BANKING AFFAIRS

Detailed explanation-1: -The ECGC Ltd. (formerly known as Export Credit Guarantee Corporation of India Ltd.) wholly owned by government of India, was set up in 1957 with the objective of promoting exports from the country by providing credit risk insurance and related services for exports.

Detailed explanation-2: -It is under the ownership of Ministry of Commerce and Industry, Government of India, and is headquartered in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and banks.

Detailed explanation-3: -The first policy was issued on 14th October, 1957. The initial name was changed to Export Credit Guarantee Corporation of India Ltd. in the year 1983. It was in the year 2014 in August, that it was renamed as ECGC Ltd.

Detailed explanation-4: -ECGC – An Export Promotion Institution : Provides credit risk covers to Exporters against non payment risks of the overseas buyers / buyer’s country in respect of the exports made. Provides credit Insurance covers to banks against lending risks of exporters. Assessment of buyers for the purpose of underwriting.

Detailed explanation-5: -(a) Transfer Guarantee: Transfer Guarantee Scheme is provided to safeguard banks in India against losses arising out of confirmation of letter of credit (L/C). It covers losses due to political risks up to 90% and losses due to commercial risks up to 75%.