The current level of Rs. 5 crore and above for consortium
emthod of lending may be raised to Rs. 10 crore and above, which will enable many
exporters to get their limits expeditiously sanctioned from their bankers
Banks should dispose the applications for loans within a
period of one month in case of non-consortium lending and within 45 daysin the case of
consortium lending
Export credit should be considered part of priority
sector advances
Rediscounting of export bils abroad should be permitted
by RBI
Pre-shipment credit in foreign currency at competitive
rates for domestic value of export items be permitted by RBI
The increase in cut-off limit may be considered by RBI
for application of Method II under Tandon/Chore Committees to borrowers who enjoyed
working capital limit of Rs. 1 crore and above from the banking system from the existing
limit of Rs. 50 lakhs, provided the export was at least 25 per cent of the turnover
Lowering of interest rate on export credit to single
digit rate
Withdrawal of interest tax on export credit and
Provision of incentives to banks to ensure smooth flow of
export credit.
