RBI has decided to reduce the liquidity provided under the export credit refinance (ECR) facility from 50% of eligible export credit outstanding to 32% with immediate effect. To compensate for the reduction in ECR, it will also introduce a special term repo facility. This was in pursuit of the Dr. Urjit R. Patel Committee’s recommendations to drift away from sector-specific … [Read more...] about RBI Moves Away from Sector-Specific Refinance
Foreign Exchange
RBI Permits Longterm Credit To Exporters
The RBI will now permit the banks to offer long-term advances to exporters to facilitate long-term supply contact with exporters. The exporters must have a minimum of 3yrs satisfactory record and must not have come under the adverse notice of Enforcement Directorate or any such regulatory agency. They must have irrevocable orders in place with a clearly vetted contract that … [Read more...] about RBI Permits Longterm Credit To Exporters