Forex & International Banking

Foreign exchange, trade finance, export/import, and NRI banking.

Forex Trade Finance Export Import NRI Banking FEMA

Articles

Forex MT 110 Explained: Advice of Cheque

Why a bank tells the drawee bank about a cheque before it is ever presented, and what the message contains.

15 Aug 2026 · 2 min read Import Importing into India: Bill of Entry and Customs Clearance Basics

Getting goods through Indian customs starts with filing a Bill of Entry. Here is what that document covers and how the clearance process generally flows.

14 Aug 2026 · 2 min read Forex MT 104 Explained: Direct Debit and Request for Debit Transfer

How a bank collects funds from multiple payer accounts under standing mandates, bundled into a single SWIFT message.

14 Aug 2026 · 2 min read Forex MT 102 Explained: Multiple Customer Credit Transfer

How banks bundle many individual customer payments — like a payroll run — into one efficient SWIFT message.

13 Aug 2026 · 2 min read Forex MT 101 Explained: Request for Transfer

How a corporate treasury centralises payment instructions across multiple banks and accounts using a single MT 101 request.

12 Aug 2026 · 2 min read Forex MT 103 Explained: Every Field in a SWIFT Customer Credit Transfer

A field-by-field walkthrough of MT 103, the SWIFT message that carries an international wire transfer — what 32A, 50a, 57a, 59a, 71A, and every other field actually mean.

11 Aug 2026 · 4 min read Trade Finance MT 700 Explained: Every Field in a SWIFT Documentary Credit Message

A field-by-field walkthrough of MT 700, the SWIFT message that opens a Letter of Credit — what 40A, 41a, 42C, 46A, 48, and every other field actually mean.

11 Aug 2026 · 6 min read

Frequently Asked Questions

Yes. The LRS ceiling is an annual limit tied to the financial year (April–March) and resets at the start of each new financial year.

A mismatch is called a "discrepancy." The issuing bank can refuse payment until the discrepancy is corrected or the buyer waives it, so exporters should check documents carefully before presentation.

No. NRE accounts are meant for foreign income only. Income earned in India, such as rent or salary, should go into an NRO account.

Yes, IEC registration itself does not expire, though DGFT has introduced a requirement to periodically confirm/update IEC details online to keep it active.

A business generally needs a valid IEC to import commercially. Beyond that, some goods are freely importable while others need a specific licence or are subject to restrictions under the current Foreign Trade Policy.

Yes — FEMA governs all cross-border foreign exchange transactions by residents and non-residents in India, though many routine transactions are freely permitted within prescribed limits and reporting requirements.

Each resident individual, including minors (through a guardian), has their own separate LRS limit, so family members can each remit up to their individual ceiling.

No. An LC is a primary payment mechanism used to settle a trade, while a Bank Guarantee is a secondary commitment that is only invoked if the applicant fails to perform an obligation.

Not completely — NRIs can repatriate funds from an NRO account up to a specified limit per financial year, subject to applicable tax compliance and RBI/FEMA conditions.

Both refund embedded costs on exports, but they cover different components — drawback traditionally refunds customs duties on inputs, while RoDTEP was introduced to cover a broader range of previously non-refunded taxes and levies. Check current DGFT notifications for exact scope and rates.

HSN (Harmonized System of Nomenclature) is the international classification code for goods, and it determines the applicable customs duty rate and any product-specific regulatory requirements — accurate classification is essential to avoid clearance delays or penalties.

FEMA, enacted in 1999, replaced the older Foreign Exchange Regulation Act (FERA). The shift moved India's foreign exchange framework from a criminal-law-oriented, restrictive regime toward a civil, management-oriented approach aligned with economic liberalisation.