For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

RBI Announces Measures To Boost Foreign Trade

|

In a bid to extend breather to the country's exporters' community which has been hit hard due to the Covid 19 pandemic, the RBI took to:

Export Credit Period Extended, Credit Line Offered To Exim Bank
 

1. Increasing Export Credit Period from 1 year to 15 months:

The MPC statement stated "Exporters have been facing genuine difficulties such as delay/ postponement of orders and delay in realisation of bills, which are adversely affecting their production and realisation cycles. It is in this context that the RBI permitted an increase in the period of realization and repatriation of export proceeds to India from nine months to 15 months from the date of export in respect of exports made up to or on July 31, 2020.

Amid the pandemic crisis, exporters were demanding extension in the scheme. Earlier the scheme offering interest rate subsidy for pre and post-shipment export credit was extended by a year till March 31, 2021. This benefit is availed as part of the ''Interest Equalisation Scheme for pre and post shipment Rupee Export Credit''.

In November 2018, to further enhance exports from the MSME sector, interest subsidy was raised to 5% from the earlier 3%. Thereafter, the government extended the benefit to other merchant exporters and offered them interest equalisation at the rate of 3% in lieu of export of some of the items.

2. Rs. 15,000 crore Credit Line For EXIM Bank:

As per the central bank, the EXIM or Export-Import Bank of India for its functioning depens on foreign currency borrowing which it is unable to raise due to the current outbreak of Covid 19 infection. Consequently, to lend a helping hand to the sagging foreign trade of the country, the facility has been extended.

"It has been decided to extend a line of credit of Rs 15,000 crore to the EXIM Bank for a period of 90 days from the date of availment with rollover up to a maximum period of one year so as to enable it to avail a US dollar swap facility to meet meet its foreign exchange requirements," Reserve Bank of India Governor Shaktikanta Das said.

GoodReturns.in

Read more about: exports
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more