Commodity Businesses

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Commodity Businesses

More About Commodity Businesses

Please note the following Penal fees & charges applicable based on the instance. This is also communicated in our offer/ sanction letter.

Sr. No. Instance Charges per instance
1 Late payment penal charge/s on delayed payment of EMI(s) Up to 2% p.m. penal charge (from date of default to regularisation) – computed in absolute terms + relevant GST will be applicable on the outstanding EMI amount(s) per month on a cumulative basis.
2 Delay in submission of documents for disbursement or renewal of facilities on time Up to 2% p.m. penal charge (from date of overdue to regularisation) – computed in absolute terms + relevant GST will be applicable on the sum of limits of revolving lines and or principal outstanding of non-revolving lines.

Not applicable on ODFD, 100% FD backed facility/ies, PSR & DRUL lines.
3 Delay in submission of Letter Acknowledging their Debt (LAD) Up to 2% p.m. penal charge (from date of overdue to regularisation) – computed in absolute terms + relevant GST will be applicable on the sum of limits of revolving lines and or principal outstanding of non-revolving lines.
4 Non-compliance/ Breach of facility covenants Up to 2% p.m. penal charge (from date of default to regularisation) – computed in absolute terms + relevant GST will be applicable on the sum of limits of revolving lines and or principal outstanding of non-revolving lines.
5 Non-submission or delay in submission of Insurance for Property/ Stock/ Plant & Machinery held as collateral for facilities. Up to 2% p.m. penal charge (from date of policy expiry to regularisation) – computed in absolute terms + relevant GST will be applicable on the sum of limits of revolving lines and or principal outstanding of non-revolving lines.

Not applicable on ODFD, 100% FD backed facility/ies, PSR, DRUL and or lines where the said collateral is not pertinent.
6 Non-submission or delay in submission of Stock Statement(s) Up to Rs. 5,000/- + relevant GST per delayed submission. If the submission isn’t received within 15 days from the submission due date, the Bank will drop the drawing power on the facilities.

Not applicable on ODFD, 100% FD backed facility/ies, PSR, DRUL & Non-DP backed lines.
7 Incremental Interest on Temporary Overdrafts (TOD) Up to 1.5% p.m. + relevant GST computed in absolute terms on the TOD amount availed for the days, TOD is used.

Commodity businesses stand to benefit in several ways. They can provide e-broking services to customers through convenient payment gateways, enhancing accessibility and convenience. Real-time access to account information allows for better financial management and decision-making. Additionally, by improving the efficiency of payments and disbursements, commodity businesses can streamline operations, reduce costs, and enhance overall financial performance. These benefits contribute to the competitiveness and sustainability of commodity businesses services in the market.

To apply for HDFC Bank commodity businesses, visit the HDFC Bank website at https://www.hdfcbank.com/wholesale/financial-institutions-and-trusts/commodity-businesses. On the webpage, you will find information about the application process and the services offered. Follow the instructions provided to complete the application process. Ensure you have all the necessary documents and information required for the application. Once submitted, your application will be processed, and you will be notified of the outcome. Applying for HDFC Bank commodity businesses through the website is quick and convenient, offering you access to a range of financial services tailored to meet the needs of commodity traders.

Participants eligible for HDFC Bank's commodity business services include individuals and entities involved in the commodity trading value chain. This encompasses a wide range of stakeholders such as traders, producers, manufacturers, and distributors of commodities. Additionally, investors and financial institutions looking to engage in commodity trading can also benefit from HDFC Bank's services. As the clearing bank for India's major commodity exchanges, HDFC Bank provides tailored finance and banking solutions to meet the diverse needs of participants in the commodity trading ecosystem. This eligibility criteria ensures that all entities involved in commodity trading can access the necessary financial services to support their operations.

Frequently Asked Questions

A Commodity business, trader, or company is one which operate much like logistics companies, leveraging financial markets to fund their operations and mitigate price risks. These traders are responsible for the transportation and transformation of commodities globally. They utilise various financial instruments to hedge against market volatility, ensuring price stability and minimising potential losses. By doing so, they enable the efficient movement of goods, from raw materials to finished products, across different regions. Commodity traders play a crucial role in the supply chain, bridging the gap between producers and consumers while managing the complexities of international trade and market fluctuations. Their expertise in logistics and financial strategies ensures a smooth and cost-effective flow of commodities worldwide.

Commodities are tangible products with commercial value that can be traded, including buying, selling, producing, or consuming. Examples of commodities include agricultural products, metals, and energy resources. Domestic regulated Commodity Exchanges provide standardised commodity contracts, allowing investors to trade these assets efficiently. These exchanges offer a platform where traders can diversify their investment portfolios and manage risks through hedging strategies. By participating in these markets, individuals and businesses can protect themselves against price fluctuations and secure more stable financial outcomes. The structured environment of Commodity Exchanges ensures transparency and reliability in trading, making commodities an essential part of the global economic landscape.

HDFC Bank plays a crucial role in supporting commodity businesses services as the clearing bank for India’s major commodity exchanges. This position enables HDFC Bank to provide a wide range of financial and banking services tailored to meet the needs of participants in the commodity trading value chain. These services are designed to facilitate seamless transactions and ensure the smooth functioning of commodity trading operations. HDFC Bank's clearing bank status for exchanges such as NCDEX, MCX, and NMCE underscores its commitment to supporting the growth and success of commodity businesses in India.