Individual Packing Credit – (INPC)
EXPORT CREDIT INSURANCE PACKING CREDIT
Packing credit cover can be obtained by the bank that provides advances/credit facilities to the exporters for the purposes of manufacturing, processing, purchasing and/ or packing of goods granted by banks to exporters who enter into contracts for export of services or undertaking construction works abroad. The cover provides protection to the banks against losses suffered on account of nonpayment of advances/credit facilities due to insolvency and/ or default of the borrower exporter.
Period Of Cover:
All packing credit advances as per RBI guidelines.
Against losses that may be incurred in extending packing credit advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover:
0.12% on the highest amount outstanding on any day during the month.
75% of the Packing Credit Limit sanctioned to the account being covered
Important Obligation Of The Bank:
Obtain cover for each project separately. Maintain advance deposit equivalent to one month’s premium. Submission of monthly declaration of advances granted and repayments made in the account and payment of due premium on or before 10th of the succeeding month. Approval of the Corporation for extension of due date. Default to be reported within 4 months from due date or extended due date of advances. If not recovered, filing of claim within 6 months of the Report of Default. Recovery action after payment of claim and sharing of recovery.