 2000 ATMs. It plans to open 400 new branches in the coming year. It offers a wide range of banking products and financial services to corporate and retail customers through its delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, credit cards and asset management. Its total global business was Rs. 6,722.48 billion as of 31 March 2012. Its headquarters is in Baroda and corporate headquarter is in Bandra Kurla Complex Mumbai. The Maharajah of Baroda, Sir Sayajirao Gaekwad III, Peshwa of the Maratha Empire, founded the bank on 20 July 1908 in the princely state ofBaroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by the government of India.
INTERNATIONAL PRESENCE
In its international expansion, the Bank of Baroda followed the Indian diaspora, especially that of Gujaratis. The Bank has 93 branches/offices in 24 countries including 55 branches/offices of the bank, 36 branches of its 8 subsidiaries and 2 representative offices in Thailand and Australia. The Bank of Baroda has a joint venture in Zambia with 16 branches.
ST. ANDREWS COLLEGE
Page 9
Among the Bank of Barodas overseas branches are ones in the worlds major financial centers, as well as a number in other countries. The bank is engaged in retail banking via the branches of subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans to upgrade its representative office in Australia to a branch and set up a joint venture commercial bank in Malaysia. It has a large presence in Mauritius with about nine branches spread out in the country. The Bank of Baroda has received permission or in-principle approval from host country regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing operations in the United Kingdom, the United Arab Emirates, and Botswana. The tagline of Bank of Baroda is "India's International Bank".
FORAY INTO EDUCATION

The Bank of Baroda has forayed into education with an unique partnership with Manipal University. The duo has started Baroda Manipal School of Banking which offers a Postgraduate Diploma in Banking & Finance (PGDBF) from Manipal University. End of the course, students will be observed as Management Trainees or Specialist officers in Bank of Baroda. The eligibility for this course is determined by a written test followed by group discussion and personal interview.
SUBSIDIARIES
BOB Capital Markets Ltd. (BOBCAPS) is a SEBI-registered investment banking company based in Mumbai, Maharashtra. It is a wholly owned subsidiary of Bank of Baroda. Its financial services portfolio includes Initial Public Offerings, private placement of debts, corporate restructuring, business valuation, mergers and acquisition, project appraisal, loan syndication, institutional equity research and brokerage.
BANK OF BARODA FINANCIALS 2012

Sales Rs. 24,695 crores Profits Rs. 5,006 crores Assets Rs. 3,58,397 crores
ST. ANDREWS COLLEGE
Page 11
INTRODUCTION TO FOREIGN EXCHANGE IN BANK OF BARODA (FOREX IN BOB)
Bank of Baroda, one of the major public sector banks in India having a strong global presence with a wide network of 86 overseas offices, including those of subsidiaries, spread over 25 countries, is considered as a market leader in foreign exchange operations in India. At present the Bank is having branches / offices in countries like USA, UK, Belgium, South Africa, Hong Kong, UAE, Oman, Fiji Islands, Mauritius, Seychelles, Bahamas, Guyana, Kenya, Uganda and Zambia The Bank has completed fifty years of operations in overseas territories and is poised to expand its reach to countries like Tanzania and China, apart from consolidating its overseas operations in those countries where the bank has already made its presence felt. The modern state-of-the-art dealing room at its Specialised Integrated Treasury Branch (SITB) at Mumbai provides the necessary wherewithal to its 130 designated branches across the length and breadth of the country authorized to handle foreign exchange business of its clientele. The bank has retained its primacy as a leading market maker both in spot and forward markets, along with foreign exchange swap markets. The forex dealing desk at the SITB is provided with all modern communication facilities and is in the process of linking all its authorized branches via Reuters Automated Dealing System, to provide on-line quotes for foreign exchange transactions.
Through its large network of authorized branches, the bank caters to the foreign exchange needs of its clientele engaged in export and import trade and the SITB provides rates for conversion of all major world currencies like U S Dollar, Sterling Pounds, Euro, Swiss Francs, Japanese Yen and other exotic currencies. The services to the customers of the Bank include hedging of foreign currency risks by providing forward covers and various derivatives product.
ST. ANDREWS COLLEGE
Page 13
FOREX SERVICES
Bank offers Foreign Exchange Services for purchase / sale in all tradable currencies Purchase of foreign currencies from Exporters Sale of foreign currencies to Importers Purchase of foreign currencies of Inward Remittances Sale of foreign currencies for Outward Remittances Forward purchase of future in streams of foreign currencies Forward sale of future outflow of foreign currencies. Cross currency swaps.
Banker's fair practices code

Foreign-exchange services offered through authorized offices We will provide you details of the service, exchange rates and charges that apply to foreign exchange transactions, which you are about to make. If this is not possible, we will tell you how these will be worked out. If you want to transfer money abroad, we will tell you how to do this and will give you : a description of the services and how to use them details of when the money you have sent abroad should get there and the reasons for possible delays
the exchange rate applied when converting to the foreign currency; and details of any commission or charges which you will have to pay. If money is transferred to your bank account from abroad, we will tell you the original amount received and charges, if any. If the sender has paid all charges, we will not deduct charges when we pay the money into your account. We will guide you about regulatory requirements or conditions relating to foreign exchange services offered by us as and when required by you.
Banking Codes and Standards Board of India

