A forward contract is a contract between the bank and its customer to buy or sell a specific currency at a specified future price for delivery on a specified future day beyond the Spot Date.
Period of Delivery:
A contract can be booked for a future fixed date of delivery or can have a window period of delivery where the contract must state the first & last date of delivery. The window period should be specified by the customer in such a way that the last date of delivery shall not exceed 1 month.
For Example: 19th Apr 2023 to 18th Mar 2023 & 31st Jan 2023 to 28th Feb 2023
Delivery in case of Holiday:
If the fixed date of delivery or the last date of delivery is a known holiday (which is known at least 3 working days before the date) the last date for delivery should become the preceding working day. In case of suddenly declared holidays, the contract shall be deliverable on the next working day
For Foreign Exchange business, Saturday will not be treated as a working day
Early delivery:
Yes, a forward contract can be utilized before its utilization period starts. In this case, the bank can recover or pay the swap difference. The bank also recovers the Interest on outlay and inflow of funds for such swaps.
Extension of forward contract:
In an extension of the forward contract, the earlier contract is cancelled at the current selling or buying rate and rebooked simultaneously at the current market rate. The difference between the earlier booked rate and the rate at which the contract is cancelled is recovered or paid to the customer.
Recovery/ Payment of Loss /Gain:
In case of cancellation of a contract at the request of a customer and if the request is made on or before the maturity date the bank recovers the loss or passes on the profit, the actual difference between the booked rate and the rate at which the cancellation is affected.
In the absence of any instructions from the customer, a contract which has been matured is cancelled by the bank within the 3 working days after the date of maturity
Please note that if a contract is cancelled after the maturity date, the bank is not liable to pass on the profit on the contract, if any, but the loss incurred in the contract shall be recovered from the customer.
Different Schemes of Hedging of Foreign Currency Exposure through forward contracts?
There are two types of exposures under which hedging can be done i.e. Contracted & Anticipated, all existing facilities such as Past Performance, Simplifies hedging, and Self-declaration have been withdrawn with effect from 01 September 2020 by RBI vide its master direction RBI/FMRD/2016-17/31 updated on 01.09.202.
What is contracted exposure?
It is an exposure to the exchange rate of the Indian Rupee against a foreign currency on account of current and capital account transactions permissible under FEMA, which have already been entered into. For Example, if an exporter has already received a purchase order and agreed to supply goods against it, then booking a forward contract against the same order is called contracted exposure.
What is anticipated exposure?
Exposure to the exchange rate of the Indian Rupee against a foreign currency on account of current and capital account transactions permissible under FEMA, which are expected to be entered into the future. For Example, if an exporter expects that he will receive a purchase order of at least 1 million dollars every month based on his experience and prospects, then booking a forward contract for such future exposures is called anticipated exposure.
What is the difference between contracted exposure and anticipated exposure for hedging foreign currency exposure by resident Indians?
Contracted Exposure
Anticipated Exposure
Exposure is hedged based on the contractual exposure which already exists
Exposure is hedged based on the exposure which is anticipated in future.
Proof of underlying exposure is not required for booking forward contracts up to USD 10 Million or its equivalent, however, the bank can demand the same whenever is required
Proof of underlying exposure is not required for booking forward contracts up to USD 10 Million its equivalent
Application & Forward Booking confirmation to be submitted to AD Bank within 15 calendar days through digital/ physical mode
Application & Forward Booking confirmation to be submitted to AD Bank within 15 working days through digital/ physical mode
Can be rebooked or cancellation
Can be rebooked or cancelled
Profit or loss fully passed or recovered
Losses are recovered upfront however profit is withheld & passed to the customer after submission of necessary documentation proof of Cash Flow.
Authorised Dealers may, in exceptional cases, pass on the net gains on contracts booked to hedge an anticipated exposure whose underlying cash flow has not materialised, provided it is satisfied that the absence of cash flow is on account of factors which are beyond the control of the user
The notional and tenor of the contract should not exceed the value and tenor of the exposure.
The notional and tenor of the contract should not exceed the value and tenor of the exposure.
If outstanding notional increasing USD 10 mio in the same FY underlying documents are required for fresh booking as well as for existing outstanding contracts
If outstanding notional increasing USD 10 mio in the same FY, evidence of cash flows on a contract basis is required for all outstanding contracts
The same exposure should not be hedged using any other derivative contract.
