Maximum permissible period of pre & pro shipment export credit sanctioned by banks increased from 1 yr to 15 months

Mumbai, May 25 (KNN) 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 one year to 15 months.

This will be for the disbursements made upto July 31, 2020.

In a note to all Scheduled Commercial Banks (excluding RRBs), Primary Urban Co-operative Banks and Small Finance Banks, RBI said in view of the outbreak of Covid-19 pandemic, the exporters have been facing genuine difficulties such as delay / postponement of orders, delay in realisation of bills, etc.

In this regard, RBI has already permitted the period of realization and repatriation of the export proceeds to India to be increased from nine months to 15 months from the date of export in respect of exports made upto July 31, 2020.

In line with this relaxation, it has been decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from one year to 15 months, for disbursements made upto July 31, 2020, RBI said. (KNN Bureau)