DEA FLAYS NEW RBI CREDIT POLICY
Delhi Exporters Association (DEA) has
demanded zero percent interest on export credit among other
demands from the new RBI credit policy. Citing the case of
Pakistan which has waived export credit interest recently DEA
said the Government, to encourage exports, should not charge
interest on exporters.
According to DEA president, S. P. Agarwal, India has the world's
highest interest rates on export credit - both packing credit
and post-shipment. DEA expressed disappointment over the new
RBI credit policy as there was nothing for exporters in it
and demanded that export credit should be given instantly across
the table on production of letter of credit or confirmed export
order.
The Delhi exproters suggested that they should be allowed to
retain 50 per ent of foreign exchange earned. At present,
exporters are allowed to keep 25 per cent of foreign exchange
earned under export earners foreign currency (EEFC) account. On
the interest payable by banks on EEFC account and delayed
payment to the exporters, the DEA president said the banks
should give interest with retrospective effect as per the RBI
directions.
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