The same exposure has not to be hedged using any other derivative contract.
CGTMSE Scheme: Maximum Coverage Raised to Rs. 500 Lakhs
The Indian economy is supported by micro and small businesses (MSEs). However, because they frequently lack collateral or credit history, small companies frequently struggle to get loans from conventional financial institutions. (CGTMSE) the scheme was created by the Indian government to address this issue.
(SIDBI) and (MSMEs) introduced the CGTMSE program in August 2000. By ensuring a percentage of the loan amount, the initiative aims to give micro and small businesses access to credit without the need for collateral.
A lender (bank or finance institution) gives loans to MSEs within the CGTMSE scheme without requiring any kind of security. Any micro or small enterprise engaged in manufacturing, trading or service activities can avail of the benefits of the CGTMSE scheme. The scheme covers both new and existing enterprises, including those in the retail trade, agriculture, and allied activities.
According to a notification issued by the Indian government on March 31, 2023, there have been substantial changes made to the (CGTMSE) program. The CGS-I scheme’s coverage ceiling has been raised from Rs. 200 lakhs to Rs. 500 lakhs as a result of the notification with reference number CGTMSE/44/293 and circular number 220/2022-23.
The CGS-I scheme provides credit guarantees for micro and small enterprises (MSEs) for the credit facilities extended by eligible Member Lending Institutions (MLIs). The coverage under the CGS-I scheme has been increased from Rs. 200 lakhs to Rs. 500 lakhs per borrower
The revised modifications will be applicable for all guarantees approved on or after April 01, 2023, including enhancement in the working capital of existing covered accounts. All other terms and conditions of the scheme shall remain unchanged.
The increase in the ceiling of coverage under the CGS-I scheme is a significant development that will benefit micro and small enterprises. It will enable these enterprises to access higher credit facilities without any collateral, thereby promoting entrepreneurship and creating employment opportunities. The CGTMSE scheme has been instrumental in supporting the growth of MSEs in India, and this modification will further strengthen its impact on the economy.
To be eligible for the CGTMSE scheme, the enterprise should have a good track record and creditworthiness. It should also have a viable project report, which is evaluated by the lending institution. The scheme is not available to enterprises engaged in speculative or illegal activities.
The premium for the guarantee covered under the CGTMSE scheme is borne by the borrower, and it varies according to the amount of the loan and the tenure of the loan. The premium rates are lower for women entrepreneurs and for enterprises located in the North-Eastern Region and the hilly states.
In conclusion, the CGTMSE scheme is a significant initiative by the Government of India to support the growth of SMEs in the country. By providing collateral-free credit and guarantee cover, the scheme has made it easier for SMEs to obtain loans from banks and financial institutions. The scheme has contributed significantly to the development of the SME sector and has played a vital role in promoting economic growth and employment generation in the country.
The Organization of the Petroleum Exporting Countries, commonly referred to as OPEC is a group of 13 countries that are major producers of crude oil. These countries are Algeria, Angola, Congo, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, Venezuela, and Gabon.
OPEC was formed in 1960 with the aim of coordinating and unifying the petroleum policies of its member countries to secure fair and stable prices for petroleum producers and ensure a regular supply for consumers. Since then, OPEC has played a significant role in shaping the global oil market.
One of the most powerful tools at OPEC’s disposal is the ability to cut oil production. When OPEC reduces its oil production, it leads to a reduction in the global oil supply. This reduction in supply, in turn, leads to an increase in oil prices, as the market tries to balance the supply and demand equation.
The impact of OPEC’s production cuts worldwide can be seen in several ways:
Oil Prices:
Whenever OPEC reduces output, the amount of oil available globally declines. In turn, this causes the price of oil to rise. The cost of other commodities like petrol, diesel, and heating oil is impacted by rising oil prices. As the price of producing these goods rises as a result of increasing oil prices, their prices may also increase.
Inflation:
Excessive oil prices might cause inflation in other economic sectors as well. Inflation can result when the price of products and services rises due to greater production costs brought on by rising oil prices.
Global Economic Growth:
Higher oil prices can also have a negative impact on global economic growth. When oil prices rise, it increases the cost of transportation and manufacturing, which can reduce economic activity and slow down economic growth.
