On a day when the rupee hit a fresh all time low, the RBI met exporters and bankers to seek ways to speed up credit flow to the sector.
Exporters today asked RBI to remove some of the recent controlswhereby exporters have to convert into rupees 50% of their earnings in the EEFC accounts.
They have also asked for lower rates on pre-shipment credit, reports CNBC-TV18.
M Rafeeque Ahmed, president, FIEO, says that rebooking of the forward exchange. We have told RBI that contracts are not practical. RBI should try 25% of the forward contract to be rebooked.
“We have told the RBI that every company should rebook 25% of the turnover. Secondly, the RBI said that we cannot keep more than 50% in our EEFC account; it will automatically get credited into rupee terms. We argued that this is not practical in sectors like gem and jewellery, petroleum, plastics and other sector where import content is higher than 50%,” says Ahmed.
(curtsey : money control)
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