🏢 Wholesale Banking
🧠 What is it?
Banking for big businesses, corporates, MNCs, PSUs, large institutions.
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🏦 Key Features:
Feature Description
Client Type Corporates, large traders, PSUs, MNCs
Credit Size Large-value transactions
Customization Tailor-made services
Relationship-based Dedicated account managers/teams
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🧾 Products in Wholesale Banking:
1. Fund-Based Products (Bank provides actual funds):
Product Use
Term Loans Capital expenditures (plant, land)
Working Capital Loans Daily operating needs
Bill Discounting Early payment for trade bills
Export Credit For exporters to manage operations
2. Non-Fund-Based Products (No immediate outflow of funds):
Product Use
Bank Guarantee (BG) Bank promises to pay if client defaults
Letter of Credit (LC) Guarantees payment in international trade
3. Value-Added Services:
Cash Management
Corporate Salary Accounts
Forex Desk
RTGS Services
Syndication Services
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🌍 International Banking
📘 What is it?
Banking services for cross-border trade & foreign exchange needs.
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🧾 Services to Exporters:
Service Description
Export Packing Credit Pre-shipment finance
Export Bill Discounting/Negotiation Post-shipment credit
LC Advising/Confirmation Bank verifies or guarantees LC
Suppliers' Credit Indian exporters extend credit to foreign buyers
Bank Guarantees (Foreign) Securing export contracts
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🧾 Services to Importers:
Service Description
Import LC Guarantees payment to overseas supplier
Import Collection Bills Bank collects payment on importer’s behalf
Foreign Currency Loans Loans in USD, EUR etc.
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💱 Forex Role of Banks:
Offer currency conversion
Manage forex risk (hedging)
Operate under FEMA rules
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❓ MCQs to Test Yourself:
1. A Letter of Credit is an example of:
a) Fund-based finance
b) Non-fund-based finance ✅
c) Forex swap
d) Fixed deposit
2. Wholesale banking is primarily meant for:
a) Retail customers
b) Co-operative societies
c) Government offices
d) Large business clients ✅
3. Export Packing Credit is given for:
a) After shipment
b) Buying land
c) Pre-shipment financing ✅
d) Personal use
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✅ Task for Today:
Look at any LC or Bank Guarantee issued in your branch.
Match it with what you’ve learned today.
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