Stock Market:
OPEC’s production cuts can also impact the stock market. Companies that produce and distribute oil, such as ExxonMobil and Royal Dutch Shell, can see their stock prices rise when oil prices increase due to OPEC’s production cuts.
Currency Market:
When OPEC cuts the supply of oil, it can lead to an increase in oil prices in the global market. Since oil is priced in US dollars, an increase in oil prices can lead to an increase in demand for US dollars. This is because countries that import oil, including the United States, will need to purchase more US dollars to pay for their increased oil imports.
Impact on Indian Currency:
When OPEC cuts the oil supply, it can lead to an increase in oil prices, which can impact the Indian currency against the US dollar. This is because India is one of the largest importers of crude oil, and a rise in oil prices can increase the country’s import bill, leading to an increase in the demand for US dollars. As a result, the value of the Indian currency against the US dollar may decrease when OPEC cuts its oil supply. This can make imports more expensive for India, leading to inflationary pressure on the economy.
What distinguishes OPEC and OPEC+ from one another?
Organizations active in the international oil market include OPEC and OPEC+. But there are some significant variations between the two.
The 13 nations that together make OPEC are the world’s top producers of crude oil.
OPEC+ is a group of oil-producing countries that includes 13 OPEC member countries plus 10 non-OPEC countries, including Russia, Mexico, and Kazakhstan. The formation of OPEC+ was a response to the global oil market’s changing dynamics and the increasing influence of non-OPEC oil-producing countries. The primary objective of OPEC+ is to coordinate oil production levels among its member countries to stabilize oil prices and reduce volatility in the global oil market.
The key difference between OPEC and OPEC+ is that OPEC is composed only of the 13 OPEC member countries, while OPEC+ includes both OPEC member countries and non-OPEC countries. The formation of OPEC+ has allowed OPEC to work more closely with non-OPEC countries to better manage global oil supply and demand dynamics. OPEC+ has also allowed non-OPEC countries to participate in the decision-making process, which has led to a more inclusive and coordinated approach to managing the global oil market.
The Indian government has recently introduced the Foreign Trade Policy 2023-28 (FTP 2023-28) to promote exports and boost economic growth. One of the key highlights of this policy is the introduction of a special one-time Amnesty Scheme to address default on Export Obligations for EPCG and Advance Authorizations.
Export Promotion Capital Goods (EPCG) and Advance Authorizations are schemes that allow Indian exporters to import goods without paying customs duties, provided they fulfill certain export obligations. However, in some cases, exporters may default on their obligations due to various reasons, such as lack of demand, supply chain disruptions, or other business challenges.
The government has implemented a one-time Amnesty Program under the FTP 2023 to address this problem. This program is designed to help exporters who have struggled to fulfill their responsibilities under Advance Authorizations and EPCG and who are suffering from the high customs and interest charges brought on by pending cases.
This plan allows for the regularisation of all open cases of failure to complete the Export Obligation (EO) of the aforementioned authorizations in exchange for the payment of all duties and taxes that were previously exempted in proportion to the outstanding Export Obligation. Under this arrangement, the maximum amount of interest that can be paid is 100% of the exempted duties.
The amount of Added Customs Duty and Special Additional Customs Charge, on the other hand, is exempt from interest payment, which is expected to be a comfort to exporters as their interest costs will be significantly reduced.
The government’s “Vivaad se Vishwaas” campaign, which aimed to resolve tax problems amicably, is consistent with this amnesty program. The government wants to lessen litigation and promote trust-based partnerships to help exporters with their problems by giving defaulting exporters a second chance.
Under this amnesty, it is intended that these exporters will get a second chance and a chance to comply. By increasing exports and lowering the amount of outstanding litigation, this strategy will not only help the defaulting exporters but also the broader economy.
To boost the export industry and encourage ease of doing business, the Indian government’s one-time Amnesty Program for Export Obligations under FTP 2023 is a commendable effort. Defaulting exporters can benefit from this program to resolve their outstanding problems and reopen their businesses without having to pay exorbitant duty and interest fees.
FDI is a procedure whereby the citizen of one nation buys the right to manage the production and other operations of an organization in another (host country).
Regarding FDI
Foreign Direct Investment (FDI) is the word used to describe the transfer of money in the kind of long-term investments from one nation to another. It takes place when an investor creates a long-term position in a foreign company by purchasing a controlling interest or starting a new venture. Developing nations like India rely on FDI to expand and flourish because it delivers not only finance but also technology, managerial know-how, and access to new markets.