Foreign Exchange Services a) When you buy or sell foreign exchange, we will give you information on the services, details of the exchange rate and other charges which apply to foreign exchange transactions. If this is not possible, we will tell you how these will be worked out. b) If you want to transfer money abroad, we will tell you how to do this and will give you: a description of the services and how to use them details of when the money you have sent abroad should get there and the reasons for delays, if any the exchange rate applied when converting to the foreign currency (if this is not possible at the time of the transaction, we will let you know later what the rate is) details of any commission or charges, which you will have to pay and a warning that the person receiving the money may also, have to pay the foreign banks charges. c) We will tell you if the information provided by you for making a payment abroad is adequate or not. In case of any discrepancies or incomplete documentation, we will advise you immediately and assist you to rectify/complete the same. d) If money is transferred to your bank account from abroad, we will tell you the original amount received and charges if any levied. If the sender has agreed to
pay all charges, we will not take any charges when we pay the money into your account. e) We will guide you about regulatory requirements or conditions relating to foreign exchange services offered by us as and when requested by you. f) In case of delay beyond the day when the amount is due for credit, you will be compensated (a) for any loss on account of interest for due period beyond the due date and (b) also for adverse movement of forex rate as per the Compensation Policy of the bank. g) All certificates required to be issued under regulatory/statutory instructions will be issued free of charge.
Treasury Operations
In the changing economic environment of the country in particular and the globe in general, Bank of Baroda was the premier public sector bank in India to set up a Specialized Integrated Treasury Branch (SITB) in Mumbai and the integrated approach initiated by the Bank in its treasury operations is now being emulated by other peer banks. Bank of Baroda has consciously adopted a focused approach towards improving efficiency and profitability by successfully integrating the operations of different financial markets, viz. Domestic Money, Investments, Foreign Exchange and Derivatives and has made its mark as an important player in the market-place. The SITB at Mumbai, equipped with the State-of-the-art technology, with modern communication facilities, handles all types of financial transactions, both for managing its resources and deployments and effective compliance of regulatory requirements. In earlier part of this century, with changing Global economic environment in general and Indian environment in particular, Bank of Baroda has set-up a
Specialized Integrated Treasury Branch (SITB) in Mumbai. This integrated approach, initiated by Bank, is now being emulated by other peer banks. In UK, Bank of Baroda has adopted a focused approach towards improving efficiency and profitability by successful integration of operations of different financial markets, viz. Domestic Money, Investments, Foreign Exchange and Derivatives and has made its mark as an important player in the marketplace. Banks treasury operations in London is equipped with state-of-the-art technology and handles almost all types of financial transactions, both for effective management of resources and its efficient deployment, besides timely compliance of regulatory requirements. Treasury provides various exchange and interest rates to branches based on live market conditions and thereby facilitate Customers with an up-to-date and best financial options.
ST. ANDREWS COLLEGE
Page 17
FOREX SERVICE CHARGES
The Bank provides various services to customers but for certain services only charges are levied. The charges are reviewed / revised from time to time. Service charges are levied for some services such as collection of cheques / instruments, remittance of funds, processing of loan proposals, issue of guarantees, safe custody, issue of duplicate instruments / statements, ledger folio charges etc. Details of service charges will be made available on request. Exclusive of Service Tax 1 EXPORTS 1.1(a) For each foreign currency & rupee export bill
purchased/discounted/negotiated. Rs.750/- (for bill amount of USD 25000/- and above ). Rs.500/- (for bill amount below USD 25000/-) 1.1 (b) Where the bank sends an export bill for negotiation to another Authorised Dealer in India (due to reasons such as L/C being restricted to the latter or the L/C has been confirmed by latter etc.) . Rs.500/- per bill
1.1 (C) Where reimbursement under a letter of credit is claimed by the bank with another Authorised Dealer in India. Rs.500/- (for each claim) 1.2 Commission on Joining in customers guarantees and for giving guarantees/ indemnities on behalf of customers to other banks in India in respect of discrepancies, etc. in documents negotiated under letter of credit 0.10% with minimum of Rs.500 for each transaction. 1.3 Export bills for collection and exports under consignment arrangements. As per 1.1 (a) Rs.750/- (for bill amount of USD 25000/- and above ). Rs. 500/- (for bill amount below USD 25000/-)
at the rate of
1.4 If the entire sets of export documents have been sent by the exporter directly to the Overseas buyer after complying with Exchange Control formalities. a. Where full advance remittance has been received through our bank - Rs.200/per Bill. b. Where full advance remittance received through other bank - Rs.500/- Per Bill. c. If advance remittance is not received and bill amount is to be collected as per 1.1 (a) 1.5 Export Letters of Credit: Letters of Credit include letters of credit, standby letters of credit, letters of authority, orders to negotiate, orders for payment and all types of documents of similar nature. 1.5 (a) Advising Commission & Amendments, Advising through other Bank. Rs. 800/- for each LC and Rs..500/- for each amendment. 1.5 (b) Charges for adding confirmation to a Letter of Credit. Unified (Commitment + Usance) Sight LCs and upto 30 days usance: LC Amount Upto 1 crore >1 crore upto 5 crore >5 crore 0.25 0.18 0.10 % charges
LCs beyond 30 days usance: LC Amount Upto 1 crore >1 crore upto 5 crore >5 crore 0.18 0.09 0.05
Page 19
% per month
ST. ANDREWS COLLEGE
Minimum Rs.1000/1.5 (c) Commission in lieu of exchange 1.6 Transfer of Letters of Credit, Amendments. Rs.500/- for each transfer and subsequent amendment 1.7 Certificates: Charges for issue of certificates/attestation authorisation in respect of export transactions. Rs.100/- per set of BRC. Rs.100/- Other certificates 1.8 In case of each overdue export bill, sent on collection where the proceeds are not received in NOSTRO Account on or before the due date and in case of each overdue export bills purchased/discounted /negotiated / negotiated and subsequently treated as collection item after crystallisation. Rs.500/- per quarter or part thereof to be recovered at the time of realisation of the bill or when reported in XOS statement whichever is earlier. 1.9 Charges recoverable from the exporters where advance payment towards exports is received. Rs.250 per remittance. Charges applicable to Export Bills for Collection under Serial No.1.3 should be recovered from the customer at the time of submission of export bills. 2.1 (a) Charges for establishing Letter of Credit (Commitment + Usance) Sight LCs and upto 30 days usance: LC Amount Upto 1 crore >1 crore upto 5 crore >5 crore 0.25 0.18 0.10 % Unified charges
LCs beyond 30 days usance: LC Amount Upto 1 crore % per month 0.18
Page 20
ST. ANDREWS COLLEGE
>1 crore upto 5 crore >5 crore Minimum Rs.1000/No concession
0.09 0.05
2.1 (b) In case of a Letter of Credit established against 100% cash deposit as Security. 25% of the charges as mentioned in 2.1(a) above 2.1 (c) Amendment Extension of the validity. Rs.500/- per amendment plus unified charges applicable as per 2.1 (a) for the extended period. 2.1 (d) Amendment Enhancement of the value Rs. 500 per amendment. In
case of enhancement of the value of a Letter of Credit, charges as per point No.2.1(a) for establishing a Letter of Credit shall be recovered for the additional amount, on the outstanding liability under the LC. Note: For the purpose of levying charges under this Rule, value of each enhancement will ordinarily be considered separately without adding it to the original value of the Letter of Credit. 2.1 (e) Amendment altering tenor of the Bill of Exchange. Rs. 500 amendment charges. In the case of amendment altering the tenor of the Bill of Exchange, additional unified charges as per 2.1 (a) shall be collected on the outstanding liability under the LC. 2.1 (f) Commission for any amendment to a LC, other than extension of its Rs. 500/- per amendment.
validity or enhancement of its value.
2.1 (g) Revival of expired LCs Any revival or reinstatement of an expired LC shall be at the option of the bank but within 3 months from the date of expiry and shall be subject to recovery of unified charges as per 2.1(a) from the date of expiry upto the validity period of the revived Letter of Credit. 2.2 STANDBY LETTER OF CREDIT LC Amount % per month Upto 1 crore 0.08
ST. ANDREWS COLLEGE
Page 21
>1 crore
0.05
Minimum Rs.1000/In case the standby letter of credit is backed by 100% margin by way of cash or our own deposits, then, 25% of the above rates. 2.3 (a) REVOLVING LETTER OF CREDIT On a revolving Letter of Credit established as per provisions of Trade & Exchange Control Regulations and for restoration of the credit to the extent of drawings honoured. As mentioned in 2.1 (a) above. 2.3 (b) REINSTATEMENT CHARGES upon the reinstatement under a Revolving Letter of Credit. As mentioned in 2.1 (a) above. 2.4 DEFERRED IMPORTS Commission on letter of Credit covering import of goods on deferred payment terms involving payments beyond a period of six months from the date of shipment over a period of time as defined in Exchange Control. Calculated on the amount of liability under such credit at the beginning of every quarter LC Amount Upto 1 crore >1 crore upto 5 crore >5 crore 0.25 0.18 0.10 % per quarter
2.4 (b) If the validity period of a Letter of Credit covering import on deferred payment terms is extended. Flat amendment commission of Rs.500/-,
However, for any amendment extending the validity of the letter of Credit beyond 3 month period, commission at the applicable rate shall be recovered. 2.4 (c)Amendment Enhancement: When the amount of an import letter of credit covering import on deferred payment terms is enhanced, commission at the applicable rate shall be recovered on the amount so enhanced.
ST. ANDREWS COLLEGE
Page 22
Note: For purposes of levying charges under this Rule value of each enhancement will ordinarily be considered separately without adding it to the outstanding liability of the letter of credit. However, branches may, at their discretion add the value of enhancement to outstanding liability of the letter of credit for purpose of levying charges depending upon the circumstances of each case. 2.4 (d) Letter of Comfort issued for availing Buyers Credit Buyers availed with BOB branches 1.00% p.a. Buyers credit availed with other banks 1.50% p.a. Credit
2.5 CRYSTALLISATION OF IMPORT BILLS UNDER LETTERS OF CREDIT 2.5 (a) At the time of retirement or crystallisation (whichever is earlier) of import bills. @ 0.15% of each import bill subject to Minimum Rs.1000/-
