What are the Chore committee recommendations with respect to working capital?

Answer 1

Chore Committee Report 1979

This committee especially constituted only for the purpose to study the sanctionable

limits of the banker and the extent of the loan amount utilization of the borrower. The

another purpose of the committee to appoint that to provide the alternate ways and

means to afford credit facility to the industries to enhance the productive activities in the

country.

1. Continuance of the existing three system of credits by the banker viz cash credit,

loans and bills

2. No need to bifurcate the cash credit accounts of the borrower for the implementation

of the differential rate of interest

3. According to the specifications of the borrower, the banker should come to one

conclusion which in normal peak level and non peak level of operations only to the

tune of operations

4. No frequent sanction of ad hoc limits of borrowing from the banker

5. The overdependence on the bank credit should be lessened among the practices of

the industrialists through emphasizing the need of term finance.