It
has been observed that in increasing number of cases, the
banks retain the amount of refinance obtained from State Bank
under the Export Finance Scheme as deposits in their books
on account of the exporters. Needless to say that this practice
defeats the very purpose for which the Scheme was instituted
i.e. to provide concessionary credit for boosting the exports
and is, therefore, viewed seriously.
2.
Banks are, therefore, advised to immediately adjust the amount
of refinance in such cases by liquidating the deposits created
out of such refinance and repay the same to the State Bank
within three working days. They are further advised not to
create fresh remunerative deposits out of the funds lent under
the Export Finance Scheme . Any violation of the above directives
shall disqualify the bank from availing any refinance facility
from the State Bank.
Please acknowledge receipt.
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