For individual transactions: Upto Rs. 1 crore >1 crore upto 3 crore >3 crore upto 5 crore > 5 crore 0.15% 0.08% 0.04% 0.02%
2.5 (b) Commission on foreign currency import bills received under Letters of Credit on which no exchange benefit accrues to the Opening Bank. 0.1% (minimum Rs.500/-) 2.5 (c) Discrepancy charges in case of non-conforming documents under letters of credit. USD 50 or its equivalent rupee 2.6 COMMISSION ON BILLS (NOT UNDER LETTER OF CREDIT) 2.6 (a) On each bill drawn in foreign currency, on which the bank earns exchange benefit. @ 0.15% with a minimum of Rs.500/- and Maximum of Rs.25,000/-
ST. ANDREWS COLLEGE
Page 23
2.6 (b) On each bill drawn in Rupees and on each bill drawn in foreign currency on which the bank does not earn exchange benefit. of Rs.500 and Maximum of Rs.50,000/2.7 IMPORT DOCUMENTS COVERING PROJECT IMPORTS with a minimum of Rs.500. 2.8 IMPORT DOCUMENTS RECEIVED DIRECTLY BY IMPORTERS 50% of 2.6(a) 2.9 Countersigning/Co-acceptance/ Availisations of import bills month for the tenor of bills subject to minimum of 0.25% 2.10 Custody charges for overdue bills Rs.250 per quarter or part thereof for each bill, if the bill is not paid within 10days from the due date/date of presentation. 2.11 Booking of forward sale contract in respect of import bills drawn under letter of credit opened by another bank. 0.1% commission in lieu of exchange in addition to swap cost and interest from the date of negotiation till the date of credit of proceeds in the banks nostro a/c (minimum Rs.500/-) 2.12 Recovery of commission in lieu of exchange on import bills payment of which are settled out of foreign currency loans arranged abroad, foreign currency accounts and EEFC accounts. Commission @ 0.1% in lieu of exchange in respect of letters of credit opened and which are settled out of foreign currency loans arranged abroad, foreign currency accounts and EEFC accounts. (Minimum Rs.500/-) In case of bills not covered by L/Cs 0.1% commission in lieu of exchange shall be collected in addition to collection charges. 2.13 IMPORT BILLS FOR COLLECTION Usually in respect of foreign currency collection bills the bank shall be entitled to exchange and commission. If for any reason the bank is required to forward the documents to another bank which will be required to remit the proceeds to the remitting bank abroad. Rs. 500 per bill as handling charges. 0.085% per @ 0.20% @ 0.30% with a minimum
ST. ANDREWS COLLEGE
Page 24
2.14 Back to back Letter of Credit.
Back-to-back letters of credit will be
treated as separate transactions and commission as per Rule 2.1 (a) or 2.1 (b) as applicable shall be charged to the customer. 2.15 If foreign currency remittances are received in advance from the overseas buyer, and the specific request of merchanting trade customer hold the foreign currency funds in their Nostro A/C without converting the amount into Indian Rupee till the date of payment to the overseas supplier & the bank would not apply buying and selling rate of exchange. Commission at 0.1% shall be
charged on each transaction and the Bank shall not pay interest on such advance remittances or not grant Rupee advances against foreign currency Funds thus received. (minimum Rs.1000/-) 3.A INWARD REMITTANCES 3.a Application of exchange and interest rates. For the purpose of encashment of TTs/Payment of foreign currency Demand Drafts, Mail Transfers etc. the application of exchange and interest rates shall be as under: 3.a (I) Purchase of customers personal cheques, demand drafts, international Applicable Buying rate
money orders, bankers pay orders payable abroad.
plus interest for a transit period of 15 days at domestic commercial rate of interest (Base Rate + 7%) (in case of advance remittance against export, rate of interest applicable to Packing Credit is to be charged for a period of 15 days) 3.a (ii) Commission in respect of each clean payment effected under instructions from a foreign correspondent (inward remittance) No charges, whenever proceeds are to be credited to deposit account with us. Others Rs.100/- (service tax applicable to be recovered) 3.a (iii) Where the inward remittance has to be executed in foreign currency by issuing a demand draft/mail transfer/payment order/telegraphic transfer commission shall be recovered from beneficiary/beneficiarys bank as the case may be. 0.1% min. Rs.100/- and maximum Rs.5000/-
ST. ANDREWS COLLEGE
Page 25
3.b Clean instrument for Collection: Commission to be recovered on clean instruments sent for collection abroad. 0.1% Rs.5000/3.c Foreign Currency instruments sent on collection within India In respect of min. Rs.50/and maximum
foreign currency instruments favouring resident beneficiaries sent for collection within India, charges as applicable for inland transactions may be recovered. 3.B OUTWARD REMITTANCES. (I) On all outward remittances. An amount of Rs.100 upto Rs.10,000/- and Rs.200 above Rs.10,000/- (In case of advance remittance against imports additional charges equivalent to 25% of 2.6(a) or 2.6(b) are recoverable). (II) Issue of Foreign Currency Travellers Cheques Commission rupee equivalent payable by the customer can be waived as under, Branch manager (MM III) 50% (SM IV) beyond 50%) (III) Where at the request of the beneficiary, foreign currency travellers cheques are issued by the Authorised Dealers against foreign currency remittances received from abroad, the commission payable. 0.25% @ 1% on
(IV) Payment of foreign currency draft by the drawee bank by issuing their own draft in the same currency in favour of the beneficiary bank with whom the relative foreign currency amount is to be deposited in a FCNR Account. Rs.250 per draft (V) EEFC ACCOUNTS Where the bank effects outward remittance to the debit of EEFC account of the customer commission payable. 0.10% with a minimum of USD 10 and maximum of USD 50 or its rupee equivalent. 4 GUARANTEE 4.1 The scale of charges shall be collected by banks on the specified period of liability of the guarantees. The specified period of liability shall mean the actual
validity period of the guarantee plus the additional period during which claims can be made on the bank under the guarantee. 4.2 In case of guarantee (other than those issued for project exports) issued against 100% counter-guarantees of the Government of India and in case of guarantees issued against 100% cash deposit, or where guarantees are issued on behalf of Central and State Governments and
Corporations/Institutions/Companies wholly owned by them or backed up by counter indemnity of reputed international bank. as mentioned in 4.3 & 4.4 4.3 Types of Guarantees and Charges 4.3 (I) Guarantee in favour of shipping companies/agencies for clearance of Min. 25% of normal rates
goods pending production of bill of lading.
Relating to imports under L/Cs opened by the Bank. Guarantee Relating to imports not covered under L/C of issue of guarantee with min. of Rs.500.
Rs.500
per
0.25% for three months at the time
If the guarantee validity is beyond 3 months, an addl. commission of 0.10% per month or part thereof till the guarantee remains valid 4.4 (I) Export performance guarantees for Project Exports which include:
Bid-bonds Bonds for earnest money Guarantees for advance payment made by foreign buyers to Indian exporters/contractors. In case of guarantees covered by ECGC counter-guarantees, banks shall collect commission as well as ECGC premium at the applicable rates and remit the collected premium to the ECGC. The present rates are as under:
ECGC Cover ECGC Premium
75% 0.80%
90% 0.95%
Page 27
ST. ANDREWS COLLEGE
Bank Comm. Total cost to exporters
0.45% 1.25%
0.35% 1.30%
In case of guarantees issued against 100% counter-guarantees of the Govt. of India/ cash deposit, charges are as per 4.2. In case of guarantees which are not covered by cash deposits or ECGC/ Govt. of India counter guarantees, commission shall be charged at 1%p.a. However, request for waiver of ECGC cover is to be referred with justification to Intl. Divn. for consideration on a case to case basis.
Commission in respect of Bid Bonds: Commission for issuing bid bonds for supplies to projects carried out abroad shall be recovered to the extent of 25% thereof for the full period of validity of the bonds at the time of issue. If the bid materialises the balance 75% of the commission shall be recovered. However, if the bid gets frustrated, there will not be refund of that part of the commission previously collected. 4.4 (II) Export Performance guarantees, Bid-bonds etc. (other than for Project Exports) and Export Performance guarantees covering export obligations in terms of import trade control regulations and export performance guarantees/bid bonds connected with deemed exports. 0.085% per month for the specified period of liability. Where the guarantee period is less than 3 months, commission recoverable will be 0.25% of the guaranteed amount. In case of early redemption of the guarantees beyond a period of 3 months from the date of issue, 50% of the commission for the unexpired period i.e. from the date of redemption to the expiry date shall be refunded. Commission for issuing bid bonds for supplies connected with deemed exports/direct exports other than project exports shall be recovered to the extent of 25% thereof for the full period of validity of the bonds at the time of issue. If the bid materialises, the balance 75% of the commission shall be recovered. However if gets frustrated, there will not be refund of that part of the commission previously collected.
ST. ANDREWS COLLEGE
Page 28
4.4 (III) Deferred Payment Guarantees covering imports of goods into India/repayment of foreign currency loans. 0.50% per quarter or part thereof
for the specified period of liability calculated on the amount of liability under such guarantees at the beginning of every quarter. If the commission chargeable works out upto Rs. 10,00,000/-, entire amount to be recovered upfront. If the commission chargeable exceeds Rs. 10,00,000/-, the commission amount exceeding Rs.10,00,000/- plus ST may be recovered in suitable installments to be stipulated on merits of each case duly seeking Zonal Authorities approval, subject to following: 1. Where the entire Guarantee Commission is collected upfront, the rate of commission and exchange rate (TT Selling) prevailing as on the date of issuance of the guarantee shall be applied. No further adjustment arising out of future revision if any in the Guarantee commission shall be made. 2. Where the Guarantee commission is recovered on installment basis, the rate of commission and exchange rate (TT Selling) prevailing as on the date of recovery of each installment shall be applied. In the event of default in payment of installments, interest shall be recovered at domestic commercial rate from the date of default to the date of actual payment. 4.4 (IV) All other guarantees 0.15% per month for the specified period of
liability. Where the guarantee period is less than 2 months, commission recoverable shall be 0.25%. In case of early redemption of the guarantee after a period of 2 months. 50% of the commission for unexpired period may be refunded at the discretion of the bank. 4.4 (V) The minimum charge for any guarantee shall be Rs.500/-
5. Foreign Exchange Forward Contract Charges Commission on each sale and purchase contract booked. 5.1 Cancellation/addition Rs.400/- per sale or purchase contract. Rs.400/- per sale or purchase contract.
6 SWIFT CHARGES Rs.500/- per message

