What changed
RBI observed that some states have not formed the Sub-Committee for Export Promotion under SLBC, or meetings are not held regularly as per existing guidelines. This circular reiterates the requirement from the September 2004 directive and asks convenor banks to set up the sub-committee if not already done and hold meetings at prescribed intervals.
What it means for you
Banks must ensure the Sub-Committee is operational to discuss and resolve exporters' problems related to export finance and banking. Regular meetings will help state-level coordination and timely representation of export sector issues. Non-compliance may lead to regulatory scrutiny.
What you must do
- Form the Sub-Committee for Export Promotion under SLBC if not already constituted.
- Schedule and hold meetings at the prescribed intervals as per the 2004 circular.
- Communicate meeting dates well in advance to all concerned members to ensure full representation.
- Acknowledge receipt of this circular to RBI.
Who it affects
SLBC Convenor Banks, UTLBC Convenor Banks, Commercial banks involved in export finance, Exporters and export finance departments
What is the purpose of this Sub-Committee?
To discuss and resolve exporters' problems related to export finance and other bank-related issues at the state level.
What happens if the Sub-Committee is not formed or meetings are not held?
RBI has observed non-compliance in some states and is now reiterating the requirement. Continued non-compliance may lead to regulatory action.