News

RBI GOVERNOR SHRI SHAKTIKANTA DAS DISCONTINUES THE AUTOMATIC CAUTION-LISTING OF EXPORTERS

RBI GOVERNOR SHRI SHAKTIKANTA DAS DISCONTINUES THE AUTOMATIC CAUTION-LISTING OF EXPORTERS

RBI Governor Shri Shaktikanta Das has accepted the request to stop the automatic caution-listing as it will provide flexibility to exporters in realization of their export proceeds.

The RBI introduced Export Data Processing and Monitoring System (EDPMS) in 2014 for all banks to bring their transactions with the exporters online.

In 2016, it launched the system-based automatic caution-listing wherein exporters were put on RBI’s caution list if any shipping bill against them remained open for more than two years in EDPMS and there was no extension granted by the bank or RBI.

Besides, the authorized dealer (AD) banks also recommended names of exporters to be put on caution list.

“The automatic listing of exporters in RBI’s caution list can further worsen the plight of exporters by denying them packing credit and the delay in bank documents can lead to high demur-rage charges and this is certainly a great move,” Dr Sakthivel, Chairman, AEPC.

lectra

Welcoming RBI’s Monetary Policy Statement 2020-21 and Statement on Developmental and Regulatory Policies,

the Chairman said that the apparel exporters appreciated the bank’s intent to enhance liquidity support for financial markets so as to revive activity in targeted sectors of the economy with linkages to other sectors, provide boost to exports,

regulatory support to improve the flow of credit to specific sectors within the ambit of the norms for credit discipline, and to deepen financial inclusion.

Related posts

Ima S.p.a. defying tough times via offering cutting machines to manufacture medical textiles

Durst Restructuers Textile Printing Business

Perfect Sourcing Newsdesk

Intex South Asia 2018 curtains with 18% surge in buyer footfall

Leave a Comment