INTERNATIONAL OPERATIONS
Wide global network

Bank of Baroda started its overseas journey by opening its first branch way back in 1953 in Mombassa, Kenya. Since then the Bank has come a long way in expanding its international network to serve NRls/PIOs, Indian Corporates around the world and to meet the banking requirements of the local population in the country of operation. The Bank has transformed intoIndia's International Bank. The Bank has significant international presence with a network of 95 branches / offices in 24 countries including 56 branches/offices of the Bank, 37 branches of its 8 Subsidiaries and 2 Representative Offices in Thailand and Australia. The Bank also has Joint Venture in Zambia with 16 branches and Joint Venture in Malaysia having -1- branch at Kuala Lumpur. The Bank has presence in world's major financial centers i.e. New York, London, Brussels, Dubai, Hong Kong and Singapore. Bank of Baroda is pursuing an ambitious overseas expansion plan and is in the process of identifying/opening more overseas centers for increasing its global presence to serve its 43 million global customers in still better way. Bank is further expanding the branch network in UK, UAE, Oman, Uganda, Kenya Botswana, and Tanzania etc. It has further plans to upgrade its Representative Offices in Australia to a branch
1) FOREIGN CURRENCY CREDITS

The Foreign currency denominated credit facilities are granted to the Indian corporations in India as well as at the Money Centre Branches abroad. Corporations interested in raising foreign currency funds both in India and abroad may contact in India the branches they are dealing with, the Position Maintaining Offices (PMO's/ Authorised Foreign Exchange Branches), Corporate Banking Branches, Industrial Finance branches or any of the major branch in the city. They may also contact the Bank's Regional Offices/ Zonal Offices for the required information/ guidelines. Foreign Currency Loans In India (FCNR 'B' Loans) The foreign currency denominated loans in India are granted against the foreign currency funds a bank has on account of FCNR(B) Deposit. These loans are commonly known as FCNR(B) Loans. Bank of Baroda with a wide global presence has a large base of NRI customers/ depositors. This enables, Bank of Baroda pool in from a arge resource base of FCNR(B) deposits and is in a position to offer the Foreign Currency Loans in India under FCNR(B) Plan at very competitive rates. Foreign Currency Credit outside India With a presence at major financial centers of the world, Bank of Baroda has strong foreign currency resources at Money Centre Branches. This enables Bank of Baroda to arrange for and grant Foreign Currency Credits to Indian as well as multinational corporations at competitive rates. The foreign currency denominated Loans are granted at Money Centre Branches across the globe. The Foreign Currency Loans granted to Indian Corporate are granted as per External Commercial Borrowing (ECB) Policy of Govt. of India.
2) EXTERNAL COMMERCIAL BORROWINGS

The foreign currency borrowings raised by the Indian corporates from confirmed banking sources outside India are called "External Commercial Borrowings" (ECBs). These Foreign Currency borrowings can be raised within ECB Policy guidelines of Govt. of India/ Reserve Bank of India applicable from time to time.
ECBs at Bank of Baroda Bank of Baroda is very active and is a leading player in granting and arranging various forms of foreign currency facilities through ECB route for the Indian Corporates. BOB focuses on all type of foreign currency credit requirements of Indian corporates in arranging the Foreign Currency Loans. Bank of Baroda, Indias International Bank ,having a strong global presence with 93 branches / offices in 24 countries including the major global Financial Centers ( Brussels, Dubai, Hong Kong, London, New York and Singapore etc.) is very evenly placed and have an edge over all others in its capability to arrange/ grant the funds from the international market. Bank of Baroda has a few decades of experience in arranging foreign currency loans. This long experience and wide presence across the globe brings leverage to BOB to understand the ECB market better thus offer best terms to the clientele. International Merchant Banking Cell (IMBC) With rising activities by Indian corporates in the global as well as back home in India , the quest for cheaper and quicker global fund is growing at a substantial pace. Mid-sized companies have also joined the bandwagon. The idea behind is to scale up operations, become globally competitive and getting access to foreign markets. They will also require the international Corporate/ Merchant/ Investment Banking Services to arrange the funds as well for other purposes. International Merchant Banking Cell (IMBC) has been set up at BCC, Mumbai to pay focused attention to the international merchant banking needs of Indian corporates with special emphasis on External Commercial Borrowing . IMBC has been offering Corporate/ Merchant/ Investment Banking services with a range of products/ activities as enumerated below: Arranging/ granting Foreign Currency Loans/ External Commercial Borrowing.
ST. ANDREWS COLLEGE
Page 32
Providing whole range of transactional banking services to Indian corporates for their offices, Joint Ventures, Subsidiaries abroad at places where we have branches. Offering Foreign Exchange/ Derivative products. Providing Buyers Credit/ Suppliers Credit. Arranging / underwriting/ participating in Syndicated Loan Raising funds for corporates through bilateral loans/ club deals Arranging funds from International Markets by way of Bonds, FRNs, FCCBs etc. Arranging loans from Export Credit Agencies of other countries Advisory services on overseas investments Innovative tailor-made solutions to the specific requirements of corporates. Structured financing for procuring specific assets such as rigs, ships, aircrafts etc. Financing and structuring cross border acquisition debt Global Syndication Centre (GSC) at London (UK) Regional Syndication Centre (RSC) at Dubai (UAE)
Bank has set up Global Syndication Centre (GSC) at London (UK) and Regional Syndication Centre (RSC) at Dubai (UAE) to exclusively arrange tailor made solutions for foreign currency / services at a competitive price for Indian / non Indian corporates . It has a dedicated, professionally expert and specialist team both in India and abroad with international exposure in the area of arranging Loan Syndication / other services. Intending corporate / Institutional clients can contact any of the following offices
Corporate Financial Service Branches (CFS) (click branch locator) Corporate Banking Branches (CBBs) (click branch locator ) International Business Branches (IBBs) (click branch locator ) Nearest selected branches (click branch locator ) Main branch of the city (click branch locator ) OR you may approach directly to the Assistant General Manager The concerned branch will assess/ appraise the financial and other information to be given by the company like any other rupee credit facilities. The corporates need to ascertain that their requirement is as per the ECB guidelines of the RBI/ Govt. of India. Details of ECB policies / guidelines are available on RBI website. Pricing The pricing of the foreign currency loans/ services implies the total cost to the company comprising rate of interest / margin ( it is linked with the risk profile of the intending borrower) arrangement / upfront fee and other fees. The arrangement fee / upfront fee is a onetime cost. The pricing depends on various factors such as the credit rating of the borrower, tenor of the loan, demand/supply position of the foreign currency available, market conditions etc. The prices keep on changing as per the market scenario and are normally valid for a period of -30- days. In addition to the pricing, there are legal/ documentation / out of pocket expenses etc. These are normally in the range of US$ 15,000 or US$ 20,000, but can be higher in some cases. Pricing offered is flexible, can be discussed and negotiated. ECB through Syndicated Loans- Stages in brief: To discuss the terms and conditions of the ECB and finalize the same with BOB.
To give the mandate to BOB to arrange the ECB. Bank will arrange to end to end solutions as required for syndication To obtain required approvals from RBI/ Govt. of India. Execute Loan Agreement and create charge on the securities, if applicable. If applicable, obtain exemption from withholding tax under Section 10(15)(iv)
3) FCNR (B) LOANS

