BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Finance extended to packing materials industry
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Finance extended to an Importer to pack the goods imported
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Finance extended to Warehouses for keeping the goods packages
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Finance extended to an Exporter to meet the costs of buying and/or making products to be exported
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Detailed explanation-1: -Packing Credit can be extended to merchant/manufacturing exporters for the period of his operating cycle subject to maximum of 180 days.
Detailed explanation-2: -Significance of Packing Credit The export packing credit facility supports the exporter’s supply chain and provides funds to bridge the gap until the receipt of final payment from the customer.
Detailed explanation-3: -In order to avail packing credit facility, exporter has to submit formal application along with the necessary documentary proof. Exporter is sanctioned a regular packing credit limit based on the assessment of the bank in respect of the credit needs of the exporter.
Detailed explanation-4: -1 Meaning: Pre-Shipment finance refers to the credit extended to the exporters prior to the shipment of goods for the execution of the export order. Post-Shipment Finance Post-shipment finance refers to the credit extended to the exporters after the shipment of goods for meeting working capital requirement. 2.