The Reserve Bank has extended the period, during which exporters are allowed concession on their overdue credit, to 180 days against current 90-day time. The prescribed interest rate as applicable to post- shipment rupee export credit may also be extended to overdue bills up to 180 days from the date of advance, the central bank said.
Exporters are extended rupee credit at an interest rate 2.5 per cent below benchmark prime lending rates. They are also allowed to enjoy this concession for 90 days beyond the time the credit becomes overdue. With the RBI''s decision, exporters can now continue to enjoy credit at lower interest rate for 180 days. The overall export growth in October this fiscal slipped to about 12 per cent along with several sectors such as carpets, tea and handicraft putting up a dismal show. Exports in October 2008-09 declined by 12.1 percent to 12.8 billion dollar from 14.58 billion dollar a year ago, resulting job losses in the sector. Commerce and Industry Minister Kamal Nath had said that the government would review the export target of 200 billion dollar for the current fiscal as the global economic slowdown is impacting it.
Exporters are extended rupee credit at an interest rate 2.5 per cent below benchmark prime lending rates. They are also allowed to enjoy this concession for 90 days beyond the time the credit becomes overdue. With the RBI''s decision, exporters can now continue to enjoy credit at lower interest rate for 180 days. The overall export growth in October this fiscal slipped to about 12 per cent along with several sectors such as carpets, tea and handicraft putting up a dismal show. Exports in October 2008-09 declined by 12.1 percent to 12.8 billion dollar from 14.58 billion dollar a year ago, resulting job losses in the sector. Commerce and Industry Minister Kamal Nath had said that the government would review the export target of 200 billion dollar for the current fiscal as the global economic slowdown is impacting it.
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