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FIEO submits 9-point demand charter to RBI, ECGC
New Delhi, June 29: Apex exporters body FIEO has submitted a nine point charter of demands to RBI seeking increased export credit, concessional finance and waiver of stamp duty on export bills.
New Delhi, June 29: Apex exporters body FIEO has submitted a nine point charter of demands to RBI seeking increased export credit, concessional finance and waiver of stamp duty on export bills.
In a memorandum submitted to RBI deputy governor, the Federation of Indian Exporters Organisation has asked the government to ensure concessional rate for export finance for 360 days.
The memorandum was submitted by FIEO vice president Subash Mittal along with O P Garg, FIEO managing committee member and Ganesh Kumar, FIEO chairman (western region) to Vepa Kamesam, deputy governor, RBI. Pointing out that as the status holders a period of 360 days had been allowed for realisation of export proceeds, FIEO vice president Subhash Mittal said that banks too should be directed to allow them a repatriation time of 360 days as per RBI norms, charging a concessional rate of interest for the entire 360-day period.
Mittal said banks should also charge interest on term loans on the same basis as they charge interest on packing credit and added that there was also a need for them to not charge any stamp duty on export bills as it did not have any legal sanctity in foreign land in case of dispute. Mittal, who also met K C Chaudhary, chief executive, Indian Banking Association, P M A Hakeem, chairman Exports Credit Guarantee Corporation, B Y Olkar, chief executive officer, Foreign Exchange Dealers Association of India to submit the memorandum said no penal rate of interest should be charged for non-realisation of export proceeds in case of exports covered by ECGC insurance package.
FIEO has also asked that it should be allowed to exercise the option on coverage of political risk in transactions, which were without letter of credit in cases where commercial risk cover is not offered by ECGC.
Stating that renewal of credit limits after a period of one year posed unnecessary pressure on exporters, Mittal said banks should give the limits for three years.
He said exporters should also be given packing credit in foreign currency and added that this be done at a "soft rate" for exporters. Bureau Report
The memorandum was submitted by FIEO vice president Subash Mittal along with O P Garg, FIEO managing committee member and Ganesh Kumar, FIEO chairman (western region) to Vepa Kamesam, deputy governor, RBI. Pointing out that as the status holders a period of 360 days had been allowed for realisation of export proceeds, FIEO vice president Subhash Mittal said that banks too should be directed to allow them a repatriation time of 360 days as per RBI norms, charging a concessional rate of interest for the entire 360-day period.
Mittal said banks should also charge interest on term loans on the same basis as they charge interest on packing credit and added that there was also a need for them to not charge any stamp duty on export bills as it did not have any legal sanctity in foreign land in case of dispute. Mittal, who also met K C Chaudhary, chief executive, Indian Banking Association, P M A Hakeem, chairman Exports Credit Guarantee Corporation, B Y Olkar, chief executive officer, Foreign Exchange Dealers Association of India to submit the memorandum said no penal rate of interest should be charged for non-realisation of export proceeds in case of exports covered by ECGC insurance package.
FIEO has also asked that it should be allowed to exercise the option on coverage of political risk in transactions, which were without letter of credit in cases where commercial risk cover is not offered by ECGC.
Stating that renewal of credit limits after a period of one year posed unnecessary pressure on exporters, Mittal said banks should give the limits for three years.
He said exporters should also be given packing credit in foreign currency and added that this be done at a "soft rate" for exporters. Bureau Report