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Gold Card Scheme for exporters: Objectives, eligibility and benefits

The Gold Card Scheme offers numerous credit benefits to eligible exporters through a particular issuance bank. In this blog, find out its eligibility, process and benefits.

Exports have been a key contributing factor to India’s growing economy. To further boost international trade, the Government of India, along with other supporting entities, has continued to introduce various schemes, incentives and campaigns to support exporters and empower them financially. The Reserve Bank of India takes active measures to reduce procedural hassles and offer financial assistance to exporters to help them avail competitive interest rates. The Gold Card Scheme was launched by RBI and the Ministry of Commerce and Industry to facilitate easier access to bank credit, especially for small and medium exporters.

What is the Gold Card Scheme?

Whenever a bank offers credit to an exporter, the exporter must return the credit within a particular timeline, which helps maintain credit record with the bank. The bank maintains these records and considers them while determining whether an exporter is worthy of receiving further credit. Based on the credit history and records of exporters, the Gold Card Scheme offers plenty of benefits to traders. The benefits include low interest rates, quick credit processes, internet banking and national and internal debit/credit card¹.

Objectives of the Gold Card Scheme for exporters

Below are some of the objectives of the Gold Card Scheme²:

• The scheme offers better credit terms, lower interest rates and a faster and hassle-free credit approval process to exporters than other programs
• The scheme’s beneficiaries will be prioritized for the Packing Credit Grant in Foreign Currency (PCFC) program – pre-shipment finance that helps exporters export goods at internationally competitive rates.
• Gold cardholders will be considered for issuance of foreign currency credit cards to make urgent international payment obligations based on accurate and timely fulfillment of export bills.
• Cardholders enjoy a low fee structure and process charges on services provided by the bank as compared to other exporters who do not hold the Gold Scheme Card.

Eligibility criteria for issuing a Gold Card

Following are some of the eligibility criteria for the Gold Card Scheme³:
• Good credit history as required by respective banks
• Exporters with accounts classified as ‘standard assets’ for three years and exhibit no adverse features or irregularities in account conduct
• Not blacklisted by Export Credit Guarantee Corporation of India (ECGC) or on defaulter list of RBI
• Small and medium exporters who satisfy basic terms and conditions

Features and benefits of the Gold Card Scheme

Following are some of the benefits for exporters under the Gold Card Scheme⁴:

Increased business loan limits

The bank offers increased business limits based on projected export turnover. The bank sanctions the in-principle limit for the tenure of three years with the facility to automatically renew if terms and conditions of the loan are fulfilled.

Term loans in foreign currency from FCNR account

The bank offers preference to the holders of the Gold Scheme Card to receive term loans in foreign currency out of the Foreign Currency Non-Resident Account (FCNR) funds. They will also enjoy concessions in the interest through a sophisticated and transparent system.

Lower processing charges

The cardholders enjoy lower processing charges than other exporters.

Reduced processing time for proposals

All the proposals submitted by the Gold cardholders will be processed with high priority over other proposals. Here are the time limits for processing the proposals from Gold cardholders:
• 25 days for fresh proposals
• 15 days for renewals
• 7 days of ad-hoc limits

The Gold Card Scheme is undoubtedly a revolutionary scheme for exports. Eligible exporters can enjoy numerous benefits from issuing banks. With schemes like this and e-commerce exports programs like Amazon Global Selling, exporting from India has become simpler and easier than before.

Easy e-commerce exports with Amazon
Global Selling

Owing to access to technology, the internet has been the major driving force behind the evolution of international trade. E-commerce has eased the ability of businesses to import and export products around the world.

Indian exporters too are increasingly opting for e-commerce exports to sell internationally. Providing access to 18+ global marketplaces across the globe, Amazon Global Selling makes the export process easy and hassle-free. Warehousing, compliance, shipping, delivery and returns – Amazon Global Selling assists you in every step to help you run a successful export business.

Guide to export with Amazon

More blogs on export schemes

1. A guide to the Export Oriented Units (EOUs) scheme and process to avail its benefits

2. Understanding export incentives in India: What are the benefits for exporters?

3. How to register for the Market Access Initiative (MAI) scheme?

4. What is the NIRVIK scheme for exporters?

5. All you need to know about Interest Equalisation Scheme and its benefits

6. All you need to know about the Transport and Marketing Assistance Scheme (TMA Scheme)

7. RoSCTL scheme: Benefits, eligibility and application procedure

8. What is Duty Entitlement Passbook (DEPB) Scheme for exporters?

9. Advance Authorisation Scheme: How does it help exporters?

10. What is Export Promotion Capital Goods Scheme (EPCG)?

11. What is Duty Drawback in export: Meaning, types and process

12. Understanding the benefits of RoDTEP scheme: A guide for Indian exporters

13. What is Authorized Economic Operator (AEO) Programme: How to register and obtain AEO certificate?

Frequently Asked Questions

For how long is the gold card issued?

The scheme is sanctioned for three years, while fulfilling the terms and conditions in the sanction can automatically renew the tenure.

Who will issue the gold card?

Issuance banks can offer gold card to eligible exporters.

Published on October 20, 2022.

Sources:
1. https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=1639&Mode=0
2. https://rbidocs.rbi.org.in/rdocs/notification/PDFs/53671.pdf
3. https://www.indiafilings.com/learn/gold-card-scheme-exporters/
4. https://www.icicibank.com/ebor/commercial-banking/exporters-gold-card/index.html#:~:text=To%20boost%20exports%20by%20offering,small%20and%20medium%20sector%20exporters.&text=Exporters%20with%20credit%20worthiness%20and%20good%20track%20record.
5. https://sbi.co.in/web/business/sme/sbi-exporters-gold-card-scheme

What is an Importer of Record (IOR)?

Guide on how to export from India