Money & Banking

RBI increases export credit period to 15 months

Our Bureau Mumbai | Updated on May 22, 2020 Published on May 22, 2020

Time for completion of outward remittances against imports extended to 12 months

With India’s exports and imports getting impacted by the pandemic, the Reserve Bank of India (RBI) has decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from the existing 12 months to 15 months.

The central bank has also extended the time period for completion of outward remittances against normal imports (excluding import of gold/diamonds and precious stones/jewellery) into India from six months to 12 months from the date of shipment.

The increase in the maximum permissible period of pre-shipment and post-shipment export credit is for disbursements made up to July 31, 2020. This is expected to alleviate difficulties being faced by exporters in their production and realisation cycles.

The extension of the time period for completion of outward remittances against normal imports into India from six months to 12 months is from the date of shipment for such imports made on or before July 31, 2020. This is expected to provide greater flexibility to importers in managing their operating cycles in a Covid-19 environment.

Worst slump in 30 years

According to RBI Governor Shaktikanta Das, in the external sector, India’s merchandise exports and imports suffered their worst slump in the last 30 years as Covid-19 paralysed world production and demand. Merchandise exports plunged 60.3 per cent in April 2020 while imports contracted 58.6 per cent.

“The deepening of the contraction in global activity and trade, accentuated by the rapid spread of Covid-19, has crippled external demand. In turn, this has impacted India’s exports and imports, both of which have contracted sharply in recent months. In view of the importance of exports and imports to the economy, certain measures are being taken to support the foreign trade sector,” Das said.

Published on May 22, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.