Big relief! RBI extends export credit period to 15 months from 1 year
The Reserve Bank of India (RBI) in its Monetary Policy Meeting decided to cut down the Repo Rate by 40 bps to 4 per cent.
The Reserve Bank of India (RBI) in its Monetary Policy Meeting decided to cut down the Repo Rate by 40 bps to 4 per cent. This is a good move because only 20-22 per cent loan borrowers have taken this EMI moratorium and things are still not clear about the impact of the Coronavirus
RBI has 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," the MPC report stated. RBI Governor Shaktikanta Das announced on Friday that the Exporters had been demanding extension of the scheme in the wake of the COVID-19 crisis in India and across the world.
Banks are so far offering moratorium to retail customers on a blanket ‘opt-out’ basis and to wholesale customers on a case-to-case ‘opt-in’ basis.
The extension shall take effect from April 1, 2020 and end on March 31, 2021, covering a period of one year, it added. In November 2018, the interest subsidy was increased to 5 per cent from 3 per cent with an aim to boost MSME sector exports. Later, the government included other merchant exporters too under the scheme and allowed them interest equalization at the rate of 3 per cent on credit for export of certain products.