RBI sets up monitoring group of bankers

MUMBAI, MAR 3: The Reserve Bank of India (RBI) today announced setting up of a six-member monitoring group of bankers' to closely track ...

MUMBAI, MAR 3: The Reserve Bank of India (RBI) today announced setting up of a six-member monitoring group of bankers’ to closely track implementation of its revamped scheme for sanctioning of export credit by banks in foreign currency to exporters.

The group is also meant to sort out any operational problem that might arise in making foreign currency credit facilities available to exporters liberally, more particularly small and medium scale exporters. The revamped scheme unveiled on February 28, 1999 provides for the rate of interest to be directly linked to London Inter-Bank Offered Rate (Libor) and that export credit will be need-based and not directly related to collateral security.

The group, having as convener M G Srivastava, chief general manager of RBI’s Industrial and Export Credit Department, would be responsible for monitoring implementation of the scheme and ensure that the system is in place at all centres, more particularly centres with concentration of small and medium exporters.

Themonitoring group has as members State Bank of India chief general manager Harbans Lal, Canara Bank general manager AKS Rao, Bank of India general manager R N Buch, ANZ Grindlays Bank’s director and head (international services) Soumen Basu and Vysya Bank adviser K R V Bhat.

The group is mandated to visit and interact with bankers and exporters/exporters’ bodies to sort out the problems/impediments faced by exporters especially small and medium exporters, in availing of foreign currency credit and to set up a procedure for attending to exporters’ difficulties expeditiously.

The group would also review periodically the working of the scheme and submit their findings to the standing committee on export finance (SCEF) chaired by RBI deputy governor, for further action, RBI said in a statement here.

The other important features of the revamped scheme are making available a line of credit for a period of up to three years on the basis of exporter’s track record, flexibility with regard to the method ofassessment of credit requirements and disbursement of credit on the basis of a statement of orders in hand. On approval by a consortium, submission of original sale contract/order would not be insisted upon under the revised scheme for handling export documents unless required as per letter of credit terms.