Date:11/11/2005 URL: http://www.thehindubusinessline.com/2005/11/11/stories/2005111101160600.htm

Back Banks not to charge fee from exporters

Our Bureau

New Delhi , Nov 10

IN a move to accord relief to exporters, commercial banks will shortly discontinue charging processing fees while extending credit to exporters.

The central bank will issue guidelines to the effect soon, said Mr Shree Kumaran, Incharge of Export Finance Division of RBI.

While addressing an Interactive Session on Export Finance, organised by the Associated Chambers of Commerce and Industry (Assocham) here on Thursday, Mr Kumaran also said the RBI is finalising guidelines for commercial banks so that exporters can have easy access to foreign currency loans.

The Export Finance Division of the RBI has already recommended these measures to higher authorities of the RBI, which have favourably agreed with these measures. An official communication to this effect will be sent to all commercial banks within 10 days, Mr Kumaran said.

In his welcome address, the Assocham President, Mr Anil K Agarwal, said exporters should be given easier credit on reasonable bank rates.