Corporatescan avail loans from Bank of Baroda. The Indian corporates/ firms are allowedto raise the funds through foreign currency loans at select Indian brancheswithin the prevailing policy guidelines of the Bank/ RBI. Key Benefits FCNR (B) loans are beneficial to the corporates on account of following: At times, it may entail lesser interest cost vis--vis Rupee borrowings. The borrower is not required to go to the International market for raising the funds as foreign currency funds are made available in India reducing the cost of raising such funds. Broad purpose of loans Corporates are allowed to obtain foreign currency denominated loans in India under the above scheme for the following purposes: 1. For meeting working capital requirements in Indian Rupees. 2. By way of pre-shipment advances/ post shipment advances to the exporters. 3. Import of raw materials. 4. Import of capital goods. 5. Purchase of indigenous machinery. 6. Repayment of the existing Rupee Term Loan.
ST. ANDREWS COLLEGE
Page 35
7. Repayment of any existing ECB's with the permission from RBI, Govt. of India. The present guidelines for the different purposes of the loans are as under: For meeting working capital requirements in Indian Rupees. The loan can be granted after proper assessment and sanction of working capital requirements/ Maximum Permissible Bank Finance (MPBF). The borrowers should have natural hedge to cover themselves from exchange risk, which they will have to bear. The borrowers who do not have natural hedge are required to take forward cover to avoid the exchange risk. The borrowers with a sound financial strength, higher ratings say A+/A and do not have natural hedge may also be considered. The loan can be disbursed up to 90% of the MPBF limit. Wherever borrowers are covered under the Loan system for delivery of Bank credit, bifurcation of MPBF limit into foreign currency loan, loan component in rupees, cash credit component and bill limit should conform to RBI guidelines. The foreign currency loan amount is to be taken as a part of loan component provided minimum period of the loan is -6- months. Foreign currency loan can be disbursed in -4- currencies viz US$, Sterling, Euro and Japanese Yen. Minimum amount of the loan Loan to exporters by way of Pre Shipment Credit in Foreign Currency (PCFC)/ Post Shipment Credit in Foreign Currency (PSFC) The exporters can avail this facility by way of pre-shipment credit as well as post shipment credit in foreign currency. All other terms applicable to such type of Rupee advances shall also be applicable to foreign currency advances. Import of raw materials. The importers can take benefit of foreign currency loans for import of raw materials in lieu of rupee MPBF sanctioned to them. The rupee equivalent of the
foreign currency loan amount is to be earmarked in the overall sanctioned MPBF limit. This loan can also be repaid in foreign currency. Import of capital goods. The importers of capital goods can avail the foreign currency loan for a period not exceeding -3- years including moratorium period. Normally, the import of capital goods should be arranged on 180 days Usance basis. Purchase of indigenous machinery. The corporates can raise the foreign currency loans for their capital expenditure/ project expansion plans etc for the purchase of indigenous machinery. Repayment of existing Rupee Term Loan The Foreign Currency Loans can be utilised for the repayment of the existing Rupee Term Loan provided the duration of the foreign currency loan does not exceed the portion of the existing rupee loan which has not yet expired or 3 years whichever is less. Repayment of ECB's The repayment of the ECB's requires permission from the Government of India / RBI as per the applicable guidelines. Corporates can raise the FCNR (B) Loans after obtaining requisite permission from RBI/ Govt. of India and completing other formalities. Terms & Conditions Service/processing charges vary according to the purpose of the loan. 1% p.a. if the loans are not availed of within -30- days from the date of sanction. 1% of the Loan amount for theremaining period of the Loan will be deducted on prepayment The rate of interest normally applicable to FCNR Loans is governed by the circulars issued by International Division at Corporate Centre from time to time. At present the indicative rates depends on the credit rating of the party ie. For
"AAA" rated customers it is 500 bps over 3 months USD LIBOR, FOR "AA' rated customers it is 550 bps over three months LIBOR & for "A" rated customers it is 600 bps over USD LIBOR. For the foreign currency denominated Term Loans, the maximum rate of interest is 4% over -6- months LIBOR Documentation & Procedure To avail of FCNR (B) Loan by earmarking the working capital facilities, the borrowers can approach the concerned branch where they are enjoying credit facilities. The branch will arrange for the sanction of the loan from the competent authority of the Bank. For all other purposes, the foreign currency loans can be granted after proper assessment of the requirement of the borrower and the sanction of the same by the Bank. For sanction of these loans, the borrowers required to provide all the information required by the Bank for sanction of credit facilities. After sanction of the facilities, execution of documents as per the procedure of the Bank and compliance of all the terms and conditions by the Bank, the loans are disbursed at one of the Position Maintaining Offices (Link) of the Bank.
4) EXPORT CREDIT (RS)

