BFM A - Unit 5 set 2 - Motivational Banker

1. What is a mandatory requirement for the issuance of Standby LCs in India?

Submission of a detailed business plan

Credit report on the overseas supplier

Guarantee of full payment by the importer

Approval from the Reserve Bank of India (RBI)

Question 1 of 34

2. What is one of the eligibility criteria for obtaining the Gold Card for exporters?

Having a minimum export turnover of $1 million

Being listed on the caution lists for financial stability

Demonstrated creditworthiness with a standard account maintained for at least three years

Recording losses in the preceding three years

Question 2 of 34

3. What is the purpose of the standby limit provided under the Gold Card scheme?

To limit the exporter's access to funds

To ensure financial assistance aligns with business needs and growth aspirations

To charge additional fees for financial flexibility

To discourage exporters from applying for loans

Question 3 of 34

4. What is the disposal timeline for ad hoc requirements under the Gold Card scheme?

Processed within 25 days

Addressed within 15 days

Resolved within 7 days

Resolved within 30 days

Question 4 of 34

5. What benefit do exporters enrolled in the Gold Card program enjoy regarding interest rates?

Higher interest rates compared to standard loans

No change in interest rates

Concessional rates of interest determined at the discretion of the bank

Fixed interest rates for the entire loan tenure

Question 5 of 34

6. What is the loan period for demand bills in post-shipment export credit?

9 months

15 months

21 days

Aligned with the Normal Transit Period (NTP)

Question 6 of 34

7. How is the due date calculated for usance bills in post-shipment credit?

By subtracting the NTP from the usance period

By adding the NTP to the usance period

By doubling the usance period

By deducting the usance period from the NTP

Question 7 of 34

8. What does the process of crystallization involve in post-shipment credit?

Converting rupee liabilities to foreign currency liabilities

Selling foreign currency to the exporter at the Telegraphic Transfer (TT) buying rate

Mitigating exchange rate fluctuation risks by converting foreign currency liabilities to rupee liabilities

Repayment of loans through various channels

Question 8 of 34

9. How are reporting obligations to the Reserve Bank of India (RBI) streamlined in post-shipment credit?

Reports are submitted semi-annually on Form XOS

Reports are submitted quarterly on Form XOS

Reports are submitted annually on Form XOS

Reports are submitted monthly on Form XOS

Question 9 of 34

10. What is the primary eligibility requirement for exporters to qualify for pre-shipment credit?

Confirmation of export order

Listing on the caution list of RBI

Possession of an Importer Exporter Code (IEC)

Approval by the Export Credit Guarantee Corporation (ECGC)

Question 10 of 34

11. How is the loan amount determined for pre-shipment credit?

It is fixed based on the exporter's credit history

It is linked to the Free on Board (FOB) value of the goods

It is determined by the exporter's running account balance

It is based on the government subsidy received by the exporter

Question 11 of 34

12. Which accounts may avail themselves of the running account facility for pre-shipment credit?

Only 100% Export Oriented Units (EOUs)

Only Special Economic Zone (SEZ) Units

Only Export Processing Zone (EPZ) Units

Established exporters, including 100% Export Oriented Units (EOUs), Special Economic Zone (SEZ) Units, and Export Processing Zone (EPZ) Units

Question 12 of 34

13. How are adjustments made for accounts operating on a running basis?

On a last-in-first-out (LIFO) basis

On a highest-balance-first basis

On a first-in-first-out (FIFO) basis

On a random basis

Question 13 of 34

14. What government subsidy is available for select exporters under pre-shipment credit?

2% interest subvention

3% interest subvention

5% interest subvention

7% interest subvention

Question 14 of 34

15. What is the timeline for the submission of export documents to the Authorized Dealer (AD) bank?

Within 15 days from the date of export

Within 30 days from the date of export

Within 21 days from the date of export

Within 45 days from the date of export

Question 15 of 34

16. What is the maximum realization time limit for goods exported to overseas warehouses?

6 months from the date of shipment

9 months from the date of shipment

12 months from the date of shipment

15 months from the date of shipment

Question 16 of 34

17. How can exporters apply for an extension if they fail to meet the realization time limits?

Through direct contact with the Reserve Bank of India (RBI)

By submitting a request to the Ministry of Commerce and Industry

By submitting Form ETX to the Authorized Dealer (AD) bank

By contacting the Export Data Processing & Monitoring System (EDPMS)

