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FIEO seeks govt, RBI intervention in resolving exporters' banking issues

FIEO seeks govt, RBI intervention in resolving exporters banking issues

New Delhi: Exporters body FIEO has sought immediate intervention of the government and RBI to resolve issues related to payment mechanism for Iran and flow of credit to push shipments.

Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said that a clarity is required on product coverage under rupee payment mechanism to Iran. "Exporters have pointed out that UCO bank branches are not clear about products, which can be exported under such mechanism. The main problem is related to Engineering and Chemical products," Gupta said.He said that the understanding of trade is that if the end use of product is not under the sanctioned list, or exports is not to the Iranian government, it should be allowed for exports under the Rupee Trade Mechanism."A clarification will help exporters to take such orders and push for quantum jump in our exports to Iran," he said.

He also said that banks have expressed their inability to handle documents of exporters for shipments to Central Asian countries, if there is a reference to Bandar Abbas as a transit port in Iran. "This has affected the movement of cargo through INSTC which Government of India is promoting as an alternative route being time and cost effective," he said.

It is requested that directives to banks be issued for handling of documents properly for transit goods through Iran, where the combined transport bill of landing shows the destination to be Afghanistan/Russia/ Central Asia or any other non-restricted countries, he said.

PTI

PTI

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