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Money > Business Headlines > Report October 16, 2001 |
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Credit policy should stimulate investments, exports: PHDCCIThe PHD Chamber of Commerce and Industry on Tuesday stressed that the coming RBI Credit Policy, 2001-02 should aim at generating demand, increasing exports, encouraging new investment, particularly in the infrastructure sector and enhancing resource flow to productive projects. The RBI credit policy has assumed considerable significance in the wake of low growth rate and worsening international situation, the chamber said. In a note to RBI, PHDCCI suggested reduction of bank rate by one per cent and CRR (cash reserve ratio) by one percentage point, special financial package for SSI (small scale industries) by banks to meet WTO (World Trade Organisation) challenges and obligations and softening of interest rate on export finance in rupees at one per cent above libor. It said the RBI should advise banks not to charge penal interest for delays in payment and ECGC (Export Credit Gurantee Corporation) premia on pre-shipment finance which works out to about one per cent be borne by banks. The suggestions also include increase in transit period for air shipment and sea shipment to 25 and 75 days respectively, determination of bank lending rates on the basis of technical assessment of the risks than on customers' perception, provision of adequate finance by banks to retail and wholesale trade, flexible lending norms to software and IT sector without collaterals or guarantees and securities and making EEFC account fully convertible. PHDCCI further suggested that SIDBI (Small Industries Development Bank of India) credit guarantee fund scheme for small industries should be introduced under which eligible borrower can obtain loan upto Rs 2.5 million without collateral securities, suitable mechanism be evolved to provide adequate finance to builders to boost construction activity and the present non performing assets norms be relaxed and compromise settlement scheme be extended for another one year. UNI |
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