For instance, the USA will make investments in the Indian company while India serves as the home country. Therefore, FDI refers to an American company investing in an Indian business.
Kinds of FDI
Horizontal FDI: In this type of FDI, money is invested internationally in the same sector. In other words, a business may invest in a foreign firm that manufactures comparable goods. For example, a US board company, Nike, might buy Puma, a firm with headquarters in Germany.
Vertical FDI: an organization invests in a foreign company that it might sell to or supply as part of a supply chain, rather than immediately in the same industry.
Conglomerate FDI: With this sort of FDI, a purchase is undertaken in a completely unrelated sector of the economy. It has no immediate connection to the investor’s company. For example, a US store might buy stock in the German automaker BMW.
How can an Indian company receive foreign investment?
For FDI to enter India, there are two entrance points: the Automatic Route and the Government Route.
Automatic method: Under this method, investments in shares of equity, entirely and obligatory converted bonds, or completely and obligatory converted preferred stock of an Indian company do not need the government of India’s consent.
Governmental Route: Foreign investments in particular industries and endeavors must receive prior government authorization in India. The relevant Administrative Ministry/Department evaluates proposals. If an Indian firm with foreign investment has been founded and isn’t controlled or owned by a local entity, government authorization is required.
b. By fusion, merger, demerger, or acquisition, control of an existing Indian firm that is controlled or owned by resident Indian people or Indian companies is being given to a non-resident entity.
c. The ownership of an existing Indian company, owned or controlled by resident Indian citizens or Indian companies, is being transferred to a non-resident entity through amalgamation, merger, demerger, or acquisition.
The entities which can invite FDI in India:
Indian Companies: They can issue capital against FDI.
Partnership Firms/Proprietary Concerns: NRIs can invest under certain conditions, while other non-residents need prior approval from the Reserve Bank. Certain restrictions apply to investments in agricultural, plantation, real estate, and print media businesses.
Trusts: FDI is not permitted, except in Venture Capital Funds (VCF) regulated by SEBI and ‘Investment vehicles’.
Limited Liability Partnerships (LLPs): Foreign investment is allowed under specific conditions and compliance with the LLP Act, 2008.
Investment Vehicles: Entities regulated by SEBI or other designated authorities, including REITs, InvITs, and AIFs, are permitted to receive foreign investment subject to specific terms and conditions.
Startup Companies: Startups can issue equity, equity-linked instruments, debt instruments, or convertible notes to foreign investors, subject to certain conditions and regulations.
Prohibited Sectors for FDI in India
While the Indian government has liberalized its FDI to encourage foreign investment in most sectors, there are certain areas where investments by non-residents are prohibited. These include:
Lottery businesses, including government/private lottery and online lotteries.
Gambling and betting activities, such as casinos.
Cheque money.
Nidhi businesses.
Transferable development rights (TDRs) trading.
Farmhouse construction or real estate businesses. This restriction does not apply to the development of townships, the building of homes or businesses, the building of roads or bridges, or the creation of Real Estate Investment Trusts (REITs) that are registered and subject to regulation by the SEBI (REITs) Regulations, 2014.
Manufacturing tobacco goods, such as cigars, pipes, cheroots, cigarillos, and nicotine replacement products.
Sectors or activities that are off-limits to investments from the private sector, such as the railway industry and atomic energy.
Any type of foreign technological partnership, including franchising, trademark, brand name, or management contract licensing in connection with lotteries, gaming, or betting operations.
Documents required for FDI approval in India:
Certificate of incorporation
Memorandum of Association(MOA)
Board Resolution
Audited financial statement of last financial year
Article of association
Importance of FDI in India
Economic growth: FDI is a vital source of capital for India’s economic growth. It supplements domestic capital, enables infrastructure development, and fuels industrialization.
Employment generation: FDI helps create job opportunities by establishing new businesses, expanding existing ones, and increasing production capacities.
Technological advancement: FDI brings state-of-the-art technology and expertise, promoting innovation and competitiveness in the Indian market.
Access to global markets: FDI allows Indian businesses to integrate with global supply chains, fostering the export of goods and services.
Balance of payments: FDI inflows help improve India’s balance of payments, strengthening the country’s foreign exchange reserves.
