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The PHD Chamber of Commerce and Industry (PHDCCI) has submitted several recommendations on issues related to the housing sector, banking and foreign trade to RBI Governor Shaktikanta Das. Amidst global economic challenges and ongoing pandemic impact, it made a strong case for lowering housing sector interest rates to stimulate growth. It said lower rates can invigorate investments, bolster consumption, enhance competitiveness, and aid industries facing headwinds.

The chamber highlighted several issues related to the banking sector, including the rectification of export realisation purpose codes and the protection of GST input benefits. It also called for permission to acquire existing units/companies in India using rupee loans, similar to overseas acquisitions. It said at present, a bank loan in Indian rupee is not permitted for the acquisition of any existing unit/ company in India, whereas the same is available for acquiring any unit/ company outside India.

Its recommendations on foreign trade include recovery of foreign bank charges from export proceeds, and liberalising pre-shipment credit in foreign currency (PCFC). The chamber also recommended that the 90 days limit fixed by RBI for classifying over dues of MSMEs should be increased to 180 days so that they are not constrained to divert their working capital towards servicing their loan instalments and clearing their over dues at the cost of their normal business operations.