Rupee export credit (pre-shipment and post-shipment): BOB offers both pre and post shipment credit to the Indian exporters through Rupee Denominated Loans as well as foreign currency loans in India. Exporters having firm export orders or confirmed L/C from a recognized Bank can avail the export credit facilities from BOB provided they satisfy the required credit norms. The details of the credit norms can be obtained from the nearest authorised branch of the Bank. Rupee export credit is available for a maximum period of -360- days from the date of first disbursement. The corporates, if required can book forward contracts in respect of future export credit drawals.
Export bill rediscounting : BOB offers financing of export by way of bill discounting of export bills to provide post shipment finance to the exporters at competitive international rate of interest. The export bills (both Sight and Usance) can be purchased/ discounted provided they comply with the norms of the Bank/ RBI. All exporters are eligible to cover the bills drawn under L/C, non-credit bills under sanctioned limits under the Bill discounting Scheme.
5) IMPORT FINANCE
Bank of Baroda provides various types of funding/ services to the importers for facilitating the imports in the country. The vast network of Bank's overseas branches/ subsidiaries and Correspondent Banks worldwide facilitate prompt & efficient services to the importers. All the facilities are subject to the prevalent rules of the Bank/ RBI guidelines. The various facilities provided are: Collection of import bill. Opening of Import L/Cs (Sight/ DA) Financing of import by way of Foreign Currency Loans Issuing Guarantees etc. on behalf of importers. Collection of import bills: The import bills are collected through the 131 authorised branches at very competitive rates. The Bank has correspondent relationship with reputed International Banks throughout the world and can provide the services to importers who may be importing from any part of the globe. Letter of credit: Bank of Baroda offers L/C facility for the purchase of goods in the international market. Being a well-known international Bank of repute, the L/Cs of the Bank of Baroda are well accepted in the International market.
ST. ANDREWS COLLEGE
Page 39
With the Letter of Credit of Bank of Baroda, importers can build up better trust/ confidence in their suppliers and develop other business relationship at a much faster pace. The L/C facility can be granted to the importers after assessing their requirement/ credit worthiness/ financial strength and other parameters being to the satisfaction of the Bank. Bank guarantees: Bank of Baroda on behalf of importers/ other customers issues guarantees in favour of beneficiaries abroad. The guarantees can be both Performance and Financial.
6) CORRESPONDENT BANKING
The extensive worldwide network of branches of Bank of Baroda offers Correspondent Banking services to the Indian Banks as well as banks from other countries. Our branches are capable of providing the services that an international correspondent Bank can offer. Select branches of the Bank are well equipped to handle the business of Correspondent Banking. The New York, Brussels and London Branches of the Bank are equipped with latest technology and are having trained and experienced staff for handling the maintenance of Nostro accounts in US$, Euro and GBP respectively. The overseas presence of the Bank is further supported by a large number of correspondent Banks (more than 500) which gives Bank of Baroda access to every corner of the Globe. The main services provided are: 1. Collection of bills both Documentary and Clean. 2. Advising / confirming of L/Cs opened by Indian Banks. 3. Discounting of Bills drawn under L/Cs as well as outside L/Cs. 4. Maintenance of foreign currency accounts (Nostro in US$, Euro, GBP at New York, Brussels and London respectively) for settlement of transactions (Link).
5. Making foreign currency payments/ remittance on behalf of customers of Indian Banks. Bank of Baroda offers an excellent service with competitive charges to other Banks for providing the Correspondent Banking Services.
7) TRADE FINANCE
Bank of Baroda through its overseas branches and subsidiaries, is very active in financing of Usance post sales international trade bills by way of discounting of the same. With its large foreign currency resources and overseas presence , Bank of Baroda is in a position to offer the most competitive rates for discounting of these bills. The bills under the L/Cs of the most of the Indian Banks as well as International Banks can be discounted at competitive rates. The Banks / Corporates desirous of discounting the bills under / outside L/Cs can contact the respective overseas money center branches / overseas subsidiaries OR contact the International Division, Central Office.
8) INTERNATIONAL TREASURY
Bank of Baroda has a strong presence in the Treasury Market in India as well as abroad. The overseas Money Centre Branches undertake the Forex treasury operations on behalf of the customers. All the Forex treasuries at the overseas money center branches are equipped with state of art technology, highly experienced and motivated staff with professional skills. These branches deal in all the major international currencies i.e. US$, GBP, Euro, Yen as well as other currencies. These branches undertake the following treasury related activities: Forex Inter Bank Placements/ Borrowings Sale & Purchase of currency on behalf of customers Forward Cover Bookings Cross Currency Swaps
Interest Rate Swaps (IRS) Forward Rate Arrangements (FRA's) Forex Money Market Operations
ST. ANDREWS COLLEGE
Page 42
FOREIGN EXCHANGE BUSINESS
Bank of Baroda undertakes various types of Foreign Exchange Transactions viz., i. Foreign Inward Remittance, ii. Foreign Outward Remittance, iii. Exchange Earners' Foreign Currency A/c. (EEFC) iv. Resident Foreign Currency A/c. (RFC) v. Import Business vi. Export Business vii. Forward Contracts viii. FCNR (B) ix. ECB Loans x. Arranging Debt / Floating Rate Notes / Quasi Debt instruments like Foreign Currency convertible bonds. xi. Providing consultancy and financial solutions for setting up joint ventures and wholly owned subsidiaries. xii. Arranging credit facilities / End to End Financial packages for overseas projects of Indian companies xiii. Issue of guarantees for overseas projects.
xiv. Buyer's Credit xv. Suppliers Credit xvi. International Merchant Banking Cell (IMBC) has been established at International Division to meet the expectations of corporates.
NRI SERVICES
Bank of Baroda commenced its overseas journey way back in 1953 and has nurtured Indians abroad to spread their business across the world. The Sun never sets at Bank of Baroda, popularly known as Indias International Bank. We continue to cherish our rich ethnic traditional values and culture, during our personal interface with NRIs residing abroad. Our wide network of foreign branches, offices and Correspondent Relations at convenient business locations all round the world, ensure a smooth and safe banking experience to NRIs. We understand your changing needs and expectation on Banking Services. Our state of art technology platform enables us to provide you host of tech savvy products at your comfort and convenience, thereby facilitating a global banking experience. We understand you, the NRIs and immensely value your patronage and would like to extend to you our bouquet of products and services. We assure you the best possible banking experience and will ensure that your wealth continues to grow with us. "Akshayam te bhavishyati" (Thou shalt forever be prosperous) Definition of NRI: Regulation 2(vi) of FEMA 5 Person resident outside India, who is a citizen of India or is a person of Indian origin Indian citizens working abroad on assignment with Foreign Governments, Govt. agencies or in UNO and its affiliates IMF, IBRD etc. and Govt. officials (both
ST. ANDREWS COLLEGE
Page 44
central and state) and other officials of PSU's deputed abroad on assignments or posted abroad including Diplomatic Missions. Non-resident foreign citizens of Indian origin are treated on par with NRI citizens for the purpose of certain facilities 1) NRI ACCOUNTS We will provide you details of the services, exchange rates and charges that apply to foreign exchange transactions. If you want to transfer money abroad, we will tell you how to do this and will give you a description of the services and how to use them. If money is transferred to your bank account from abroad, we will tell you the original amount received and charges,if any. Bank has got 103 authorized branches doing International business in India. These branches are having SWIFT facilities. Bank of Baroda with its wide network of Overseas Branches spread over 19 countries serves Non-resident Indians with a wide range of deposits and investment banking services. At present, the Bank has 57 branches/offices and 9 branches of joint venture overseas. Deposit schemes offered by Bank of Baroda to Non-resident are given below: 2) DEPOSIT PRODUCTS Foreign Currency Linked Rupee Deposits (FCLR) Scheme. Foreign Currency Denominated Non-resident Fixed Deposits (FCNR-FD). Non Resident External (NRE) (RUPEE) Savings Account. Non Resident External (NRE) (RUPEE) Current Account. Non Resident External (NRE) (RUPEE) Fixed Deposits. Non Resident Ordinary Rupee Savings Account (NRO-SB). Non Resident Ordinary Rupee Current Account (NRO-CA). Non Resident Ordinary (NRO) (RUPEE) Fixed Deposits.
ST. ANDREWS COLLEGE
Page 45
Resident Fgn Currency A/c - for NRIs returning to India for settling in India. Resident Foreign Currency (Domestic) Account - for Resident Indians. 3) Loan Facilities to NRIs Loans/Overdrafts Against Security of Non-Resident (RUPEE) Fixed Deposit. Loans Against FCNR (B) Deposits in Rupees. Loan Against FCNR (B) Deposits in Foreign Currency in India. Housing Loans to NRIs. 4) Loan Facilities in Foreign Currency to Residents Foreign Currency Loans In India (FCNR 'B' Loans). Pre-Shipment/Post-Shipment Credit in Foreign Currency to Exporters. External Commercial Borrowing.
ST. ANDREWS COLLEGE
Page 46
EXCHANGE AND INTEREST RATES
Exchange & Interest Rates applicable for 05-09-2012 Exchange Rates Currency GBP/INR GBP/INR GBP/INR USD/INR Rate Amount
88.26 Up to 1,000 88.31 1,001 - 5,000 88.36 5,001- 15,000 55.70 Up to $10,000
Deposit Rates GBP Period Amount 500 and above upto 500,000 AER/Gross
(Interest rates gross/p.a.) w.e.f 13/08/12 1 month to less than 3 months 0.90 3 months to less than 6 months 6 months to less than 12 months 12 months to less than 24 months 24 months to less than 36 months 0.90 1.44 2.01 3.00 3.45
1.45 2.03 3.00 3.39
ST. ANDREWS COLLEGE
Page 47
36 months to less than 60 months 60 months 4.40 4.06
3.80
3.66
Note : 1) The above rates are applicable for retail customer only. 2) AER as per lower maturity in related bucket. Forex [Currency selected vs Indian Rupee (INR)] Currency Rate Up/Down % Change US Dollar (USD) Euro (EUR) Dirham (AED) Yen (JPY) Ch. Yuan (CNY) 8.79 Up 0.30% 0.17 Up 0.15% 15.14 Up 0.26% 70.01 Up 0.35% 55.90 UP 0.45%
ST. ANDREWS COLLEGE
Page 48
GLOBAL PRESENCE - OVERSEAS BRANCHES

