Types of Facilities for Exports

a) Rupee Export Credit (pre-shipment and post-shipment):

UCO provides both pre and post shipment credit to the Indian exporters through Rupee Denominated
Loans as well as foreign currency loans in India. Credit facilities are sanctioned to exporters who satisfy
credit exposure norms of UCO. Exporters having firm export orders or confirmed L/C from a bank are
eligible to avail the export credit facilities.
Rupee Export Credit is available generally for a period of 180 days from the date of first disbursement. In
deserving cases extension may be permitted within the guidelines of RBI. The corporates may also book
forward contracts with UCO in respect of future export credit drawls, if required, as per the
guidelines/directives provided by RBI.

b) Pre-shipment Credit in Foreign Currency (PCFC):

UCO offers PCFC in the foreign currency to the exporters enabling them to fund their procurement,
manufacturing/processing and packing requirements. These loans are available at very competitive
international interest rates covering the cost of both domestic as well as import content of the exports.
The corporates/exporters with a good track record can avail a running account facility with UCO for
PCFC. PCFC is generally available for a period of 180 days from date of first disbursement. In deserving
cases extension may be permitted within the guidelines of RBI.

Features:

(The forward covers can be booked in respect of future PCFC drawls.)

In the PCFC drawls permitted in a foreign currency other than the currency of export, exporter bears the
risk in currency fluctuations. The foreign currency drawls are restricted to major currencies at present. In
case, the export order is in a non-designated currency, PCFC is given in US$. For orders in Euro, Pound
Sterling and JPY, PCFC can be availed in the respective currencies or US$ at the choice of exporter.

Multi-currency drawls against the same order, are not permitted at present due to operational
inconvenience.

Repayment:

PCFC is to be repaid with the proceeds of the export bill submitted after shipment.In case of cancellation
of export order, the PCFC can be closed by selling equivalent amount of foreign exchange at TT selling
rate prevalent on the date of liquidation.
The PCFC in foreign currency are granted at our various branches through our Integrated Treasury
Branch in Mumbai.

c) Negotiation of Bills under L/C

UCO's Authorised Forex Branches are active in negotiation/discounting of sight/usance international
export bills under L/Cs opened by foreign banks as well as branches of Indian banks abroad. UCO offers
the most competitive rates. These transactions are undertaken by our branches within the
Bank/Country Exposure ceilings prescribed by UCO.

d) Export Bill Rediscounting:

UCO provides financing of export by way of discounting of export bills, as a post shipment finance to the
exporters at competitive international rate of interest. This facility is available in four currencies i.e. US$,
Pound Sterling, Euro and JPY.
The export bills (both Sight and Usance) drawn in compliance of FEMA can be purchased/ discounted.
Exporters can avail this facility from UCO to cover the bills drawn under L/C as well as other export bills.

e) Bank Guarantees:

UCO, on behalf of exporter constituents, issues guarantees in favour of beneficiaries abroad. The
guarantees may be Performance and Financial. For Indian exporters, guarantees are issued in
compliance to RBI guidelines.

4. FINANCE/SERVICES TO IMPORTERS

a) Collection of Import Bills:

UCO has correspondent relationship with reputed International Banks throughout the world and can
thus provide valuable services to importers who may be importing from any part of the Globe. The
import bills are collected by our Authorised Forex Branches at very competitive rates. The import bills
drawn on customers of other branches are also collected through these branches.

b) Letter of Credit:

On account of UCO's presence in international market for decades, UCO has established itself as a well
known international bank. L/Cs of UCO are well accepted in the International market. For any special
requirement UCO can get the L/C confirmed by the top international banks.

Thus UCO's L/C facility for the purchase of goods/services etc. fulfills the requirements of all importers
to arrange a reliable supply. UCO offers this facility to importers in India within the ambit of FEMA and
Exim policy of Govt. of India. UCO uses state of the art SWIFT network to transmit L/Cs and with a
worldwide network of correspondents and our overseas branches facilitates prompt & efficient services
to the importers.
L/C facility is granted to the importers on satisfying credit exposure norms of the Bank.
c) Financing of import
Usance L/C facility

UCO's Usance L/C facility provides the importer an opportunity to avail credit from their
supplier/supplier's bank.

Deferred Payment Guarantee/Standby LC

UCO's Deferred Payment Guarantee/Standby LC facility also provides the importer an opportunity to
avail credit from their supplier/supplier's bank.

Rupee finance

UCO also offers to Indian importers Rupee finance for payment of goods and services imported from
abroad under its various Rupee credit facilities on satisfying credit exposure norms of the Bank.

Foreign Currency Loans

Short term External Commercial Borrowings or Trade Credits for less than three years as permitted by
RBI for imports into India is allowed by our overseas branches to Indian importers at very competitive
rates. These are generally backed by L/Cs opened by importer's bank. Indian importers can also avail this
facility from our overseas branches as roll-over credit on their bank agreeing to extend the L/C in favour
of our overseas branches.

d) Bank Guarantees:

UCO, on behalf of importer constituents or other customers, issues guarantees in favour of beneficiaries
abroad. The guarantees may be both Performance and Financial.

