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.