Name Sameer Sadanand Tawde IBS Campus: Mumbai

Enrolment Number: 12BSP1086 Mobile Number: 9969078059/9773528905

Email ID: sameertawde5@hotmail.com, sameertawde5@yahoo.co.in. Project Proposal: Project Name: Export Import Market Documentation and currencies that are being traded in Abhyudaya Cooperative Bank Project Time Frame: 12 March to 1 June Summary: Abhyudaya Cooperative Bank deal with lending money like as other banks and now it has grown its standard from Cooperative Bank to Multi State Scheduled Bank by which it has many other functional areas. Abhyudaya cooperative bank has its operating branches in three states of India Maharashtra Gujarat Karnataka it has tried to further increase its branches in various parts of Maharashtra It has even tried to tap other market and tried to diversify the banking sector instead of focusing to borrowing and lending; the other

Banks Main Functions are 1) 2) 3) 4) Collection of Deposits and Lending to earn income Banks Exposure to Real Estate Banks Exposure to Educational Institutions Foreign Exchange Export Import Finance

Documents to be executed during disbursement for Export Import are

1) 2) 3) 4) 5) 6) Demand Promissory Note Deed of Hypothecation Letter of Guarantee Insurance policy to cover full value of stock ECGC Cover Collateral Security as per sanction terms other usual documentation as stipulated in the documentation manual.

Export packing credit

1) It should take care of the finance

2) It should take care of erosion the value of security 3) It should ensure that finance is not extend against Profit margin

The Packing credit advance should be liquidated out of the export proceeds by negotiations of bill or advance against bill sent on collection The pre shipment credit gets converted onto post shipment credit. This conversion is necessary because the ECGC guarantee cover for the preshipment credit will be available only up to the date of shipment

Import Finance Policy Methods of Financing

1) Projected Turnaround Method 2) MPBF method 3) Cash Budget Method

Foreign Exchange Management Act 1999 The foreign exchange Management Act seeks to bring the law on the subject upto date keeping in view the exchanged in environment This act aims at consolidating and amending the law relating to the foreign Exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange markets in India.

 Central Government Reserve Bank of India Authorised Persons Authorised Money Changers Authorised Dealers Foreign Exchange Dealerss association of India Category I Category II Category III

Foreign Exchange Managment Act

Category I

A major portion of actual dealing in foreign exchange from the customers importers exporters and others receiving or making personal remittances

Category II

They comprised of upgraded fully fledged money changers Cooperative banks regional rural banks and others. They can purchase foreign exchange and sell foreign exchange for private and business visits abroad undertaken by residents which is performed by a full-fledged money changers

Category III

They comprise of selected financial and other institution. They are permitted to carry out transaction incidental to the foreign exchange activities undertaken by them

FEDAI
Foreign exchange dealers association of India Established in 1958

All authorised dealers in India of category I and Category III currently numbering over 90 are its members. It has its headquarters at Mumbai and local office at Bangalore Kolkata Chennai and New Delhi Financing Exports Financing Exports Financing Imports Remittance Facilities Dealings in Foreign Exchange Furnishing Credit Information

Correspondent arrangement -Services under correspondent relationship - Account relationship

Foreign currency accounts

-Nostro Account The term nostro account is used by the bank which maintains the account to refer to its account with other bank For a bank in India nostro account is an account maintained by with a bank abroad -Vostro Account The term vostro is used by the bank with which account is maintained. A foreign bank may open rupee account with an Indian Bank . While corresponding with the foreign bank maintaining account with it, The Indian Bank would refer to the accounts as vostro account meaning your account with us -Loro Accounts

The term loro is used when the account is reffered by a bank other than the account maintaining bank and the bank with which the account is maintained . In other words it is used with respect of third party accounts.

Preshipment Finance Post Shipment Finance Export Guarantees Advising confirming letters of Credit Facilitating project exports Bills for collection

Issue of DD TT etc Encashment of Travellers Cheques Sale and encashment of foreign currency notes non resident deposits

Opening Letter of Credit Advance Bills Bills for collection Import loan and Guarantees

Exports Sections

Remitances Secctions
Rate Computation Nostro Vostro Accounts Forward Contracts Derivatives Exchange Dealing

Imports Section

Submission of Returns Collection of crdt information

Dealing Sections
International Exchange System -Fixed Exchange rate 1. 2. 3. 4. 5. 6. 7. 8. Promotion of International Trade Promotion of International Investment Facility of Long range planning Prevention of Speculation Small open economies Inflation Terms of Trade Competitive Exchange Depreciation

Statistics Section

-Floating Exchange Rate 1. 2. 3. 4. 5. 6. Adjustment of Balance of Payments Better Confidence Better Liquidity Gains from free Trade Independence of policy Cost price Relationship

-Exchange Rate System Prior to IMF 1. Gold Currency Standard 2. Gold Bullion Standard 3. Gold Exchange Standard

Exchange Rate System under IMF 1. 2. 3. 4. 5. 6. 7. Original Scheme under IMF Working of the System Collapse of the System Smithsonian Agreement Abolition of Gold and Emergence of SDR Second Agreement of IMF Articles IMF Surveillance - Country Surveillance - Global Surveillance - Regional Surveillance

Objective

To understand the process of export import that takes place and what all are the other documents and process required what all the other factors that has been attached to it. Fluctuation in currency rates that keeps affecting the need of the exporter and importer.
Limitation

Getting the process of export import is quiet difficult as the rules for some part of the country would differ as compared with other parts of the world. Getting through the documents is getting through the confidential part of the system and getting it or knowing about it creates limitation in the view of understanding the process.

Proposed Methodology

At first use secondary source or getting the information and then with the combination of both primary and secondary try to compile the data in to my Project.

As in I started with the getting through the documents that company already had. In later part I would see or look forward about its process and the rate of foreign exchange that hampers the both importer as well as exporter. Daily fluctuation in foreign exchange makes either importer or exporter for its favourable conditions.

Schedule It would be monitored under as per the time allotted for me to understand the process that takes place and is being carried out in the bank along. I would be covering topics phase wise and particularly with its implementation parts in later phase as on I am going through is its process and common general terms that bank follows. Understanding the terms is of greater importance and that would enhance my knowledge in long run in later part of the implementation.
References

The data that is being gathered is either through data that has been hand over by the bank for short term intern ship course. The other sources would be the staff who would have helped me in understanding the process.

Faculty Guide Name: Company Guide name:

Prof. V. Rajini D.G.M. K. B. Sawant

Date: 5 April 2013

Sameer Tawde