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Covid-19: RBI extends Rs 15,000-crore credit line to Exim Bank

Covid-19: RBI extends Rs 15,000-crore credit line to Exim Bank

As external trade growth hit a 30-year trough in April in the wake of the pandemic, the central bank on Friday stepped in to soften the blow by easing rules governing shipment credit as well as payment for imports, and also extend a Rs 15,000-crore line of credit to Exim Bank.
Exporters will also benefit from the decisions to extend a repayment moratorium by three months up to end-August and a cut in the benchmark lending rate by 40 basis points amid a renewed push for its transmission. Reserve Bank of India (RBI) governor Shaktikanta Das said the credit line to Exim Bank will be for a period of 90 days, with rollover up to one year, to enable it to avail of a dollar swap facility. This will help Exim Bank meet its foreign currency resource requirements and also aid the so-called project exports.

Similarly, acceding to exporters’ request, the RBI has raised the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from the existing 12 months to 15 months, for disbursements made up to July 31, 2020.

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