Niryat Protsahan Schemes — Export Promotion Mission

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Scheme 01

Support for Emerging Export Opportunities

Exporters often face difficulty in confirmation of Letters of Credit when dealing with buyers in new or high-risk markets. Alongside, banks also have limited risk appetite to support transactions in these markets. This intervention extends guarantees for LC-backed transactions, thereby enhancing confidence in trade settlements, strengthening the capacity of banks to support constrained cross-border transactions, and fostering partnerships between Indian banks and local banks abroad.

📋 3 Financial Instruments

📋 Letters of Credit

Stand-by Letters of Credit

A Standby Letter of Credit will be issued by Exim Bank in favour of a partner bank in India (Confirming Bank / Negotiating Bank) that adds its confirmation or negotiates a trade instrument such as a Letter of Credit (LC) issued by an overseas Issuing Bank for the export of goods or services from India. Under the SBLC, Exim Bank undertakes to make payment to the Confirming Bank or Negotiating Bank for the committed amount in the event that the Issuing Bank fails to honour its obligation on the due date.

💰 Risk Sharing

Risk Participation

If a partner bank is unable to partner with the importer's bank to support a trade transaction due to insufficient exposure limits on the importer's bank, Exim Bank shares the risk with the confirming or negotiating bank under a Master Risk Participation Agreement.

🛡️ Guarantee

Irrevocable Reimbursement Undertaking

Under this mechanism, Exim Bank acts as the reimbursing bank. At the request of an overseas Issuing Bank, an Irrevocable Reimbursement Undertaking will be issued in favour of a commercial bank in India under the LC issued by the Issuing Bank. Under the comfort of the IRU, partner banks may negotiate the export bills and submit their reimbursement claim to Exim Bank on the due date.

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Scheme 02

Credit Assistance for E-Commerce Exporters

The intervention seeks to enhance access to working capital for MSMEs engaged in international trade through e-commerce. The objective is to enable them to manufacture goods in anticipation of export demand and scale up their participation in global markets. Under this Intervention, credit guarantee cover will be extended to banks for credit assistance extended by them in the form of Cash Credit, Overdraft, or other Working Capital facilities to eligible beneficiary entities, in accordance with the coverage parameters. These facilities will also be supported through interest subvention, in accordance with the notified ceilings.

📦 2 Credit Facilities

📋 Direct Credit

Direct E-Commerce Credit Facility

Under this mechanism, overdraft/ cash credit facility shall be extended by Member Lending Institutions for exporters engaged in direct exports through postal/ courier route.

🎬 Schematic Process Flow 📄 Draft Standard CA Certificate

💰 Inventory Credit

Overseas Inventory E-Commerce Credit Facility

Under this mechanism, working capital facility shall be extended by banks/ financial institutions storing their inventory in overseas warehouses.