EXPERT CREDIT GUARANTEE CORPORATION OF INDIA (ECGC) : AN OVERVIEW
Essential for All Upcoming Bank Exams
- On 30th July, 1957, Export Credit Guarantee Corporation of India Limited (ECGC Limited) was established.
- It is wholly owned by Government of India.
- It is headquartered in Mumbai, Maharashtra, India.
- It is regulated by the Ministry of Commerce and it also deliver export credit insurance support to Indian exporters.
- The Indian government first established the Export Risk Insurance Corporation (ERIC) in July 1957.
- Without fear of losses, the exporters were able to expand their foreign business.
- It operates under the administrative control of the Ministry of Commerce and Industry and is governed by a board of directors, representing the government, the Reserve Bank of India, the banking, and the insurance and exporting communities.
- Shri T C Kapur was the First Managing Director of the Corporation and Shri Ratilal M Gandhi was the First Chairman of ECGC.
History of ECGC:
- In 1947, the need for introduction of export was immediately started.
- In a meeting of the Export Advisory Council, it was proposed to introduce export credit guarantee scheme in 1953.
- In 1955, the Ministry of Commerce and Industry analyzes the competition and depth of the Export Credit Insurance Plan and a revised draft proposal is presented to the Export Advisory Council.
- On July 30, 1957, the government accepted the recommendation of the Kapoor Committee and thus registered with Export Recycle Insurance Corp. (ERIC), Mumbai, as a Private Limited.
- October 14, 1957, Union Commerce Minister Shri Morarji Desai inaugurated the first policy of ERIC was issued.
- In the year 1964, the name of ERIC was changed to Export Credit and Guarantee Corporation Limited.
- In August 2014, it was named Export Credit and Guaranty Corporation Limited (ECGC Limited).
- In terms of profits, financial and operational efficiency indicators, to achieve improved performance and to get the best return on investment.
- In order to protect Indian exporters against unexpected losses, which may be facing the problems of buyers, banks or buyers, the cost-effective credit insurance can be equally equal in the form of policies, factoring and investment insurance services. Available cover for exporters in other countries.
- Employees develop world-class skills in credit insurance and ensure continuous innovation and achieve top customer satisfaction by providing top quality services.
- For encouraging and facilitating the globalization of India's trade.
- To educate customers through continuous promotion and effective marketing.
- Providing assured insurance cover for bankers at a competitive rate to facilitate adequate bank financing to Indian exporters.
- Providing timely information on the needs of buyers, bankers and the country, to assist Indian exporters in managing their credit risk.
- In the form of equity or debt and progress, joint venture overseas, the investor is giving foreign investment insurance to Indian companies.
- Enables banks and financial institutions to develop their quality better.
- Contrary to losses in the export of goods and services, the credit risk insurance cover is provided to the exporters.
- Provides information from different countries with its own credit rating.
- Export financing from banks / financial institutions makes it easy.
- Provider’s insurance protection against payment risk is available.
- Helps the exporters to recover bad debts.
- Manage export related activities.