Friday, December 15, 2017 New York : London: India: Tokyo:

STRATEGIES FOR ACHIEVING REDUCTION IN NON-INTEREST EXPENSES

This is one area which provides a great scope to corporates for reduction in bank charges/fees/commission etc and the discretion available to Banks is to be exploited.

For the purpose of focusing on cost reduction on non-fund based facilities, we need to classify the exposures as short-term and long-term as per particulars below.

Short-term

1) Import LCs

2) Negotiation/discount/purchase of export Bills

3) Exchange margin payable

4) LC retirement charges

5) Other bank charges

Long-term

1) Guarantee –performance and financial

2) Deferred Payment Guarantee(DPG)

3) Letter of Comfort(LOC)/Letter of undertaking(LUT)

We shall suggest to the companies of the potential savings involved in negotiation of charges with Banks.

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