5. REMITTANCES

UCO, through its worldwide network of correspondents, Indian branches and overseas branches, offers
prompt inward and outward foreign remittance facilities at very competitive rates. The use of SWIFT
network adds to reliability and efficient handling.
The remittances are handled by our Authorised Forex Branches. The outward remittances of customers
of other branches are also remitted through these branches. Through our well-spread network of
branches in India, inward remittances reach every nook & corner in India. UCO has tie-up arrangements
with Western Union Money Transfer.

6. FOREX & TREASURY SERVICES

UCO operates in the Forex Market in India as well as abroad. In India the inter-bank forex operations is
centralized at our Integrated Treasury Branch in Mumbai, country's undisputed financial hub. UCO's
Authorised Forex Branches undertake customer transactions. The forex requirements of customers of
other branches are also routed through these branches. Overseas branches undertake the forex treasury
operations in Singapore and Hong Kong centre.

All the forex treasuries are equipped with state of art technology and professionally skilled staff to
handle forex treasury operations efficiently.

UCO deals in all the important international currencies. Our Forex Treasuries generally undertake the
following treasury related activities:-
Forex Inter Bank Placements/Borrowings
Sale & Purchase of currency on behalf of customers
Forward Cover Bookings
Cross Currency Swaps
Interest Rate Swaps (IRS)
Forward Rate Arrangements (FRAs)
Forex Money Market Operations

Forex Services For Corporates

To improve the standard of service to the valued clientele, UCO has integrated its Forex and Domestic
Treasury Operations under one roof in Mumbai. UCO's Forex Inter-bank desk at Treasury Branch is an
active market player. UCO's Integrated operations at one place in Mumbai enables it to participate in
inter-bank transactions on a large scale. Forex Dealing Rooms in Singapore and Hong Kong and a
worldwide network of correspondents add to UCO's strength in providing the best forex corporate
services.
Authorised Forex Branches spread across the country cater to needs of all customer in foreign exchange.
Corporate Forex Services include Foreign Currency Sale & Purchase, Forward Booking, Cross Currency
Forward etc. Other products like Collection & Negotiation of Export & Import Bills under LC, LC Issuance,
Advising & Confirmation Services, Arrangement of Trader Credits, the guarantees on behalf of Indian
Corporate/Projects, EEFC Accounts, Remittance etc. are all available to corporate customers from UCO.
UCO is establishing a Derivative Desk in India to offer various Derivative Products, such as IRS, FRA,
Cross-currency Options, Currency Swaps with Cross-currency Interest Rate Swap etc. With this UCO will
also offer structured products suitable for Corporates who have large receivables or payment obligation
in foreign currencies. Derivative Desk will deal in hedging products to hedge the market risks i.e. interest
rate risk and foreign exchange risk in Bank's balance sheet.

7. RESIDENT FOREIGN CURRENCY (DOMESTIC) A/Cs

UCO also offers Resident individuals in India, the facility to open non-interest bearing current account in
foreign currency at the selected Indian branches as permitted by RBI. Joint accounts with a resident
eligible to open RFC (D) account is permissible. Nomination facility is also permitted.
Thus UCO will provide an option to resident individuals to retain their receipts from abroad in foreign
currency as permitted by RBI.

8. CORRESPONDENT BANKING SERVICES

The extensive network of branches in India and presence in two important international centres enables
UCO to offer correspondent banking services to the banks.
The Authorised Forex Branches in India as well as our overseas branches are capable of providing the
services that an international correspondent Bank can offer.

UCO can provide the following main services:-

Collection of bills both Documentary and Clean.

Advising/confirming of L/Cs opened by banks
Discounting of Bills drawn under L/Cs
Maintanence of foreign currency accounts in S$ and HK$
Maintanence of Rupee accounts in India
Making foreign currency payments/remittance on behalf of customers of banks.
UCO's excellent service with competitive charges provide a good Correspondent Banking solution.
UCO's overseas branches are active in discounting of usance international trade bills. With foreign
currency resources of overseas branches, UCO offers the most competitive rates for discounting of these
bills. The bills under the L/Cs of the most of the Indian Banks as well as International Banks are also
discounted at competitive rates. These transactions are undertaken by them within the Bank/Country
Exposure ceilings prescribed by UCO.

EXTERNAL COMMERCIAL BORROWING (ECB)

The foreign currency loans to the Indian corporate are granted by UCO's overseas branches. The
borrowings raised by the Indian corporate from specified banking sources outside India are termed
"External Commercial Borrowings" (ECBs). These ECBs can be raised within the Policy guidelines of Govt.
of India/Reserve Bank of India, as applicable from time to time. ECB includes the following:-

Commercial LoansSyndicated Loans

Floating/Fixed rate notes and bonds
Lines of Credit from foreign banks and financial institutions
Import loans, loans from the export credit agencies of other countries.

UCO is very active in granting and arranging various forms of ECB facilities for the Indian Corporate. UCO
can offer following services to the Indian corporates in respect of cross border financing :-
Arranging/granting External Commercial Borrowings by way of Foreign Currency Loans, FRNs, Bonds for
the Indian corporates.
Arranging/underwriting International Syndicated Loans for the Indian corporates.
Participating in the International Loan Syndications.
Granting loans backed by Export Credit Agencies.
Providing import finance for Indian Corporates.
Issue of Guarantees such as Bids, Bonds, Performance, Advance Payment etc. for the overseas projects
bagged by the Indian Corporates