THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) to (f): A Statement is laid on the Table of the House.
(a), (b) & (c): Reserve Bank of India (RBI) has issued guidelines for
financing Film Production to all commercial Banks on 14.5.2001. A
copy of the guidelines is attached as Annexure.
(d): Similarly, the Joint Institutional Committee constituted by the
IDBI have also framed guidelines for financing of Film Industry.
These guidelines have also been circulated to financial institutions
for implementation. Most of the Banks/FIs are in the process of
adopting the guidelines for implementation after due approval of their
respective Boards.
(e): The schemes formulated by RBI/IDBI are expected to enable
extension of institutionalized credit to the Film Industry. Further,
against the prevailing high cost of funds from informal channels, the
institutional credit to the Industry is expected to reduce the cost of
funds in film production activity.
(f): The guidelines for financing Film Industry have taken into
account the high risk involved in funding this Industry and the
schemes have built in safeguards regarding security of advances to
this sector as well as appropriate mechanism for follow up and
monitoring.