Question 17 of 34

18. How is reporting on overdue bills facilitated since March 1, 2014?

Through submission of Form XOS to the Reserve Bank of India (RBI)

Through submission of Form XOS to the Export Data Processing & Monitoring System (EDPMS)

Through submission of half-yearly statements to the Ministry of Commerce and Industry

Through submission of half-yearly statements to the Authorized Dealer (AD) bank

Question 18 of 34

19. What is the process for delisting from the caution list by the Reserve Bank of India (RBI)?

Automatic delisting after a certain period of time

Delisting upon request from the exporter

Delisting based on recommendations from the Authorized Dealer (AD) bank

Delisting based on recommendations from the Ministry of Commerce and Industry

Question 19 of 34

20. What is the maximum percentage by which AD banks can allow reductions in the invoice value?

10%

15%

20%

25%

Question 20 of 34

21. Under what circumstances can exporters with a track record of the last 3 years have reductions in invoice value without any percentage restriction?

If their export bill outstanding exceeds 5% of the average annual turnover for the preceding 3 calendar years

If their export bill outstanding is within 5% of the average annual turnover for the preceding 3 calendar years

If their export bill outstanding is above 10% of the average annual turnover for the preceding 3 calendar years

If their export bill outstanding is below 5% of the average annual turnover for the preceding 3 calendar years

Question 21 of 34

22. In what situations can AD banks authorize refunds of export proceeds?

Based on evidence of re-importation due to poor quality, trade disputes, etc.

Only if requested by the exporter

Without any specific reason required

Based on the discretion of the Reserve Bank of India (RBI)

Question 22 of 34

23. What conditions must be met for AD banks to permit changes in the buyer of export transactions?

The reduction in value should not exceed 10% of the invoice value, and realization must occur within 6 months.

The reduction in value should not exceed 20% of the invoice value, and realization must occur within 12 months.

The reduction in value should not exceed 25% of the invoice value, and realization must occur within 9 months.

The reduction in value should not exceed 30% of the invoice value, and realization must occur within 3 months.

Question 23 of 34

24. Under what circumstances can exporters avail EDF Waivers?

Only if the export value is below Rs. 5 lakhs.

When exporting goods for testing purposes.

When participating in trade fairs and exhibitions.

In all of the above scenarios.

Question 24 of 34

25. What is the maximum value limit for exporters in the Gems & Jewellery sector to avail EDF Waivers?

Rs. 5 lakhs

Rs. 1 crore

2% of the average annual export realizations during the preceding 3 licensing years

Rs. 2 crores

Question 25 of 34

26. How much can Status holders/SEZ Units avail GR Waiver certificates up to?

5% of the average annual export realizations during the preceding 3 licensing years

8% of the average annual export realizations during the preceding 3 licensing years

2% of the average annual export realizations during the preceding 3 licensing years

Rs. 10 lakhs

Question 26 of 34

27. What is the maximum percentage of the average annual turnover of the last two years allowed for remittances by Authorized Dealers (ADs) for setting up offices abroad?

10%

15%

25%

Question 27 of 34

28. Under what conditions can exporters directly dispatch documents to consignees?

If payment is received through LC only

If payment is received for at least 50% of the shipment value

If the exporter is a regular customer or a status holder, and full payment or an irrevocable LC is received for the full value of the shipment

If the consignee requests direct dispatch

Question 28 of 34

29. What is the maximum percentage allowed for partial drawings of the full export value?

10%

15%

20%

Question 29 of 34

30. What is the maximum reduction in value allowed in the event of a change of buyer?

10%

15%

20%

25%

Question 30 of 34

31. What is the maximum extension period for the realization of export proceeds that AD banks can grant upon request from exporters?

3 months

6 months

9 months

12 months

Question 31 of 34

32. What is the maximum value allowed for total extensions exceeding 1 year, as per the provided guidelines?

USD 500,000

USD 750,000

USD 1,000,000

USD 1,250,000

Question 32 of 34

33. How much of the total export realized in the previous calendar year can status holders write off for unrealized export bills remaining outstanding for over 1 year?

10%

12%

Question 33 of 34

34. What is the effective method of realization for Indian Rupee (INR) bills?

Credited to the NOSTRO account

Debited in the VOSTRO account

Credited to the exporter's account

Debited in the exporter's account

Question 34 of 34

BFM A – Unit 5 set 2

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