Exporters to go to DGFT
Rajesh Exports chairman Rajesh Mehta says his firm is also facing a problem with regard to dollar loans. Banks don’t have dollars and are increasingly asking borrowers to take rupee loans. “We deal with eight to nine banks. The problem is more acute in smaller banks,” says Mr Mehta. If at all banks give dollar loans they are demanding a kind of service charge which is over and above the interest ceiling. This is against RBI norms. Mr Vohra says exporters plan to raise the issue with the Directorate General of Foreign Trade (DGFT). If an exporter is bringing the proceeds in dollar, then credit should be made available in dollars. He feels that nationalised banks should find a way to give foreign currency loans to exporters, who have already taken a huge blow on their margins because of the appreciating rupee. Nonavailability of cheap dollar loans will only add to the exporters’ blues