FDI policy 2020:
As of April 2020, the government has received over 120 FDI proposals worth Rs. 12000 crore from China. India received the highest-ever total FDI inflow of $ 81.72 billion during the financial year 2020-2021 and it is 10% higher as compared to the last financial year 2019-2020 worth US$ 74.39 billion.
Holding and subsidiary company:
Holding company:-A company that purchases 51% of shares that company is known as a holding company (host country)
The subsidiary company:-A company that sales its shares as its shares are purchased by another company is called the subsidiary company
Two ways of FDI:
Foreign companies purchase shares or debentures of the Indian company and invest in the Indian company
The foreign company comes to India and establishes its own company in India
Examples of FDI in India:
Google picked up 7.73% of Reliance’s JIO platform for USD 4.5 Billion it is one of the biggest deals in India’s corporate fundraising session.
General Atlantic, one of New York’s most equity USD 900 million for a picket in reliance’s JIO platform in JUNE 2020.
The following rules apply to the issuing and exchange of shares under the FDI policy:
Capital instruments must be issued 60 days after the inward remittance is received. The money shall be returned within 15 days following the 60-day period if they are not issued within that time limit. Non-compliance results in a violation of FEMA, which is punishable.
The issue price for shares should follow certain rules:
a. SEBI’s rules for listed businesses
b. A fair valuation for unlisted companies by a Chartered Accountant or Merchant Banker registered with SEBI.
c. The Reserve Bank of India pricing rules for preferred allocation
3. Following RBI regulations, Indian enterprises that are permitted to distribute shares to outsiders may keep the subscription money in an overseas bank account.
4. Shares and convertible debt transfers:
General approval is provided for the transfer of shares, subject to particular criteria and requirements, and non-resident investors may invest in Indian enterprises by purchasing/acquiring existing shares, according to the FDI sectoral policy.
The AD Category-I Bank must receive Form FC-TRS following sixty days of the date of the transfer of funds or receipt/remittance of monies, whichever comes first.
Sale consideration must undergo a KYC check by the remittance receiving AD Category-I bank.
Non-resident investors, including NRIs, who hold control by SEBI regulations, can acquire shares of a listed Indian company on the stock exchange.
Escrow accounts can be opened and maintained by AD Category-I banks without prior RBI approval, subject to terms and conditions.
Deferred payment for share transfer between resident and non-resident is allowed up to 25% of total consideration, not exceeding 18 months from the transfer agreement date. Escrow arrangements or indemnity provisions can be made within these limits. The total consideration must comply with applicable pricing guidelines.
Remittance and restoration of sales profits guidelines:
Remittance of sale proceeds, remittance upon winding up, and company liquidation:
Are governed by FEMA’s 2000 Foreign Exchange Management (Remittance of Assets) Regulations.
Provided the security has been held on a repatriation basis, the sale complies with established rules, and a NOC/tax clearance certificate from the Income Tax Department is produced, AD Category-I banks may permit the transfer of sale proceeds to sellers who reside outside of India.
Remittance on winding up/liquidation of companies is allowed by AD Category-I banks, subject to payment of applicable taxes and submission of required documents, including a tax clearance certificate, auditor’s certificates, and confirmation of no pending legal proceedings.
Dividend repatriation is allowed without restriction (net of any appropriate tax deductions made at the source or payment of dividend taxes).
Interest repatriation is unrestricted (net of any applicable taxes) for completely, mandatorily, and compulsorily convertible debentures.
The Interest Equalization Scheme was first announced on 1st April 2015 by the Government of India to provide pre- and post-shipment Rupee export credit to eligible exporters. It is also known as interest subvention. A rebate of interest is provided to exporters on RPC/EPC and FBILL limits. Under this scheme, exporters can claim a reimbursement from the Reserve Bank of India.
Qualification for the Interest Equalization Program
To benefit from this program, the exporter must make the goods by the definition of “manufacture” under the FTP. The following exporters are eligible for the Interest Equalization Scheme:
Exporters of goods from manufacturers who come under the designated 416 four-digit tariff line.
All exporters of Micro, Small, and Medium-Sized Enterprises (MSMEs);
Merchant exporters who fall under the defined 416 four-digit tariff line;
All exporters of Micro, Small, and Medium-Sized Enterprises (MSMEs) and Merchant Exporters who come under the defined 416 four-digit tariff lines have been included in this program as of January 2, 2019.
