Please
refer to BPRD Circular No. 44 dated December 17, 1998 containing
revised instructions on the captioned Scheme.
2.
It has been brought to our notice that requests from the Direct
Exporters for opening of inland letter of credit (ILC) in
favour of the Indirect Exporters for supply of domestic inputs
are not being entertained by some of the banks. As the revised
instructions on the captioned Scheme envisage provision of
financing to Indirect Exporters through the mechanism of ILC,
the financing banks are advised to open ILCs within the limits
of the Direct Exporters approved by them under Part-I and
Part-II of the Scheme, so as to enable them to make use of
the revised system efficiently and without any hindrance.
3.
The banks are also advised to ensure that charges for opening
of ILC are kept at the minimum.
Please acknowledge receipt.
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