Home / Knowledge / News / Apparel/Garments / TEA advises banks to keep overdue receivables in suspense account
TEA advises banks to keep overdue receivables in suspense account
07
Jan '09
Shri. A.Sakthivel, President, FIEO and also President of TEA, today mentioned that he has submitted a memorandum to Union Commerce Minister Shri. Kamalnath with a requisition to advise the banks to keep the overdue receivables from derivative contract in a suspense account without deducting interest rates.

Shri. Sakthivel said that many exporters, including knitwear garment exporters in Tirupur have lost substantially in derivatives products offered by financial institutions at a time when exporters hedged their risk in the wake of appreciation of Rupee against dollar.

The Small and Medium Enterprises (SMEs) loss itself in the country is over Rs 2000 crore and the Derivative products as a whole were miss sold by banks to all SME sector by utilizing the adverse situations and ignorance of the customers. Shri. A. Sakthivel stated Banks also violated all the stipulated norms and procedures of RBI's guidelines & rules.

Shri. A. Sakthivel informed that the Parliamentary Committee has already included all the all the affected exporters in detail and also RBI and added that subsequently RBI issued a circulars vide letters dated 13th October 2008 and 29th October 2008 to all the involved banks that all the derivative bookings happened in the period of “April 2007-June2008” and their proceeds either loss or profit should be maintained in a suspense account without deducting the interest rates. It should not be taken into consideration to paralyze the other funding if this particular dues exceeds the stipulated 90 days period.

Shri. A. Sakthivel pointed out that the Banks have to be instructed to solve this issue on the basis of “no-profit no-loss” basis wherein the clients would be made to pay back whatever the profit accrued by them through this derivative product and further the banks should not claim any loss out of it. This could be made valid for those contracts entered between April 2007 & June 2008.

Tirupur Exporters' Association

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search