BRANCHES Bahamas Bahrain Belgium China Fiji Islands Hong Kong Mauritius Republic of South Africa Seychelles Singapore Sultanate of Oman United Arab Emirates United Kingdom United States Of America SUBSIDIARIES Botswana Ghana Guyana Kenya New Zealand Tanzania Thailand Trinidad & Tobago Uganda JOINT VENTURE Zambia Malaysia REPRESENTATIVE OFFICES Australia
ST. ANDREWS COLLEGE
Page 49
ARTICLES FROM ECONOMIC TIMES

YEN forecasts showing lack of conviction, await fed's next move:l
Japanese yen forecasts were frozen in the latest Reuters foreign exchange poll, showing a lack of conviction amongst strategists despite signs of an improving picture in major trading partner the United States. Forecasters have been increasingly reluctant of late to make big bets on a depreciation in the yen, having been burned by the currency's relentless strength in recent years on safe-haven bids. But there was an almost total lack of movement among consensus views across the various points over the 12-month horizon, as well as consistent spreads of forecasts. A refuge for investors looking for a quick place to park cash, the yen has weakened about 2 per cent against the dollar so far this year, clawing back some of the 6 per cent rise it clocked in 2011. That, said some analysts, is a reflection of the fact that Japanese policymakers remain concerned about yen strength, due to Japan's dependence on exports, and will likely to do whatever it takes to prevent it from appreciating any further. If the US Federal Reserve takes a third stab in September at printing money - or QE3 - as many in the market suspect, the Bank of Japan, which is sounding increasingly pessimistic about the domestic outlook, is likely to follow suit. "The BoJ will respond to whatever the Fed does, and I think the Fed will probably ease policy further. It does look like we will get improvements in the US economy, especially in the labour market, but the improvements will not be sustainable or substantial," said Colin Asher at Mizuho Corporate Bank. "My best guess is that the Fed will probably extend the time frame of (holding) interest rates rather than go for asset purchases, which I think they will leave in the tank until after the elections."
ST. ANDREWS COLLEGE
Page 50
The United States goes to the polls in the first week of November and many investment decisions and in corporate boardrooms appear to be frozen until then, as well as until the full impact from an expected fiscal tightening in early 2013 can be gauged. Expiring tax breaks and decreased government spending are all expected to slow the US economy in the first quarter of next year. Uncertainty around the so-called "fiscal cliff" has already resulted in businesses deferring hiring plans. Either way, it would appear that forecasters, who often move their views according to the way the currency trades each month, are waiting for a decisive break in the yen's strength before they change their views.
Rupee hits 3-week low on fall in shares, EURO

The rupee dipped to its lowest level in three weeks on Wednesday, weighed down by losses in domestic stocks and the euro, on skepticism about the European Central Bank's ability to unveil a concrete plan to help debt-laden euro zone economies. The euro had been rallying on hopes of some concrete steps from the ECB after its meeting on Thursday, but closer to the date investors grew cautious and preferred to cut back on their long positions on the single currency. A bout of risk aversion was seen across regional share markets as investors traded nervously ahead of the ECB meeting and the U.S. jobs report. "Market is skeptical of the ECB's bond-buying plan, but any positive move from (ECB President) Draghi will help risk sentiment," said Vikas Babu Chittiprolu, a foreign exchange dealer with state-run Andhra Bank. "There was oil demand also seen today along with the risk aversion globally, which hurt the rupee," he added. Oil refiners are the largest buyers of dollars in the domestic currency market. The partially convertible rupee closed at 55.9050/9150 per dollar, 0.46 percent weaker than its close of 55.65/66 on Tuesday. The unit dropped to as low as 55.9575 during the day, its weakest since Aug. 16.
The euro dropped on the back of growing scepticism among investors but losses were limited as some still bet the ECB would announce details of a bond-buying programme to lower Spanish and Italian borrowing costs. Traders said dollar sales by exporters around 55.95 levels helped the rupee recover some ground. However, a fall below that level was likely this week if the ECB disappoints, they added. The one-month onshore forward premium dropped to 34.25 bps versus its previous close of 36.25, while the one-year premium eased slightly to 335.50 bps against 337.75 bps on Tuesday. The one-month offshore non-deliverable forwards were at 56.27, while the threemonth was at 56.90, reflecting a bearish near-term outlook. Traders said the rupee was likely to hold in a 55.75 to 56.25 band on Thursday, the ECB meeting outcome being the key. In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 56.12 with a total traded volume at around $3.08 billion.
Bank of Baroda: Strong growth in treasury, forex income leads to higher PAT
Investment Analysis Bank of Barodas Q3FY12 PAT grew 21% YoY to Rs12.9b. While provisions at Rs8.4b were significantly higher than Motilal Oswal's estimate of Rs4.8b, strong growth in treasury (Rs3.9b v/s Rs848m in Q3FY11) and forex income (Rs2.4b v/s ~Rs1.5b in Q2FY12 and Q3FY11) led to higher than estimated PAT. - Slippages at Rs9.5b: Slippages during the quarter stood at Rs9.5b (annualized slippage ratio of 1.8% v/s 1.2% in Q2FY12), of which Rs3b was on account of the aviation sector. Gross NPAs increased 14% QoQ to Rs39b, whereas net NPAs increased 18% QoQ to Rs13.2b
ST. ANDREWS COLLEGE
Page 52
- Restructured loans of Rs21.2b during the quarter: In Q3FY12, bank restructured loans of Rs21.2b (~120bp of domestic loans), led by the large corporate segment. Total outstanding domestic restructured book stands at ~Rs99.5b (5.5% of domestic loans), of which ~12.7% has turned into NPAs. - Domestic margins decline 16bp QoQ: Reported domestic margins were 3.51% v/s 3.67% a quarter ago. While cost of deposits increased 6bp QoQ, yield on loans declined 13bp QoQ, leading to margin decline. - Business growth improved; domestic CASA ratio at 34% - flat QoQ: Overall loans grew ~9% QoQ and 26% YoY to Rs2.6t. Global deposits grew 24% YoY and 6% QoQ. Global and domestic CASA deposit grew at ~16% YoY. Stock Valuation and Recommendation: Motilal Oswal expects the bank to report an EPS of Rs122 for FY12 and Rs133 for FY13. BV is expected to be Rs606 in FY12 and Rs713 in FY13. The stock trades at 1.3x FY12E BV and 1.1x FY13E BV. Motilal Oswal believes credit cost is at its best and room for positive surprise is limited. Maintain Neutral.
ST. ANDREWS COLLEGE
Page 53
INFORMATIONAL INTERVIEW QUESTIONS AND FINDINGS