Note: This program does not apply to merchant exporters outside the 416 tariff lines.
Benefits of Interest Equalization Scheme for export credit
Provide international identification to the export sectors.
Helps in increasing export competition
Provide pre-and post-shipment export credit to exporters at a lower rate to the eligible exporters
Enhance export performance
Help exporters by providing credit to grow their business which results in increased exports.
Rate of Interest Equalization
The scheme’s initial implementation, which lasted for five years starting on April 1, 2015, used an equalization rate of 3% annually. The Scheme may be changed or amended at any moment by the Government.
The Indian government agreed to raise the interest equalization rate between 3% to 5% on November 2, 2018.
The Indian government agreed to add merchant exporters as well on January 2, 2019. They are eligible for interest equalization at a rate of 3% on credit for the export of goods covered by the 416 tariff lines designated under the Interest Equalisation Scheme for Pre- and Post-Shipment Rupee Export Credit, which is still in effect.
The circular states that the Indian government has prolonged the Interest Equalisation Scheme from April 1, 2020, through March 31, 2021, with identical scope and coverage.
By RBI Circular No. 2021-22/21 dated April 12, 2021, the Government of India has extended the Interest Equalisation Scheme for pre- and post-shipment Rupee export credit for three more months, or till June 30, 2021, with the same scope and coverage.
According to RBI Circular No. RBI/2021-22/65, issued July 1, 2021, the Indian government has prolonged the Interest Equalisation Scheme for an additional three months, up to September 30, 2021, with unchanged scope and coverage.
According to Circular No. RBI/2021-22/180 dated 08.03.2022, the Government of India granted the extension of the Interest Equalisation Scheme for Pre- and Post-Shipment Rupee Exports The credit is through March 31, 2024, or until further review, whichever is earlier. However, the interest subvention has been reduced from 5% to 3%. The additional period begins on the first of October 2021 and lasts until March 31, 2024.
Below is a list of the most recent changes the Government has made to the Scheme.
The “Telecom Instruments” sector, which has six HS lines1, would not be able to use the Scheme, except for MSME manufacturer exporters.
Beneficiaries who are receiving benefits under another government Production Linked Incentive (PLI) program are not eligible for the expanded Scheme.
Between October 1, 2021, and March 31, 2022, banks must identify the eligible exporters by the Scheme, credit the accounts with the allowable amount of interest equalisation, and submit an industry-specific consolidated reimbursement claim to the Reserve Bank by 30 April 2022.
Beginning on April 1 of 2022, banks must cut the interest rate they charge eligible exporters ahead of the regulations and submit the original claims within 15 days of the end of the relevant month, stamped with the bank’s seal and verified by an authorised individual, in the format specified.
After excluding 6 HS lines in the telecom sector, the prevailing interest subvention rate is 3% for MSME manufacturer exporters exporting under any HS lines and 2% for manufacturer and merchant exporters exporting under 410 HS lines.
Most significantly, to qualify for upfront interest subvention beginning on April 1, 2022, every exporter must get a UIN from the DGFT and submit it to their banks.
The recently launched digital IT module for the Interest Equalisation Scheme’s UIN/UDIN generation process involves:
Effective 01.04.2022, a Unique IES (Interest Equalisation scheme) Identification Number (UIN) must be provided to the relevant bank to receive Interest Equalisation against pre- and post-shipment rupee export credit applications.
Steps for applying UDIN
First, register on the DGFT Website https://dgft.gov.in. The applicant IEC is linked to its online account, IEC (ANF-2A) and Exporter-Importer Profile (ANF-1) is updated to reflect the correct and latest details.
Login with registered credentials navigate to services > Interest Equalization Scheme> apply for Interest Equalization Scheme and fill in the required details.
Rs.200 is to be paid online for UIN.
An acknowledgement containing UIN would be auto-generated when the completed application is submitted online.
An SMS and email intimation of UIN will be sent to a registered email account and mobile number of the exporter.
After UIN generation, no changes will be allowed. The exporter has to generate a new UIN for correcting the application.
Exporter has to submit UIN to their concerned bank for getting the benefit of IES.
UIN has a validity of 1 year from the date of registration it is valid on all pre- and post-shipment credits availed till 31.03.2023.
