Who provides guarantee to exporters in India?

Q.  Which organization provides guarantee to the exporters?
- Published on 16 Feb 17

a. Exim Bank
b. Export Credit Guarantee Corporation
c. Reserve Bank of India
d. Registrar of companies

ANSWER: Export Credit Guarantee Corporation
 
On 30 July 1957, the ECGC Limited was established with an objective to provide insurance cover in respect of risks in export trade.

It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce.

Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957.

It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.

Functions of ECGC
  • Provides a range of credit risk insurance covers to exporters against loss in export of goods and services as well.
  • Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.
  • Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan and advances.
ECGC - Export Credit Guarantee Corporation

Founded : July 30, 1957
Headquarters : Mumbai, Maharashtra
Current Head : Mrs. Geetha Muralidhar (Chairman & MD)

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