07 June 2008
The bank itself extend you the packing credit ,which is part of export credit ,only for procuring goods for export purpose.
The bank will question your use of PC funds other than export purpose, where,if found not used for export, the bank will charge interest at the normal domestic rate. The consequences does not end here. The aftermath of such a situation The bank would be extra catious on extending you facilities and will closely watch the usage of bank's funds for the intended purpose it was extended to you.
CAclubindia
