RBI committee to review facilities to exporters

The Reserve Bank of India (RBI) has set up a technical committee under the chairmanship of G Padmanabhan, executive director in the central bank, to look into the challenges faced by exporters, including availability of credit and transaction costs.

The committee would have representation from Export-Import Bank of India, Export Credit Guarantee Corporation and industry bodies such as Federation of Indian Export Organisations, Indian Banks’ Association and Foreign Exchange Dealers Association of India, RBI said.

It added the committee had been set up to review existing policies and procedures relating to bank finance for exports. It would suggest steps to ensure timely, adequate and hassle-free flow of credit towards working capital, capital expenditure and other requirements, especially for small and medium enterprises. The committee would consider alternative sources of funding for exporters, assess the efficacy of the schemes and facilities of entities such as Exim Bank and ECGC and, if required, suggest changes. It would also look at the needs of exporting units located in special economic zones and suggest risk-mitigation measures for exporters, RBI said. The committee, which has been asked to give its report by April, has invited suggestions from stakeholders by February-end.