Bhopal (Madhya Pradesh): The Federation of Madhya Pradesh Chamber of Commerce and Industries met with exporters across the state here on Saturday to address the operational challenges they are facing in coordinating with banks.
Exporters in the state have raised concerns over coordination with the Reserve Bank of India, other banks and the Directorate General of Foreign Trade (DGFT).
This has resulted in ongoing cases not being closed, thus affecting their future business. The president of the federation, RS Goswami, made a presentation on the problems of exporters.
Buyers from countries with poor banking systems make payments to Indian exporters in different currencies, either through personal or partner accounts, which are not recognized by banks. Banks do not issue BRCs and do not close the case where countries in the war zone pay through interconnected countries like the United Arab Emirates and Jordan.
The amount of the charge and payment varies as transaction fees are deducted and customs officials mark the order as an anomaly. This leads to several bottlenecks for exporters despite payment difference as low as US$10-100.
Banks don’t close, offer relief when exporters have to send free samples to buyers despite high transfer fees.
Exporters face huge losses, goods are damaged, lost due to rate change, due to regulatory challenges or government restrictions.
Despite presenting the documents, the exporters are forced to pay penalties every time due to the negligence of the banks. Goswami said the issues would soon be taken up with the government.
MoU with Dearn Insurance
Federation President RS Goswami and Dearn Insurance Director Nilesh Jain have signed a memorandum of understanding, under which the latter will provide various types of insurance to member industries of the federation at reasonable rates. FMCCI member industries will provide insurance company member discounts. The Federation also launched a revamped website and brochure during the event.
(To receive our daily E-paper on WhatsApp, please Click here. To receive it on Telegram, please Click here. We allow the PDF of the document to be shared on WhatsApp and other social media platforms.)