Exporters on Tuesday asked the Reserve Bank of India to set up a fund to ensure more dollar loans to small and medium enterprises (SMEs) in the sector.
They also want banks to permit advance payment by Iranian buyers of Indian goods, as it provides guarantee to Indian exporters.
In a pre-credit policy discussion with the RBI, Mr Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO), raised issues affecting credit flow to exports, including the rising cost of credit.
Referring to the requirement of dollar loans by SMEs in the export sector and their limited availability, Mr Ahmed asked the RBI to set up a fund commensurate with the requirements of SMEs.
On the ‘Rupee Payment Mechanism' for exports to Iran, he said, “Advance payment ensures commitment of the buyer and provides the required cushion and guarantee to Indian exporters.”