RBI extends Re credit

NEW DELHI, July 28: The Reserve Bank of India has decided to extend rupee export credit facilities at concessional rate of interest to all ...

NEW DELHI, July 28: The Reserve Bank of India has decided to extend rupee export credit facilities at concessional rate of interest to all categories of supply of goods regarded as "deemed exports".

This was being done in view of the request of the Ministry of Finance to the RBI for examining the possibilities of extension of this facility in view of demands from exporters.

Under the new system, according to an official press note, categories of supply of goods regarded as "deemed exports" under paragraph of 10.2 of Exim Policy 1997-2002 would be

able to avail concessional export credit.

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Uptil now, the RBI had permitted banks to extend credit at concessional rate of interest under the "deemed export" categories to only projects financed by the IBRD, IDA and other bilateral or multilaterial agencies as notified by the Ministry of Finance.

The RBI has also advised banks to extend pre-shipment credit and post supply credit for a maximum period of 30 days or up to the actual date of payment by the receiver of goods whichever was earlier. The banks would be eligible for refinance from RBI for such credits extended both at pre-shipment and post supply stages.