Small and Medium Enterprises’ Awareness Regarding Export Credit Delivery System

Reserve Bank of India (RBI) is a regulating authority for commercial banks. It takes care that consumer interest is not ignored in the greed of making profits by commercial banks. Hence, from time-to-time, it issues guidelines in the form of master circulars to commercial banks on various issues. Commercial banks are required to offer a number of financing products to exporters to meet their varying needs as per RBI guidelines. Exporters can get their finance in Indian rupee or in foreign currency as per their requirements. But as commercial banks are there to make profits, they may not be interested in exporters’ awareness of the products giving lesser profits to the banks. Therefore, in the present study, an effort has been made to analyze the awareness level of small and medium enterprises (SMEs) exporters regarding various forms of export finance issued by commercial banks. Findings revealed a low level of awareness regarding various export financing products among SME exporters. Moreover commercial banks are not implementing RBI guidelines regarding export credit.