New Delhi, Oct 9 (UNI) The Apparel Export Promotion Council (AEPC) on Friday thanked Reserve Bank of India (RBI) Governor Shaktikanta Das for discontinuing the automatic caution-listing of exporters saying it had become a threat since the outbreak of coronavirus.
”I sincerely thank RBI Governor Shri Shaktikanta Das for accepting our request to stop the automatic caution-listing as it will provide flexibility to exporters in realization of their export proceeds. Considering the pandemic-related payment difficulties, its continuation was a threat to many exporters,” Chairman Dr A Sakthivel said.
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.
”I particularly thank you for the changes in the EDPMS making it more exporter friendly and equitable, wherein it has been decided to discontinue the Automatic Caution-listing and instead base it on the case-specific recommendations of the AD bank,” he said in a letter to the RBI Governor.
”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 demurrage charges,” Dr Sakthivel said.
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.
”I am positive that these measures will help in mitigating the suffering of the apparel exporting industry and the millions of our workers, for which we are indeed obliged,” he added.