: RBI announces measures to support export import; gives greater flexibility to SIDBI #FinanceIndia #StockMarketNEWS RBI announces measures to support export import; gives greater flexibility to SIDBI

@StockMarketNEWS Sun 24 May, 2020

Posted in: #FinanceIndia #StockMarketNEWS

RBI announces measures to support export import; gives greater flexibility to SIDBI #FinanceIndia #StockMarketNEWS
RBI announces measures to support export import; gives greater flexibility to SIDBI Mumbai, May 22 (KNN) The Reserve Bank of Indias Governor Shaktikanta Das today said the measures being announced today can be broadly delineated under four categories- measures to improve the functioning of markets and market participants; measures to support exports and imports; efforts to further ease financial stress caused by COVID-19 disruptions by providing relief on debt servicing and improving access to working capital; and steps to ease financial constraints faced by state governments.

He was giving his Statement on Developmental and Regulatory Policies.

Elaborating the measures, he said the RBI had earlier announced a special refinance facility of Rs 15,000 crore to Small Industries Development Bank of India (SIDBI) at RBIs policy repo rate for a period of 90 days for on-lending/refinancing.

In order to provide greater flexibility to SIDBI, RBI has decided to roll over the facility at the end of the 90th day for another period of 90 days.

The Governor said that the Voluntary Retention Route (VRR) scheme has evinced strong investor participation, with investments exceeding 90 per cent of the limits allotted under the scheme.

In view of difficulties expressed by FPIs and their custodians on account of COVID-19 related disruptions in adhering to the condition that at least 75 per cent of allotted limits be invested within three months, RBI has decided that an additional three months time will be allowed to FPIs to fulfil this requirement.

On measures to Support Exports and Imports, the central bank chief said in order to alleviate genuine difficulties being faced by exporters in their production and realisation cycles, it has been decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks fr0m the existing one year to 15 months, for disbursements made up to July 31, 2020.

Also, in order to enable EXIM bank to meet its foreign currency resource requirements, RBI has been decided to extend a line of credit of Rs 15,000 crore to the EXIM Bank for a period of 90 days (with rollover up to one year) so as to enable it to avail a US dollar swap facility.

Meanwhile, on extension of Time for Payment for Imports, Das said with a view to providing greater flexibility to importers in managing their operating cycles in a COVID-19 environment, it has been decided to extend the time period for completion of outward remittances against normal imports (i. e. excluding import of gold/diamonds and precious stones/jewellery) into India fr0m six months to twelve months fr0m the date of shipment for such imports made on or before July 31, 2020.