The Reserve Bank of India had constituted a Working Group on Bills Discounting under the Chairmanship of Shri K.R.Ramamoorthy, Chairman, Vysya Bank Ltd. The following were the terms of reference of the Working Group:

1. To examine the feasibility and suggest measures to strengthen the existing Bills discounting mechanism as an instrument for facilitating financing, in particular trade and services sectors, including discounting of Trade Bills against letters of credit opened by banks.
2. To examine the role and scope for introducing 'Bankers' Acceptance' facility.
3. To examine all critical and relevant issues including the necessary safeguards to be put in place before extending bills discounting to new areas like services and introduction of 'Bankers' Acceptance' facility.
4. Any necessary changes in the existing legal/regulatory framework that may be needed.
5. Any other issue relevant/incidental to the subject which the Group considers necessary.

The group has devised a 'Questionnaire on Bills Discounting' addressed to customers for getting their responses pertaining to the terms of reference. The Questionnaire has been published on the Reserve Bank website (www.rbi.org.in). The responses may be sent to mpdrbi6@bom7.vsnl.net.in.