The following are the answers to questions asked to a forex chief manager working in Bank of Baroda. This is an informational interview conducted with a forex chief manager. The main purpose of this study is to learn about the overall status of forex in Bank of Baroda
1) What is the overview of forex in India? You mean pace of acquiring forex and/or process? To slow. Have a lot of red tape like a government. Also the complete benefit of currency rate differences is passed on to us and in turn the customer. E.g. If the dollar value is 49.8988, the customer gets 48.89. But that happens to the .0088. This kind of transparency is good. It will improve the perception of bob in the minds of its customers.
2) What challenges does forex in Bank of Baroda have to face due to constant fluctuation in prices? Current fluctuations are burning a hole in the customer's pocket. One option to mitigate that will be to update prices as they fluctuate. This needs to be effectively communicated.
3) How is forex in Bank of Baroda working as compared 2 foreign, private, public & other banks? BOB takes too long to communicate change in prices, also there's too much paper work involved. It's at par with tier 2 banks. But a lot needs to be done wrt an ICICI or HDFC Bank
ST. ANDREWS COLLEGE
Page 54
4) What effect does forex in Bank of Baroda have on the younger generation? It makes studying abroad very expensive. It will be great if BOB can think of schemes where students can block the forex rate of purchase by booking it in advance for a fee.
5) What services does forex in Bank of Baroda provide to their customers in general? Bob provides the following forex services: Through its large network of authorized branches, the bank caters to the foreign exchange needs of its clientele engaged in export and import trade and the SITB provides rates for conversion of all major world currencies like U S Dollar, Sterling Pounds, Euro, Swiss Francs, Japanese Yen and other exotic currencies. The services to the customers of the Bank include hedging of foreign currency risks by providing forward covers and various derivatives product. Since most of its overseas branches are strategically situated at places where sizeable Non-resident Indians are residing, the Bank is in a position to deliver its products promptly and efficiently to its NRI customers. The range of products include remittance facilities and acceptance of deposits in Indian Rupees (NRE / NRO) as well as in designated foreign currencies (FCNR). Resident as well as Returning Indians can avail of benefits like Resident Foreign Currency Accounts (RFC).
6) Are the customers even aware of the services provided by Bank of Baroda related to forex? Do they find it easier to understand it? No, as they aren't marketed/ communicated well enough for the different target audiences.
7) What measures or steps have been taken to improve customer services? The following measures have been taken for customers betterment:
Provide a toll free number for inquiries. Provide banking/forex at the door step for NRI clients like axis bank does. Presentation: provide the currency in well-designed envelopes, if the amount isn't wired. Place content on the BOB website which will educate the customer and partners about forex and other rules and regulations. This content must also highlight the advantage of banking with BOB.
Provide content like tips etc. for tourists and students, this will position the bank as an advisor. Create a mobile app for smartphones. Leverage social media and engage clients and prospects through various social platforms like Twitter and Facebook and other financial blogs n forums.
Respond to consumer complaints n queries on various social media platforms.
ST. ANDREWS COLLEGE
Page 56
ANALYSIS AND INTERPRETATION

The main purpose of the interview was to evaluate and get to know about the overall aspect of forex in Bank of Baroda. From this interview we got to know that forex in India cannot be performed smoothly. It has lot of government interference. If a customer has to exchange currency he doesnt get the market price instead the price decided by the bank after the bank cutting its commission. Bank of Baroda charges very less amount of commission so it doesnt bother the customers much. We get to know that customers find it really difficult to manage their savings and run their livelihood because of high fluctuation in currency rates like dollar and rupees which has intently led to rise in prices. Customers must also be updated with the recent price fluctuations and the current currency rate in banks. We know that as Bank of Baroda is a public international bank, there is a lot of paper work involved because of which it cannot undergo changes as compared to other banks in all terms. We understood that the impact of forex in BOB on younger generation is due to constant fluctuation in prices students preferring to study abroad find it quiet expensive to pay up for their fees. Since BOB has its wide network all over the globe it can provide various forex services, it also indulges itself in derivative products. It can provide more of its services to NRIs as its branches are located all over the globe and its beneficial for non-resident Indians. We came across the bad thing about BOB that is that its customers are hardly aware of the facilities or services they provide. They dont publish their services. We have seen that BOB has made it a point to implement various services for the benefit of customers and for the betterment of the country.
ST. ANDREWS COLLEGE
Page 57
RECOMMENDATIONS
We have analysed the overview of forex in BOB with the help of the interview taken. Thus we find that in order for Bank of baroda to excel it needs to make its customers aware of its services as assessed through the interview. Government should impose only required restrictions on the working of forex in government banks. Banks must come up with less interest rates and many schemes in which customers can invest their savings for future use. Bankers must provide customers with the knowledge related to Demart Trading, Investment, Fixed Deposits, how to invest in stock exchanges with foreign currency or help the customers who deal in export-import trade. Government should carry out its formal procedures faster as compared to other banks. Government should come up with schemes in which students can block the forex rates by booking in advance for their fees. BOB does provide various forex services to customers but they must come up with advertisements, broachers, schemes, etc. so that their customers are aware of it and make it a point to implement it in their daily life. NRIs must be provided with different investment facilities so that they can invest their foreign currency in Indian stock market for higher returns. I would like to suggest BOB to follow whatever plans they come up with especially in their website as most of the pages made for customers are under construction or they are not displayed. Even the employees must become more active in their job and come forward to help its customers as and when required.
ST. ANDREWS COLLEGE
Page 58
CONCLUSION
I conclude by saying that since most of its overseas branches are strategically situated at places where sizeable Non-resident Indians are residing, the Bank is in a position to deliver its products promptly and efficiently to its NRI customers. The range of products include remittance facilities and acceptance of deposits in Indian Rupees (NRE / NRO) as well as in designated foreign currencies (FCNR). Resident as well as Returning Indians can avail of benefits like Resident Foreign Currency Accounts (RFC).
ST. ANDREWS COLLEGE
Page 59
REFERENCE
The main references are as follows:WIBLOGRAPHY www.bankofbaroda.com www.economictimes.indiatimes.com www.forexrates.in www.bestbankaccounts.in www.bankofbarodauk.com www.valuenotes.com BIBLIOGRAPHY Introduction to Banking by Vijayaracavan Iyengar. Fundamentals of International Banking by Rupnarayan Bose. International Finance by Maurice D. Levi & V. A. Avadhani. Global Financial Management by Joseph Anbarasu.
ST. ANDREWS COLLEGE
Page 60
ANNEXURES
1) What is the overview of forex in India?
2)
What challenges does forex in Bank of Baroda have to face due to constant fluctuation in prices?
3)
How is forex in Bank of Baroda working as compared 2 foreign, private, public & other banks?
4)
What effect does forex in Bank of Baroda have on the younger generation?
5)
What services does forex in Bank of Baroda provide to their customers in general?
6)
Are the customers even aware of the services provided by Bank of Baroda related to forex? Do they find it easier to understand it?
7)
What measures or steps have been taken to improve customer services?
ST. ANDREWS COLLEGE
Page 61

FOREX IN B Amp I

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

FOREX IN B Amp I

Transféré par

Droits d'auteur :

Formats disponibles

FOREX IN BANK OF BARODA

AN OVERVIEW OF BANKING SECTOR IN INDIA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

FOREX IN BANK OF BARODA

FOREX IN BANK OF BARODA

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

FOREX IN BANK OF BARODA

INTRODUCTION TO FOREIGN EXCHANGE MARKET (FOREX)

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

INTRODUCTION TO BANK OF BARODA (BOB)

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

FORAY INTO EDUCATION

FOREX IN BANK OF BARODA

BANK OF BARODA FINANCIALS 2012

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

INTRODUCTION TO FOREIGN EXCHANGE IN BANK OF BARODA (FOREX IN BOB)

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

Banker's fair practices code

FOREX IN BANK OF BARODA

Banking Codes and Standards Board of India

FOREX IN BANK OF BARODA

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

FOREX SERVICE CHARGES

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

>1 crore upto 5 crore >5 crore Minimum Rs.1000/No concession

validity or enhancement of its value.

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

2.14 Back to back Letter of Credit.

Back-to-back letters of credit will be

money orders, bankers pay orders payable abroad.

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

FOREX IN BANK OF BARODA

goods pending production of bill of lading.

0.25% for three months at the time

ECGC Cover ECGC Premium

ST. ANDREWS COLLEGE

FOREX IN BANK OF BARODA

Bank Comm. Total cost to exporters

ST. ANDREWS COLLEGE